Surging electricity prices have risen to the forefront of the New Jersey governor\u2019s race \u2014 and could be a key issue in the 2026 midterms.<\/p>\n\n\n\n
Nationwide, power prices have risen 6.2 percent<\/u><\/a> over the past year, more than doubling the 2.9 percent inflation rate overall. <\/p>\n\n\n\n In New Jersey, household electricity rates were about 22 percent higher<\/u><\/a> in July than the year before. <\/p>\n\n\n\n In the recent Garden State gubernatorial debate, both candidates mentioned the issue in their opening statements. <\/p>\n\n\n\n \u201cWe have an affordability crisis because of property taxes and electricity bills,\u201d Republican nominee Jack Ciattarelli<\/u><\/a> said.<\/p>\n\n\n\n \u201cI am laser focused on driving down your costs, making New Jersey more affordable. I\u2019m going to start by declaring a state of emergency on energy costs,\u201d Democratic Rep. Mikie Sherrill<\/u><\/a> (N.J.) said.<\/p>\n\n\n\n While both candidates say there\u2019s a problem, they have different plans to approach it. <\/p>\n\n\n\n Sherrill has called<\/u><\/a> for using \u201cratepayer protection funds\u201d as a \u201ctemporary financial lifeline to help cover the sudden rise in utility costs\u201d and more broadly to push for the buildout of renewable energy, batteries and energy efficiency upgrades.<\/p>\n\n\n\n Ciattarelli, meanwhile, has called for withdrawing from the Regional Greenhouse Gas Initiative, an agreement among Northeast states to cap their emissions<\/u><\/a>. He also said during the debate that he plans to expand nuclear and natural gas plants.<\/p>\n\n\n\n So why are prices so high?<\/strong><\/p>\n\n\n\n Experts say the rising rates are due to both increased demand from new and planned data centers and not enough supply connecting to the grid to meet that demand.<\/p>\n\n\n\n Frank Felder, principal at Independent Electricity Consultants and former director of the Rutgers Energy Institute said the potential for new, power-hungry data centers to be built is driving up forecasted demand, and therefore electric prices. <\/p>\n\n\n\n \u201cThere\u2019s just been a slate of proposed data centers,\u201d he said. <\/p>\n\n\n\n \u201cThe proposals can be the size of a large power plant, if not bigger\u2026if you increase demand for \u2026 [an] almost fixed supply, then prices go up,\u201d he said.<\/p>\n\n\n\n