New Jersey will use more of its cap-and-trade money to offset rising electricity bills — a shift away from emissions-cutting programs as Democratic Gov. Mikie Sherrill looks to deliver on her campaign promise to freeze utility rates.
The increase in ratepayer subsidies could redirect future funding from energy efficiency and building electrification. Earlier this week, those programs were among the ones that Sherrill’s transition advisers recommended for increased support.
But Thursday’s moves — which follow Sherrill’s Day 1 executive orders seeking to hold down energy costs — show how difficult it will be to deliver long-term clean energy investments alongside immediate ratepayer relief.
In a joint statement Thursday, three leaders of the Sherrill administration said they would seek to use proceeds from the Regional Greenhouse Gas Initiative to address affordability. RGGI, the Northeast’s cap-and-trade system for the power sector, has so far raised about $950 million for New Jersey.
