In 2026, New Jersey residents will face electricity bill increases of 1.5% to 5%, following a prior 20% rise due to spikes in wholesale capacity prices. PJM Interconnection reported wholesale capacity fees reaching $329.17 per megawatt-day, a 22% increase from the previous year. Demand for electricity is surging due to the proliferation of data centers and transitioning households. Although PJM noted some improvements in generation capacity and plant operations, disparities between supply and demand continue to be critical.
Electricity prices in New Jersey are projected to rise by 1.5% to 5% in 2026, adding to the recent 20% increase due to elevated wholesale capacity prices.
Wholesale capacity prices have surged to $329.17 per megawatt-day, reflecting a 22% increase from last year's record, indicating a major spike in electricity costs.
Demand for electricity is outpacing supply, driven by the expansion of data centers and the increase in electric homes, creating significant pressure on the grid.
Despite improvements such as new generation capacity and aging plants remaining operational, PJM reports that supply margins are still extremely tight, posing ongoing concerns.
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