Cato is a nonpartisan public policy research organization in Washington, D.C. that promotes individual liberty, limited government, free markets, and peace.
It is an honor to speak with you today about the impact of public policy on the affordability and security of energy for New Jersey families.
Unfortunately, unwise energy policies have put significant upward pressure on energy prices, especially the rates paid by customers of Atlantic City Electric Company.
In its 2023 rate case before the New Jersey Board of Public Utilities, Atlantic City Electric asked for a rate increase to cover the cost of a wide range of politically favored add-ons, including things like LED streetlights, an electric vehicle program, and the installation of “smart” meters.
The fact that electricity rates continue to rise—despite low natural gas fuel prices that have persisted for over a decade—means there is something wrong with the regulatory process.
Families in New Jersey and across the country are facing increased strain on household budgets, and they deserve better.
State regulators often point to cost increases that are out of their hands. They’ll say, “we can’t do anything about costs rising at the wholesale level—that’s a federal issue.”
Likewise, federal regulators often do the same. They’ll say, “we can’t do anything about costs rising at the retail level—that’s a state issue.”
I’m tired of seeing this finger-pointing and hearing the excuses. This broken regulatory process is how we get astronomical rate increases with no one held accountable.
But let’s be clear—policies at both the federal and state level are to blame.
At the federal level, we have an Environmental Protection Agency that’s hell-bent on closing existing power plants and making it nearly impossible to build new ones.
At the state level, New Jersey has embraced the mantra to green the grid and electrify everything. Hence the rate increases for everything from lightbulbs to EV charging stations.
Governor Murphy has established a goal to build eleven (11) gigawatts of offshore wind, which is a costly and unreliable source of energy.
New Jersey still—inexplicably—has a moratorium on new nuclear power plants at a time when electricity demand is skyrocketing.
Meanwhile, New Jersey has adopted the electric vehicle mandates of the state of California. All new cars sold in New Jersey will be electric by 2035.
Closing reliable power plants and mandating unreliable ones is a recipe for higher costs and a loss of energy security. Adding the transportation fleet to a weakened grid will only make matters worse.
New Jersey politicians are trying to green the grid when they should be bracing for blackouts.
A mandated energy transition puts politics over physics, and we should reject it because physics always wins.
It seems clear to me, however, that policymakers in Washington and Trenton will continue to push their agenda without regard to how it impacts families.
If I’m right, we won’t get what we deserve or what we hope for—we will get what we tolerate.
It is a fact that most Americans are unwilling to sacrifice their well-being on behalf of a forced energy transition. Polling tells us that only half the population is willing to spend just $1 per month to address climate change.
Yet Governor Murphy is willing to spend tens of billions—of your dollars—to build things like offshore wind.
This isn’t just a government spending problem. It’s a kitchen table problem because higher energy costs are regressive and raise the cost of everything.
I urge everyone in the audience today to think about a better path forward.
We deserve policies that make energy easier to produce and more affordable for American families and businesses.
We should bring competition to the electricity industry. For too long, we’ve tolerated monopolies that continue to raise prices and lower the quality of their service.
If Atlantic City Electric can’t deliver low-cost electricity, we should find someone who can.
We have some of the best energy resources in the world. We ought to take full advantage.
Let’s not forget the definition of energy in physics—it’s the ability to do work.
When I see the sign that says, “Trenton Makes and the World Takes,” I hope it means New Jersey’s manufacturing industry is thriving. But I want no part in taking Trenton’s energy policies.
The American people want reliable energy at low cost, and policymakers should listen.
In living rooms across the country, access to low-cost energy can make the difference between light and darkness.
It’s not too late to reverse course on unwise energy policies.
Energy can be a bright spot for the people of New Jersey if we let it.
I urge you to choose the path that will lead to a bright future.
Thank you.
