Freezing electric rates in New Jersey is possible, but the mechanics are messy. (Heatmap)
The easy way: New Jersey’s 4 major utilities can help governor-elect Mikie Sherrill by deferring upgrades, stretching out cost recovery, and absorbing some near-term expenses to keep bills level. In return, they’d likely seek authority to build generation again, movement on storage and nuclear, and a friendlier regulatory posture.
The hard way: Dropping utilities’ allowed ROE would reduce bills almost immediately. It also risks Connecticut-style fallout à la litigation, stalled grid investments, and an openly hostile relationship between regulators and utilities.
The structural problem? Upstream in PJM, data center interconnections and tight regional supply are pushing capacity costs higher. If New Jersey leans into upcoming FERC proceedings to force large loads to pay their full transmission costs, it could take real pressure off retail rates.