Surging electricity prices have become a central issue in New Jersey’s gubernatorial race and may play a significant role in the 2026 midterm elections. Across the United States, power prices have increased by 6.2 percent over the past year, outpacing the general inflation rate of 2.9 percent.
In New Jersey, household electricity rates rose about 22 percent in July compared to the previous year. The topic featured prominently during the recent Garden State gubernatorial debate, with both major candidates addressing it at the outset.
“We have an affordability crisis because of property taxes and electricity bills,” said Republican nominee Jack Ciattarelli.
“I am laser focused on driving down your costs, making New Jersey more affordable. I’m going to start by declaring a state of emergency on energy costs,” said Democratic Rep. Mikie Sherrill (N.J.).
Experts attribute rising rates to increasing demand from new and planned data centers combined with insufficient supply being added to the grid. Arah Schuur, a research specialist at Rutgers University’s Center for Urban Policy Research, explained that governors have limited ability to directly affect electricity prices.
Schuur stated that PJM, the regional grid operator serving about a dozen states including New Jersey, “really holds the reins when it comes to bringing on new supply.” She noted that delays in adding new power sources often result from lengthy timelines required for project financing and approval processes.
“Economics, policy, PJM’s regulations, [have] all caused supply constraints,” Schuur said.
