New Jersey electricity prices surged faster than any other state in 2025, according to a new congressional report, intensifying pressure on state leaders and deepening affordability concerns for residents already grappling with rising costs.

The analysis, released by the Joint Economic Committee, found that electricity rates in New Jersey jumped 16.9 percent last year — the largest increase in the country. The spike far outpaced the national average of 6.4 percent, with only Washington, D.C. recording a higher rise at 23.5 percent.

For the average household, the increase translated into an annual electricity bill of roughly $1,800 — about $260 more than in 2024.

Energy analysts point to a convergence of structural and market pressures driving the surge, with particular scrutiny on PJM Interconnection, the regional grid operator serving New Jersey and much of the Mid-Atlantic.

High clearing prices in PJM’s capacity auctions — reflecting tightening supply margins — have flowed directly to consumers, amplifying retail electricity costs. At the same time, demand has climbed sharply, fueled by the rapid expansion of data centers and broader electrification trends, including electric vehicles and electric heating systems.

Compounding the issue, New Jersey’s aging grid infrastructure requires significant capital investment to maintain reliability. Those upgrade costs are often embedded in utility rates, further pushing bills higher.

The price spike has become a flashpoint in Trenton. Gov. Mikie Sherrill, who took office in January, signed an executive order on her first day aimed at freezing rates and launching an investigation into grid management practices.

Democrats have pointed in part to broader federal energy dynamics, while Republicans have criticized the state’s energy transition policies, arguing that moving too aggressively away from traditional power generation has constrained supply and driven up costs.

Recent data shows that roughly 28 percent of New Jersey residents were unable to pay at least one energy bill in full over the past year. Many households report monthly increases of $25 to $30 for comparable usage.

With little indication of immediate price relief, some residents are turning to mitigation strategies, including state-backed energy efficiency programs and residential solar installations, in an effort to stabilize long-term costs.

For now, however, New Jersey remains at the top of an unwelcome ranking — facing the fastest-rising in electricity prices in the nation as policymakers race to respond.