New Jersey Electricity Rates 2026: Compare & Save

Two houses on the same street in Montclair. One is served by PSE&G, the other just across the border in a JCP&L service territory. The PSE&G customer switched to a competitive supplier last spring and cut her supply bill noticeably. Her neighbor did the same thing and ended up paying more every month.

That gap is not a fluke. It comes down to how each utility's Basic Generation Service (BGS) rate compares to what competitive suppliers are actually offering right now. In New Jersey, those numbers are very different depending on which of the four investor-owned utilities serves your address. This post breaks down each one so you can make a decision based on real numbers, not a sales pitch.

New Jersey deregulated its retail electricity market, which means residential customers can choose a third-party supplier for the generation portion of their bill while still receiving delivery service from their local utility. The NJ Board of Public Utilities (NJBPU) oversees the market, sets rules for supplier conduct, and requires utilities to offer a default supply rate called the Basic Generation Service (BGS) for customers who do not choose a competitive supplier.

Your monthly bill has two main components: the supply charge (the cost of the electricity itself, where competition applies) and the delivery charge (the cost of moving that electricity through poles and wires to your home, which always goes to your utility and is not negotiable). When people talk about switching suppliers, they are only ever affecting the supply side. Delivery charges stay the same no matter who sells you electricity.

The BGS rate changes periodically based on how the utility procures power through competitive auctions. Whether the current BGS rate is a good deal depends entirely on what suppliers are bidding against it at any given moment. Right now, the picture varies a lot across New Jersey's four utilities.

PSE&G serves roughly 2.3 million electric customers across northern and central New Jersey, making it the state's largest electric utility. As of June 2026, the PSE&G BGS supply rate sits at approximately 19.9 cents per kWh. The lowest competitive supplier rate available in PSE&G territory is around 17.6 cents per kWh, a difference of about 11% on the supply portion of the bill.

For a household using 700 kWh per month, that gap translates to a meaningful reduction in the supply line item each month. The savings are real, but a few caveats apply. First, variable-rate supplier contracts can move above the BGS rate when energy prices spike, so a fixed-rate plan is generally safer for budgeters. Second, always check the full contract terms, including any cancellation fees, before signing. The NJBPU maintains a list of licensed suppliers at nj.gov/bpu, or you can compare current offers at ElectricRates.org's New Jersey page.

Atlantic City Electric serves customers in South Jersey, including Atlantic, Cape May, Cumberland, and parts of several neighboring counties. Its BGS rate as of June 2026 is approximately 18.2 cents per kWh. The lowest available competitive supplier rate in this territory comes in around 16.7 cents per kWh, a savings potential of roughly 8% on supply.

That is a smaller margin than PSE&G territory, but it is still a genuine opportunity for customers who take the time to shop. As with any supplier offer, the key is to compare apples to apples: look at the per-kWh rate, whether it is fixed or variable, the contract length, and any fees. A supplier offering 16.7 cents on a fixed 12-month contract is a different proposition than one offering 16.5 cents on a month-to-month variable plan that could jump to 22 cents by February.

Jersey Central Power and Light (JCP&L) serves a wide swath of central and northern New Jersey. As of June 2026, the JCP&L BGS rate is approximately 14.6 cents per kWh. The lowest competitive supplier offer in JCP&L territory is around 16.0 cents per kWh, which is higher than the default rate.

For JCP&L customers, switching to a competitive supplier right now would mean paying more, not less. There is no savings opportunity on supply at current market rates. That could change as BGS rates reset and market conditions shift, so it is worth checking back periodically. For live rate comparisons, see ElectricRates.org's New Jersey page.

This is exactly the kind of situation the BGS system is designed to handle. When the utility's procured rate is competitive, customers benefit from staying put. The NJBPU's oversight of the BGS auction process is meant to ensure that the default rate reflects real market conditions.

Rockland Electric serves a small number of customers in the northern tip of New Jersey, primarily in Bergen and Passaic counties near the New York border. As of June 2026, the Rockland Electric BGS rate is approximately 18.8 cents per kWh. Very few competitive supplier offers exist for this territory, and the lowest available is around 18.9 cents per kWh, essentially the same as BGS with essentially no savings potential.

The limited number of supplier offers in Rockland Electric territory reflects the small size of the customer base. Competition works best at scale, and Rockland Electric's footprint is too small to attract many bidders. Customers in this territory should remain on BGS for now and check back when market conditions change.

Understanding which part of your bill is negotiable makes a big difference. A typical New Jersey electric bill from any of the four utilities will show at minimum:

Supply charges: These reflect the BGS rate (or your chosen supplier's rate) multiplied by your usage in kWh. This is the only component affected by switching suppliers.

Delivery charges: These cover the cost of maintaining the grid and delivering power to your home. They are set by the utility and approved by the NJBPU. They do not change if you switch suppliers.

Transmission charges: Part of delivery, covering the high-voltage lines that carry power from generators to local distribution networks.

Taxes and fees: State and local taxes, the Societal Benefits Charge (which funds programs like the Universal Service Fund for low-income customers), and other regulatory fees.

When a supplier quotes you a rate, confirm whether it covers supply only or whether it bundles in any other charges. Most competitive rates apply to supply only, and delivery charges will continue to appear on your bill from your utility.

Rate shopping is not the only way to lower an electricity bill. New Jersey has several assistance programs for qualifying households.

Universal Service Fund (USF): A state-run program that reduces the electric bills of low-income New Jersey residents by capping the percentage of household income spent on electricity. Administered through the utilities under NJBPU oversight.

LIHEAP (Low Income Home Energy Assistance Program): A federally funded program that helps eligible households cover heating and, in some cases, cooling costs. Applications in New Jersey are handled through county agencies.

Lifeline Credit Program: Provides a credit on utility bills for eligible seniors and disabled residents.

For eligibility details and application information on any of these programs, contact the NJBPU or your utility directly. Eligibility thresholds and benefit amounts are set by program administrators and can change, so check current guidelines rather than relying on any third-party summary.

Switching electricity suppliers in New Jersey does not involve any change to your physical service. The lights stay on, your utility still handles outages and emergencies, and delivery continues as normal. The only thing that changes is who supplies the electricity and what you pay per kWh for that supply.

A few steps to take before switching:

1. Find your current BGS rate. It appears on your utility bill or on your utility's website. The figures in this article are as of June 2026 and will change over time.

2. Compare supplier offers side by side. Look at fixed-rate plans rather than variable-rate plans if price stability matters to you. Check contract length and any early termination fees.

3. Verify the supplier is licensed in New Jersey. The NJBPU maintains a list of licensed electric power suppliers at nj.gov/bpu. Do not sign with any supplier that is not on that list.

4. Do the math for your territory. As shown above, a switch makes financial sense for PSE&G and Atlantic City Electric customers today, but not for JCP&L or Rockland Electric customers. The territory you are in matters as much as the offer itself.

For current rates and a side-by-side comparison of licensed suppliers in your area, visit the New Jersey section of ElectricRates.org.