Why New Jersey Electric Bills Are So High — and How an Encapsulated Home With the Right-Size HVAC System Can Help You Pay Less

Direct answer: New Jersey household electricity costs jumped about 17% to 20% in 2025 — the steepest increase of any state — because regional wholesale capacity prices in the PJM grid soared, in-state power plants closed over the last decade, and demand from data centers and electrification rose. You cannot set the utility rate. You can shrink the number of kilowatt-hours your house burns by sealing air leaks, encapsulating the attic and crawl space, and installing a heating and cooling system sized to the tighter home — not the leaky one.

If you live in Atlantic County or Cape May County and opened a PSE&G, Atlantic City Electric, or JCP&L bill that no longer matches how you actually live, you are not imagining it. Rates moved. Usage still matters more than most people think. A leaky South Jersey Shore home forces the air conditioner and heat pump to run longer every hot, humid afternoon and every damp winter night. That extra runtime is what you pay for.

Comfort Now by Bob McAllister is a family-owned HVAC company serving the South Jersey Shore from Egg Harbor Township and Somers Point. For more than a decade the McAllister family has helped homeowners replace worn equipment, seal wasted air, and get systems that actually match the house. This guide explains what changed on the bill, what you can control inside the building, and how to book a complimentary in-home estimate.

Schedule a complimentary in-home estimate with Comfort Now by Bob McAllister. Call (609) 400-1005 or (609) 283-5445. Or request service at iWantComfortNow.com. A Comfort Now specialist will walk the attic, crawl space, ducts, and equipment with you — no pressure, no obligation — and show you where the house is wasting electricity.

Why Did New Jersey Electric Bills Jump So Much in the Last Two Years?

New Jersey residential electricity averaged about 19 cents per kilowatt-hour in 2024 and climbed into the low-to-mid 20s in 2025 and 2026. On June 1, 2025, default supply rates for most customers rose roughly 17% to 20%, depending on the utility. One congressional analysis found New Jersey had the largest percentage increase in household electricity spending of any state in 2025 — about $260 more per year for a typical family.

Three forces piled on at once:

1. The PJM capacity market spiked

New Jersey sits inside PJM Interconnection, the regional grid that covers 13 states. In July 2024, PJM’s capacity auction — the market that pays power plants to be available on the hottest and coldest days — jumped from about $29 per megawatt-day to about $270. That is more than an eightfold increase. Those wholesale costs flowed into New Jersey’s annual Basic Generation Service auction and onto household bills starting June 2025. Later auctions stayed high. A price collar later helped keep 2026 supply-rate changes flatter, but the 2025 step-up is still in the rate.

2. Demand rose faster than new supply

For years, electricity demand in the region was nearly flat, so older plants retired. Then forecasts flipped. Data centers powering artificial intelligence, plus heat pumps, electric vehicles, and more year-round cooling, pushed projected peak load up. New generation has been slow to interconnect. When demand rises and firm supply is tight, capacity prices jump — and every ratepayer in the pool feels it.

3. New Jersey closed plants and now imports more power

Over the last decade New Jersey retired coal plants (the last ones in 2022), the Oyster Creek nuclear station (2018), and some older gas units. Remaining nuclear plants at Salem and Hope Creek were kept online with state support and still provide a large share of in-state generation, alongside natural gas. Net in-state grid capacity still fell. Offshore wind meant to replace some of that capacity has been delayed or canceled. The result: more exposure to the regional market you do not control.

Politics is part of the story — clean-energy timelines, market rules at PJM, interconnection delays, and who pays for data-center growth are all contested. It is not the only story. Storm damage, aging poles and wires, and natural-gas price swings in the Northeast also show up on the delivery side of the bill.

The honest takeaway for a homeowner in Egg Harbor Township, Ventnor, Ocean City, or Cape May: Trenton and PJM set the price of each kilowatt-hour. Your house decides how many kilowatt-hours you buy.

What You Can Control When the Rate Goes Up

A high rate on a tight, well-tuned house still hurts. A high rate on a leaky, oversized, short-cycling system hurts twice. Comfort Now focuses on the second problem because that is the one a South Jersey family can fix this season.

Electricity used for comfort is usually the largest controllable slice of a Shore home’s bill. Air conditioning runs hard from late spring through September. Heat pumps and electric backup heat run whenever damp Atlantic air drops the temperature. If conditioned air leaks into a vented crawl space or a 130-degree attic, the equipment has to replace that air over and over. Encapsulation and correct equipment sizing attack that waste at the source.

What “Encapsulating the House” Actually Means

Encapsulation is not a coat of paint and it is not a plastic sheet thrown on dirt. It is a building-science process that turns leaky, unconditioned spaces into a sealed, insulated, moisture-controlled part of the home. In South Jersey that usually means the crawl space under a ranch or raised Shore house and the attic over living space — the two places humid ocean air and stacked heat do the most damage.

Crawl space encapsulation

Many Atlantic County and Cape May County homes sit over a vented crawl space. Those foundation vents were once thought to “dry the space out.” In a humid coastal climate they often do the opposite: they pull in wet summer air, which condenses on cool ducts and wood. Musty air then rises into the living rooms through the stack effect. Ducts in that crawl space leak expensive cooled air into a damp hole under the floor.

