Governor Mikie Sherrill on Tuesday signed a package of major energy bills aimed at lowering electricity costs for New Jersey residents while announcing immediate utility bill credits for millions of households.

According to the governor’s office, the legislation, along with additional energy initiatives implemented over the past six months, is expected to save New Jersey ratepayers more than $1 billion annually, based on an analysis by Synapse Energy Economics.

As part of the announcement, every one of the state’s approximately 3.6 million electric ratepayers will receive a $25 utility bill credit through the Residential Universal Bill Credit (RUBC) program. Lower- and moderate-income households will also receive an additional $150 credit through the Residential Energy Assistance Payment (REAP) program.

The newly signed legislation includes measures to eliminate what state officials described as unnecessary utility incentives that increase electricity costs, strengthen state oversight of utility infrastructure projects to reduce wasteful spending, and require large data centers to pay a greater share of the costs associated with the electricity they consume rather than shifting those expenses onto residential and small-business customers.

One of the bills requires utility companies to obtain additional state approval before moving forward with certain transmission infrastructure projects, while another creates a separate rate structure for large data centers to ensure they cover the costs of the energy and grid infrastructure they require.

Governor Sherrill said the measures are intended to make energy more affordable while improving the reliability of New Jersey’s electric grid.

The administration also announced that the New Jersey Board of Public Utilities is renewing the Summer Termination Program, which protects eligible households from utility shutoffs during periods of extreme heat, and approved 12 new solar projects expected to generate enough electricity to power approximately 45,000 homes.

The legislation received bipartisan attention, including support from Assemblyman Avi Schnall, who sponsored one of the bills. Schnall said the measure modernizes critical infrastructure while requiring greater oversight of utility projects to help improve reliability and reduce costs for ratepayers.