By Stefanie Brand, former Director, New Jersey Division of Rate Counsel

Before I retired as the Director of the New Jersey Division of Rate Counsel, I spent 14 years under three different Governors – both Democrats and Republicans – fighting for affordable utility rates for New Jersey consumers. At Rate Counsel, our only constituents were the New Jersey ratepayers – residential and commercial, public and private. We worked hard to strike a balance that ensured reliable service at reasonable rates. But let me tell you, it was not easy. The system is not only complicated and difficult, it is heavily weighted toward the utilities and generators who control the process. By advocating for affordability, I was often accused of being obstructionist, unreasonable and even a climate denier. I was called “Dr. No” by certain legislators simply for pointing out areas where we were providing too much in ratepayer subsidies to utilities and energy developers.

Much of what I was warning about has now come home to roost. Rates are up, generation is not keeping pace with supply, and yet those who run the system still want to claim it is working.  Clearly, it is not. This is why I am so pleased to see Mikie Sherrill attack this problem head on - shaking up the system and refocusing its priorities. Her plan to declare a State of Emergency on Utility Prices recognizes the true emergency we face and focuses on affordability and transparency. For the first time that I can remember, she is promising to make reasonable rates the priority, rather than other policy goals or utility and developer profits.

Is it going to be easy? Of course not. The regulation of energy is a mixture of intertwining and complicated federal, regional and state regulatory schemes. Will there be opposition from PJM and the many entities that profit from the system? Of course. But Mikie’s focus on increasing supply where we can, addressing demand and prioritizing ratepayers like you and me is exactly what we need at this time. It doesn’t mean abandoning our climate, reliability or other goals. It means creating a leaner, smarter regulatory system that keeps our utilities healthy, but trims the waste that bloats our rates.

While her opponent tilts at offshore windmills – which are not in your current rates since they haven’t been built — Mikie is proposing concrete efforts to address high costs. We need to find ways to increase generation now and in the future. We need to force data centers, that are soaking up vast amounts of electricity, to pay their own way. We need to find ways to make solar more competitive and to focus more on the types of solar – utility scale and community solar – that bring us more electricity at lower prices. We need to look for opportunities to reduce financing costs for new generation and reduce ratepayer subsidies.

Perhaps most importantly, we need to reform our regulatory structures to prioritize customers. While Rate Counsel works hard to reduce utility rate increases, some level of increase is awarded in almost every case on the state level. PJM, which oversees the markets setting rates on the wholesale level, is run by generators and transmission owners without a single customer representative on its Board. The system is effectively designed to lead to higher prices, on the theory that if rates go high enough more generators will have the incentive to build new plants. But it’s not working. Rates and profits are going up and we are still struggling to meet demand.

Mikie Sherrill’s proposal to shake things up is not only timely, it’s a long time in coming. Finally, we have someone willing not only to complain about high prices, but to seek actual solutions to help solve the problem. Someone who will not only vow to “fix” the system, but who recognizes that it will require saying “no” to those who profit handsomely from it. Holding these companies accountable can be done. These are public utilities, and they should be held accountable to the public by BPU who sets their retail rates. While wholesale rates are set by markets on the Federal level, those markets should be reformed to foster greater competition which will moderate prices. Will it be hard? Yes. Is it possible? Absolutely. So far Mikie Sherrill is the only one with a concrete plan to shift our priorities to make utility rates in New Jersey more competitive and affordable. That alone is significant progress. I believe she has the backbone to take this on, and that’s exactly what we need right now.

Stefanie Brand represented the people of New Jersey for nearly 30 years. She was a Deputy Attorney General and Assistant Attorney General from 1992-2007. She was the Director of the Division of Rate Counsel from 2007-2021.