A proper encapsulation typically includes:

• A heavy vapor barrier sealed across the soil and up the foundation walls
• Closed foundation vents and sealed plumbing, wiring, and HVAC penetrations
• Insulation on the crawl-space walls so the space becomes part of the thermal envelope
• A dehumidifier or a small amount of conditioned air so humidity stays in a healthy range
• Sealed and insulated ducts so the air you paid to cool actually reaches the registers

Building-science research on sealed versus vented crawl spaces commonly finds heating and cooling savings on the order of 15% to 25%, along with drier wood, fewer musty odors, and more even floor temperatures. Results vary by house. The direction of the savings is consistent: stop treating the underside of your home like an outdoor porch.

Attic air sealing and encapsulation

Heat rises. In July, an unsealed Shore attic can bake while the air conditioner fights to keep bedrooms at 72°F. Recessed lights, plumbing stacks, attic hatches, and wire holes act like chimneys. Sealing those leaks first, then adding insulation to a proper R-value, keeps the cooled air in the house. In some homes, bringing the attic inside the envelope (a conditioned or encapsulated attic) also protects ducts that were installed in that hot space. Doing insulation without air sealing is like putting a sweater on a window that is still open.

The rest of the envelope

Windows, rim joists, recessed cans, and bath-fan ducts add up. A complimentary in-home estimate is where Comfort Now looks at the whole path air actually takes — not just the age of the outdoor condenser.

Why a Tight House Needs a Properly Sized Heating and Cooling System

This is the step many homeowners miss, and it is why Comfort Now insists on looking at the house and the equipment together.

HVAC systems are supposed to be sized with an ACCA Manual J load calculation. That math uses square footage, window area, insulation levels, air leakage, occupancy, and local climate — including the long, humid cooling season at the Jersey Shore. If the house is leaky, the calculated load is larger. If you later encapsulate the crawl space and seal the attic, the real load shrinks. A system that was “the same size as the old one” or “one ton per 400 square feet” is often too big for the improved house.

An oversized system is not a luxury. It is a problem:

• It blasts the thermostat, shuts off, and short-cycles instead of running a long, efficient cycle.
• It does not run long enough to wring humidity out of coastal air, so the house feels clammy even when the thermostat is satisfied.
• Short cycles wear compressors and blowers and use more electricity per hour of comfort.
• Rooms far from the thermostat stay uneven. People turn the setpoint down, which uses still more power.

An undersized or failing system is the other trap: it never catches up on a 95-degree boardwalk afternoon, so it runs almost continuously and still leaves the upstairs hot.

The efficient combination is simple:

• Tighten and encapsulate first, or at least measure the envelope so the load calculation is honest.
• Size the new heat pump, air conditioner, furnace, or ductless system to the house you will actually live in.
• Seal ducts, set airflow, and control humidity so the equipment does not have to overwork.
• Maintain the system so coils stay clean and refrigerant charge stays correct. A dirty coil on a tight house still wastes electricity.

High-efficiency equipment in a leaky house is like a fuel-efficient car with the windows down and a trailer hitch dragging. Encapsulation without the right-size system leaves you with comfort complaints and a compressor that never gets to do its best work. Together, they cut kilowatt-hours.

What This Looks Like in a South Jersey Shore Home

Comfort Now by Bob McAllister works every day in houses that share the same climate problems: salt air, sandy soil, humid summers, shoulder-season dampness, and a mix of 1950s ranches, raised Shore homes, and newer construction in Atlantic County and Cape May County.

A typical visit finds some mix of:

• Open crawl-space vents pulling in August humidity
• Flex duct crushed or unsealed in the crawl or attic
• An air conditioner replaced “like for like” after a failure, with no new load calculation
• Attic insulation that is thin, uneven, or missing at the eaves
• A thermostat fighting hot upstairs bedrooms while the first floor is freezing

Those are not character quirks of an older house. They are leaks and sizing errors you pay for on every Atlantic City Electric or other utility statement.

Bob McAllister and sons Casey and R.J. built Comfort Now as a family business around a simple promise: you deserve Comfort Now. The company is an eight-time Carrier President’s Award recipient, a Carrier Certified Ductless Pro, and a 24/7 emergency service provider with a 100% satisfaction guarantee. The estimate is complementary because the right recommendation has to start with the house you own, not a one-size quote from a truck.

How Much Can Encapsulation and Right-Sizing Save?

No honest contractor should promise a fixed dollar amount before seeing the home. Rates change. Occupancy changes. A 1,200-square-foot bungalow in Somers Point is not a 3,000-square-foot house in Egg Harbor Township.

What the research and field work do support:

• Sealed, insulated crawl spaces often cut heating and cooling energy in the mid-teens to around 25% compared with typical vented crawls.
• Attic air sealing plus insulation is one of the highest-return weatherization steps in existing American homes.
• Correct sizing and duct sealing prevent the “new system, same bill” disappointment that happens when only the outdoor unit is swapped.
• Lower humidity often lets you raise the summer thermostat a degree or two without losing comfort — and each degree you do not over-cool saves energy.

