New Jersey Governor Mikie Sherrill has declared an energy cost emergency in response to soaring electricity prices, according to Jin10. This move fulfills a campaign promise and serves as a warning to utility companies across the United States. The surge in electricity costs is attributed to the increasing demand on the power grid from artificial intelligence data centers.
Residents in New Jersey are experiencing higher electricity price hikes compared to most other regions. To address this, Sherrill has introduced a series of measures, including direct subsidies funded by the state government to offset the rising costs. Additionally, she has instructed regulatory bodies to pause or modify utility companies' investment plans and to review their business models.
With gubernatorial elections set to take place in several U.S. states in 2026, New Jersey's actions may inspire similar measures elsewhere. For utility investors focused on AI growth narratives, such interventions are emerging as significant political risks.