New Jersey Electric Rates 2026: Compare BGS vs Suppliers

A family in Newark and a family in Toms River both open their electric bills, see a line item called "supply charge," and wonder the same thing: is there a cheaper option out there? The answer depends entirely on which utility serves their address. New Jersey deregulated its electricity market, meaning customers of most utilities can shop for their generation supply from licensed competitive suppliers. But deregulation does not automatically mean savings. As of June 2026, the math is genuinely favorable for some New Jersey customers and genuinely unfavorable for others. Knowing which camp you are in is the only way to make a smart decision.

The regulator overseeing New Jersey's electric market is the NJ Board of Public Utilities (NJBPU). It sets the rules for competitive suppliers, approves utility rate changes, and maintains consumer protections. The default supply product, what you get if you never shop, is called Basic Generation Service (BGS). Each of the state's four major electric utilities sets its own BGS rate, and those rates vary considerably.

Your electric bill has two major cost buckets: delivery and supply. Delivery covers the poles, wires, transformers, and metering that physically move electricity to your home. That portion always stays with your utility and is not subject to shopping. Supply is the cost of the electricity itself, the commodity generated at power plants. BGS is the utility's default supply rate, procured through periodic auctions overseen by the NJBPU.

When you switch to a competitive supplier, you are replacing only the supply portion. Your utility still delivers the power, still handles outages, and still sends the bill in most cases. A supplier cannot charge you more for delivery, and a switch does not affect your reliability. The only question is whether the supplier's per-kilowatt-hour supply price beats your utility's BGS rate. Right now, that question has four very different answers depending on your utility.

Public Service Electric and Gas (PSE&G) serves a large swath of northern and central New Jersey, including most of Essex, Union, Hudson, and Middlesex counties. As of June 2026, PSE&G's BGS rate sits at approximately 19.9 cents per kilowatt-hour for supply.

The lowest-priced competitive supplier available to PSE&G customers is currently around 17.6 cents per kilowatt-hour, a difference of roughly 11% on the supply portion of the bill. For a household using 700 kWh per month, that gap translates to a meaningful reduction in monthly costs. PSE&G customers who have not compared rates recently have the most to gain from doing so.

That said, supplier rates change. An offer that beats BGS today might not beat it next quarter. Always verify current rates at ElectricRates.org's New Jersey page before signing anything.

Atlantic City Electric serves customers across southern New Jersey, including Atlantic, Cape May, Cumberland, and parts of Burlington and Camden counties. Its BGS rate as of June 2026 is approximately 18.2 cents per kilowatt-hour.

The lowest competitive supplier rate for ACE customers is around 16.7 cents per kilowatt-hour, representing roughly an 8% savings on supply. That is a real opportunity, though smaller than what PSE&G customers can find. A household averaging 800 kWh per month would see a noticeable difference on the supply line of the bill.

One caution: some suppliers market variable-rate plans aggressively in ACE territory. Variable rates can start low and spike significantly, especially in summer months when regional wholesale prices climb. Fixed-rate contracts tied to a specific per-kilowatt-hour price offer more predictability. Check the contract term, the rate type, and any early termination fees before enrolling.

Jersey Central Power and Light (JCP&L) covers a broad territory including Ocean, Monmouth, Morris, Warren, and parts of Hunterdon and Somerset counties. As of June 2026, JCP&L's BGS rate is approximately 14.6 cents per kilowatt-hour, which is the lowest of any of the four major New Jersey utilities.

Here is the important part: the lowest competitive supplier available to JCP&L customers is currently around 16.0 cents per kilowatt-hour. That means switching suppliers would cost JCP&L customers more, not less. For this group, the right move is to stay on BGS and avoid any supplier solicitations, regardless of how compelling the marketing sounds.

JCP&L customers who are already locked into a supplier contract above 14.6 cents should note their contract end date and plan to return to BGS when it expires, unless market conditions change. Check ElectricRates.org for updated comparisons as rates shift throughout the year.

Rockland Electric serves a small portion of northwestern New Jersey, primarily in Bergen County near the New York border. It is the smallest of New Jersey's four major utilities by customer count. As of June 2026, Rockland's BGS rate is approximately 18.8 cents per kilowatt-hour.

Very few competitive suppliers have filed offers for Rockland Electric territory, and the lowest available is around 18.9 cents per kilowatt-hour, essentially the same as BGS with no meaningful savings. The thin supplier market in Rockland territory means customers there have limited options. Staying on BGS is the practical choice for now, though that could change if more suppliers enter the market.

Whether you are a PSE&G or Atlantic City Electric customer where shopping can pay off, a few contract details matter more than the headline rate.

Rate type. A fixed rate locks in your supply price for the contract term. A variable rate can move monthly based on market conditions. Variable rates are rarely beneficial for residential customers over a full year.

Contract length. Shorter terms, typically six to twelve months, give you flexibility to re-shop when the market shifts. Longer terms lock in today's rate but may include early termination fees if you need to exit.

Early termination fees. These can wipe out months of savings if you move, switch utilities, or find a better deal mid-contract. Read the fine print before signing.

Introductory pricing. Some suppliers offer a low teaser rate for the first one or two months, then reset to a higher rate. Confirm the rate that applies after any promotional period.

The NJBPU maintains a list of licensed electric suppliers in New Jersey. Purchasing supply from an unlicensed entity is not permitted, and working with a licensed supplier gives you access to NJBPU's consumer complaint process if problems arise.

Rate comparison is not the only way New Jersey households can lower their electric costs. Two major programs help income-qualifying customers regardless of which utility serves them.

Universal Service Fund (USF). New Jersey's USF program caps electric and gas bills as a percentage of household income for qualifying low-income customers. It is administered through the utilities under NJBPU oversight. Eligibility and benefit amounts are based on income relative to federal poverty guidelines. The NJBPU website has current enrollment information.

LIHEAP (Low Income Home Energy Assistance Program). The federal LIHEAP program provides seasonal energy bill assistance to income-qualifying households. In New Jersey, the program is administered through the Department of Community Affairs. Benefits can be applied to electric bills and are typically available during the heating season, though cooling assistance may also be available.

For the most current eligibility thresholds and application periods, contact the NJ Board of Public Utilities directly or visit the New Jersey Department of Community Affairs website. Benefit amounts and income limits are set annually and can change.

The clearest path is straightforward. Pull out a recent electric bill and find the supply or generation charge line, stated in cents per kilowatt-hour. That is your current BGS rate. Then look up current competitive supplier offers for your utility territory.

For PSE&G and Atlantic City Electric customers, where a gap currently exists, look for fixed-rate offers from NJBPU-licensed suppliers. Match the contract term to how long you plan to stay in your current home. Calculate the monthly savings based on your actual average usage, not a hypothetical usage figure the supplier provides.

For JCP&L and Rockland Electric customers, the calculation is already done. BGS wins at current rates. Save the comparison exercise for a future date when rates shift.

ElectricRates.org updates supplier offer data regularly. Visit the New Jersey electric rates page to see current BGS rates alongside available supplier offers for your utility, all in one place. Rates as of June 2026 are reflected in this article, but supply markets move, so always confirm before making any switch.