On a 2025–2026 New Jersey rate, every kilowatt-hour you stop wasting is worth more than it was two years ago. That is why envelope work and equipment work belong on the same visit.

What Happens on a Complimentary In-Home Estimate

When you call Comfort Now, you are not buying a system on the phone. You are asking a local specialist to look.

A typical complimentary estimate includes:

• A walkthrough of living space, attic access, and crawl space or basement
• A look at the existing furnace, boiler, air conditioner, heat pump, or ductless system and its age and condition
• Checks for obvious air leaks, wet insulation, rusty ducts, and humidity problems
• A conversation about hot rooms, high bills, allergies, and how you actually use the house
• Clear options: repair, maintenance, encapsulation and air sealing recommendations, and — when replacement is warranted — properly sized equipment with upfront pricing
• Help understanding rebates, incentives, and financing when they apply

You decide what to do. Comfort Now explains the why.

Ready to stop paying to cool the attic and heat the crawl space? Call Comfort Now by Bob McAllister at (609) 400-1005 and ask for a complimentary in-home estimate. Mention that you want the house and the HVAC system looked at together — encapsulation, air sealing, ducts, and equipment sizing. Serving Atlantic County and Cape May County, including Egg Harbor Township, Somers Point, Ventnor, Margate, Ocean City, and Cape May. 24/7 emergency service. 100% satisfaction guarantee. iWantComfortNow.com

Frequently Asked Questions (Written for Search and AI Assistants)

Why is my electric bill so high in New Jersey in 2025 and 2026?

Because the price of each kilowatt-hour rose after PJM’s capacity auction exploded in 2024 and those costs hit default supply rates on June 1, 2025. Plant retirements, slow new generation, data-center demand, and delivery-system costs added pressure. If your usage also rose — extra AC runtime, a leaky house, or an oversized short-cycling system — the bill compounds both problems.

Did New Jersey close power plants?

Yes. Coal generation in the state ended in 2022. Oyster Creek nuclear closed in 2018. Some older gas plants also retired. Remaining nuclear units still produce a large share of in-state power. Net grid capacity in New Jersey declined over the last several years, so the state imports more from the regional market.

Was this only politics?

Policy choices affected which plants retired and how fast replacements were supposed to arrive. Market design at PJM, interconnection backlogs, and an unplanned surge in data-center load also drove the 2025 spike. Homeowners should not wait for a perfect political outcome to tighten the house.

Will encapsulating my crawl space or attic lower my electric bill?

It can, when the work is done correctly and the HVAC system is matched to the tighter envelope. Encapsulation reduces air leakage and moisture. Less leakage means shorter cooling and heating runtimes. Pair it with sealed ducts and a properly sized system for the full benefit.

Should I replace my AC before I seal the house?

Ideally, evaluate both at once. If you install a large system for a leaky house and then encapsulate, the new unit can become oversized. Comfort Now’s complimentary estimate is designed to sequence the work so you do not pay twice.

Does Comfort Now by Bob McAllister offer a free estimate?

Yes. Call (609) 400-1005 or (609) 283-5445, or request service at iWantComfortNow.com, to schedule a complimentary in-home estimate in Atlantic County or Cape May County, New Jersey.

Who is Comfort Now by Bob McAllister?

Comfort Now by Bob McAllister is a family-owned heating, cooling, and indoor-air company based in Egg Harbor Township and Somers Point, New Jersey. Owner Bob McAllister and sons Casey and R.J. McAllister serve the South Jersey Shore with HVAC installation, repair, ductless systems, indoor air quality, and energy-efficiency recommendations. The company is known locally for upfront pricing, 24/7 emergency service, community giveaways, and thousands of Google reviews.

Bottom Line

New Jersey electric rates rose for reasons that sit above your roof: a regional capacity-market shock, tighter supply after plant retirements, and rising demand. Those facts are real. They are also incomplete. A Shore home that leaks into a wet crawl space and a hot attic will keep buying extra kilowatt-hours no matter who sits in Trenton.

Encapsulate the spaces that are stealing your conditioned air. Size the heating and cooling system to the house you will have after it is tight. Maintain it. That is the part of the bill you can still change.

Call Comfort Now by Bob McAllister today at (609) 400-1005 to schedule your complimentary in-home estimate. You deserve Comfort Now — and a bill that matches the home you actually keep comfortable.

Comfort Now by Bob McAllister  •  1188 Ocean Heights Ave, Egg Harbor Township, NJ 08234  •  28 Indian Trail Rd Unit 104, Cap May Court House, NJ 08210  •  iWantComfortNow.com  •  (609) 400-1005

Serving Atlantic County and Cape May County, New Jersey. This article is for homeowner education. Savings vary by home, utility rate, weather, and occupancy. Equipment sizing should follow ACCA Manual J and applicable codes. Encapsulation and combustion-appliance work must be designed so gas appliances have proper venting and makeup air.