Trenton, New Jersey. Mikie Sherrill, a Democrat running for governor, has blamed President Donald Trump for New Jersey’s recent 20% increase in energy rates, which went into effect just a few weeks ago on June 1.
Sherrill attacked Trump in a post on X today, saying that his activities, such as tariffs, had increased electricity prices in the Northeast.
The price spike’s underlying causes, according to energy experts and state officials, predate Trump’s presidency and are caused by regional market dynamics as well as past policy failures by President Joe Biden, Governor Phil Murphy of New Jersey, and the Democratic-controlled New Jersey Assembly and legislature.
The comments were made by Sherrill, a U.S. Representative representing the 11th District of New Jersey, during a contentious online discussion with Republican opponent Jack Ciattarelli. Sherrill wrote, “I can name a few [issues],” enumerating complaints against Trump, such as rising electricity prices in the Northeast.
The energy boost has been presented by her campaign as part of a larger attack on Trump’s economic policies, specifically his tariffs, which she claims hurt both consumers and companies. The most of the harm has been caused by Phil Murphy, the governor of additional Jersey, and his botched clean energy plan, which hasn’t yet generated a single watt of additional electricity for the Garden State.
The truth for the rise in energy prices in New Jersey is more nuanced and linked to events that began long before Trump took office on January 20, 2025. The main causes of the increase, according to the New Jersey Board of Public Utilities (NJBPU) and industry analysts, are a mix of growing demand for electricity, supply shortages, and regional power grid inefficiencies.
Phil Murphy supporters and appointees abound at the NJBPU.
The NJBPU is in charge of the yearly Basic Generation Service (BGS) auction, which has a significant influence on energy pricing in New Jersey. Costs for the 2025–2026 period of this auction, which determines energy supply rates for the four largest utilities in the state—Public Service Electric and Gas (PSE&G), Jersey Central Power & Light (JCP&L), Atlantic City Electric, and Rockland Electric—rose sharply. When the results were revealed in February 2025, home bill increases ranged from 17% to 20%, which means the average household will pay an extra $20 to $28 a month.
While Mikie Sherrill is blaming Trump for the governor’s clean energy agenda being stalled by failed wind energy projects, the majority of New Jersey Democrats had already chosen another culprit.
The PJM Interconnection, the regional grid operator that oversees the electrical supply for New Jersey and twelve other states, was that villain, according to NJBPU President Christine Guhl-Sadovy. Capacity costs nearly tenfold increased from $34 to $270 per megawatt-day in some locations in July 2024 as a result of PJM’s capacity auction, a distinct procedure that guarantees future electricity supply. Rising demand and constrained supply, which were already present during the previous administration, combined to cause this sharp increase.
The growth of data centers, especially those that support artificial intelligence (AI) activities, is a significant factor in the demand spike.
Due to their high electricity use, these facilities have put a strain on PJM’s grid. According to PJM’s 2025 forecast, data centers could account for about a quarter of the grid’s electricity use by 2040, with summer peak demand expected to increase by more than 3% yearly during the following 10 years. Long before Trump took office again, this tendency started when tech businesses increased their presence in the PJM region.
Limitations in supply have also been a major factor. Delays have plagued PJM’s interconnection queue, which handles new energy projects. As of early 2025, 79 renewable energy projects totaling more than 4 gigawatts of capacity were blocked in New Jersey alone. PJM has been accused by critics, including state authorities, of prioritizing fossil fuel generating over renewable energy projects like offshore wind and solar. For instance, there was a big hole in New Jersey’s sustainable energy plans when Rsted’s Ocean Wind 1 and 2 projects were canceled in late 2023 because of growing prices and supply chain problems. Trump’s actions have no bearing on these setbacks, which happened under the Biden administration.
The supply-demand imbalance has been exacerbated by New Jersey’s aggressive renewable energy targets, which were established under Governor Phil Murphy. By 2035, Murphy’s Energy Master Plan, which was unveiled in 2019, intends to use only clean energy, mostly from offshore wind and solar. However, the state’s dependence on these sources, together with the 2022 closure of Atlantic City Electric’s coal plants and the 2023 divestiture of PSEG’s fossil fuel stations, have decreased the amount of generation capacity that is available. In February 2025, NJBIA Deputy Chief Government Affairs Officer Ray Cantor pointed out that measures that precede Trump’s presidency will cause prices to rise as a result of rising demand and falling supply.
Sherrill’s assertion that the energy price increase is the result of Trump’s policies and tariffs ignores the timing and mechanisms of the price increase. PJM’s capacity auction from July 2024, six months before to Trump’s inauguration, served as the basis for the BGS auction results, which were finalized in February 2025. These auctions did not take into account tariffs, which Sherrill mentioned as a cost driver. The June 1, 2025, rate boost was unaffected by Trump’s proposed tariffs on steel, aluminum, and other materials, even though they would raise the price of electrical equipment in the future.
Following the auction results, Trump’s energy policies were implemented, including his executive order halting offshore wind leasing. These actions did not affect the recent price spike, but they might have an effect on New Jersey’s long-term clean energy objectives. Likewise, Sherrill’s mention of Trump’s reductions to the Low-Income Home Energy Assistance Program (LIHEAP) confuses the root causes of the rate hike with a different problem: government financing for energy assistance. The April 2025 LIHEAP reduction have an impact on affordability initiatives, but they have no effect on the market forces influencing power prices.
Sherrill’s comments coincide with her candidacy to become governor in 2025, replacing term-limited Governor Murphy. Republicans and Democrats are pointing fingers at energy costs, which have become a political hot spot in New Jersey. While Democrats, like Sherrill, have attempted to attribute the problem to other forces, such as Trump’s policies, Republicans, like Senate Minority Leader Anthony Bucco, contend that Murphy’s clean energy plan has put ideology before of cost.
PJM has also been under fire from Governor Murphy, who described the cost increase as a predictable and avoidable disaster. He proposed executive measures in May 2025 to lessen the spike, such as mandating utilities to submit cost-deferment plans and accelerating new solar initiatives. Murphy, Senate President Nick Scutari, and Assembly Speaker Craig Coughlin also announced a $430 million relief program in June 2025 that would give all 3.9 million New Jersey customers at least $100 in bill credits. The package was financed by clean energy and greenhouse gas accounts.
