Trenton, NJ – April 30, 2025 – Governor Phil Murphy’s ambitious pursuit of a “clean and renewable” energy future has hit a wall, leaving New Jersey teetering on the edge of a fiscal cliff and ratepayers facing skyrocketing utility bills.
The governor’s signature energy policies, once hailed as a bold step toward sustainability, are now under fire for their staggering costs and questionable execution, as the state grapples with mounting debt and an overburdened energy grid.
The latest proposal, equitable energy pricing, penalizing wealthy residents and subsidizing the less fortunate, could compound an already bad situation in New Jersey.
Murphy’s administration set aggressive targets to transition New Jersey to 100% clean energy by 2035, including massive investments in offshore wind, solar, and energy storage projects. The cornerstone of this agenda was the development of large-scale offshore wind farms along the Jersey Shore, projected to power millions of homes. However, these projects have been plagued by delays, supply chain issues, and ballooning costs, leaving taxpayers and ratepayers to foot the bill.
New Jersey Assemblymen Alex Sauickie, Christian Barranco, and Brian Rumpf sent a formal request on April 24, 2025, urging Senate and Assembly committee leaders to invite Board of Public Utilities (BPU) Commissioner Zenon Christodoulou to testify at an upcoming joint hearing. The request follows Christodoulou’s public criticism of the BPU’s internal decision-making, describing the process as dismissive of outside opinions and heavily skewed toward predetermined outcomes. His comments, described as unusual and troubling, highlighted how internal dissent is “not common and quite often and unfortunately discouraged.”
Citing the BPU’s current involvement in delaying rate hikes—an initiative linked to Governor Murphy—the lawmakers argued that Christodoulou’s insights would offer essential context on both energy policy and transparency. They emphasized the need for full accountability in agencies that regulate utility rates, especially as residents face mounting costs. The Assembly members believe Christodoulou’s willingness to speak out could shed light on how political pressures are shaping policy decisions behind closed doors.
The state’s flagship offshore wind initiative, led by Danish energy giant Ørsted, has faced repeated setbacks. Originally budgeted at $1.6 billion, the project’s costs have soared past $3 billion due to rising material prices, labor shortages, and regulatory hurdles. Ørsted announced last month that it may abandon the project entirely, citing “unfavorable economic conditions.” Similar troubles have beset other wind and solar ventures, with several developers pulling out of contracts or demanding hefty subsidies to continue.
“Governor Murphy sold New Jerseyans a dream of green energy, but what we’ve gotten is a financial nightmare,” said State Senator Michael Testa (R-Cumberland). “The costs keep climbing, and the benefits are nowhere in sight. Ratepayers are being squeezed to pay for projects that may never materialize.”
The fiscal toll is stark.
New Jersey’s Board of Public Utilities (BPU) estimates that the state’s clean energy initiatives have added $1.2 billion in surcharges to utility bills since 2021, with the average household now paying an additional $200 per year. These costs are expected to double by 2030 if current policies remain in place.
Meanwhile, the state has taken on $4 billion in new debt to subsidize renewable energy projects, contributing to a budget deficit projected to hit $8 billion next year.
Ratepayers are feeling the pinch. “My electric bill has gone up 30% in two years, and I’m barely using more power,” said Maria Gonzalez, a small business owner in Newark. “How am I supposed to keep up with this? The governor talks about saving the planet, but who’s saving us?”
Critics argue that Murphy’s administration underestimated the challenges of scaling up renewable energy in a state with high land costs and complex regulatory frameworks. Offshore wind, in particular, has proven far more expensive than anticipated, with turbines requiring costly maintenance and transmission infrastructure to deliver power to the grid. Solar projects, while more successful, have been slowed by permitting delays and local opposition to large-scale installations.
Environmental advocates, however, defend the governor’s vision. “Transitioning to clean energy is a massive undertaking, and there will be growing pains,” said Sarah Mitchell, director of the New Jersey Sierra Club. “The costs today are an investment in a sustainable future. Fossil fuels are a dead end, and we can’t afford to backtrack.”
Yet even some Democrats are questioning the pace and scale of Murphy’s agenda. Assemblywoman Carol Murphy (D-Burlington) recently called for a “pause and reassessment” of the state’s renewable energy commitments, warning that “we can’t keep piling costs onto working families without delivering results.”
The governor’s office remains defiant.
In a statement, Murphy vowed to “stay the course,” arguing that New Jersey’s clean energy goals are non-negotiable.
“Climate change is the greatest challenge of our time, and we’re leading the way,” he said. “The transition won’t be easy, but it’s necessary.”
But with utility shutoffs rising and public frustration mounting, the governor’s green gamble is looking increasingly untenable. A recent Monmouth University poll found that 62% of New Jerseyans support renewable energy in principle but only 38% are willing to pay higher bills to achieve it.