By: Rich Acciavatti, Sprague Energy
As cannabis cultivators and operators know all too well, energy isn’t just a cost center—it’s a lifeline. Beginning June 1, electricity rates in New Jersey are expected to rise by as much as 20%, creating financial pressure for energy-intensive businesses like cannabis cultivators, processors, and retailers.
With impending price spikes just around the corner, now is the time to evaluate your costs and energy strategy.
Why Are Rates Increasing?
Each February, New Jersey conducts an energy auction to set wholesale electricity prices for customers who have not selected an alternate supplier. This year’s auction results mean significantly higher utility bills, just as seasonal demand for electricity peaks.
Why This Matters to Cannabis Businesses
Cannabis operations are among the most energy-intensive in the commercial sector. Indoor commercial cannabis production can amount to 2,000 to 3,000 kilowatt hours of electricity per pound of product. With such high energy demands, a 20% increase in electricity rates could significantly strain your bottom line—especially if you’re still paying the utility’s default rate. Fortunately, you are not locked in.
Act Now—Before Rates Go Up
June 1 is approaching fast, and now is the time to explore your options. As an energy broker, Sprague works on your behalf to shop the market and connect you with competitive electricity rates. We’ll help you evaluate pricing options—including fixed-rate plans—customized to suit your business’s size and energy needs. The process is simple, and we manage the transition for you with no disruption to your business. Now is the time to make a proactive decision that protects your margins and positions your business for sustainable growth.
About Sprague
Sprague Operating Resources LLC has been a trusted energy supplier since 1870. As an NJCBA partner, we are committed to supporting cannabis operators across New Jersey with energy solutions that are reliable, cost-effective, and tailored to the unique demands of this fast-growing industry.
Schedule Your Free Energy Consultation Today
Phone: 908.216.3533
Email: racciavatti@spragueenergy.com
Website: https://www.spragueenergy.com/
Connect with Rich: https://www.linkedin.com/in/richacciavattispragueenergy/
