New Jersey Electricity Rates: How to Pay Less in 2026

A homeowner in Woodbridge opens her July electric bill, sees a supply charge nudging past $180, and wonders whether she has any say in what she pays. She does. New Jersey deregulated its electricity market years ago, which means residents served by PSE&G, Atlantic City Electric, JCP&L, or Rockland Electric can choose the company that generates their electricity, even if the utility still delivers it.

The catch: switching does not always save money. Whether it makes sense depends entirely on which utility serves your address and what the current numbers look like. The breakdown below covers exactly that, using rates current as of June 2026.

Your monthly bill has two main cost buckets. The first is delivery, which covers the poles, wires, and infrastructure your utility owns. That charge is set by the NJ Board of Public Utilities (NJBPU) and does not change based on who supplies your electricity.

The second is supply, which covers the actual electricity generated. If you do nothing, you pay the utility's default rate, called Basic Generation Service (BGS). BGS rates are also approved by the NJBPU and reset periodically through a competitive auction. A competitive supplier, if you choose one, replaces only that supply portion of your bill. Delivery stays with your utility regardless.

The math is simple: if a supplier's rate is lower than BGS, you save on the supply portion of your bill. If it is not lower, you are better off staying put.

PSE&G serves the largest share of New Jersey households, covering much of northern and central Jersey. As of June 2026, PSE&G's BGS rate sits at roughly 19.9 cents per kWh. The lowest rate available from a competitive supplier in PSE&G territory is approximately 17.6 cents per kWh, a difference of about 11% on the supply portion of the bill.

For a household using around 700 kWh per month, that gap translates to a meaningful reduction in monthly supply charges. The savings are real, but they apply only to supply, not delivery. Check current New Jersey supplier rates at ElectricRates.org before committing to any offer, since supplier rates change and introductory pricing can reset after the initial contract term.

Atlantic City Electric serves customers across southern New Jersey. Its BGS rate as of June 2026 is approximately 18.2 cents per kWh. The lowest competitive supplier in this territory comes in around 16.7 cents per kWh, which works out to roughly an 8% discount on supply.

That is a smaller margin than PSE&G territory, but it is still genuine. Atlantic City Electric customers who have never compared supplier offers are likely leaving money on the table. As always, read the full contract terms before switching. Variable-rate supplier plans can start low and adjust upward with market conditions, so a fixed-rate offer is often the safer comparison point.

Not every territory favors a switch. Two New Jersey utilities are clear cases where the default BGS is the better deal right now.

JCP&L (Jersey Central Power and Light), which serves much of central and western New Jersey, has a BGS rate of approximately 14.6 cents per kWh as of June 2026. The lowest competitive supplier in JCP&L territory is around 16.0 cents, meaning switching would cost JCP&L customers more, not less. BGS is cheaper, full stop.

Rockland Electric, which serves a small area in the northwest corner of the state, has a BGS of approximately 18.8 cents per kWh. The lowest available supplier rate is roughly 18.9 cents, essentially no savings. Supplier participation in Rockland Electric territory is also limited, so options are thin regardless. Customers in both territories should revisit the comparison periodically since BGS rates reset and the picture can shift.

A lower rate number is not the only thing that matters. A few questions are worth asking before signing with any competitive supplier.

Is the rate fixed or variable? Fixed rates stay the same for the contract term. Variable rates can change monthly and may rise well above BGS during high-demand periods.

How long is the contract, and what are the exit terms? Some suppliers charge an early termination fee if you want to leave before the contract ends. Others are month-to-month with no penalty.

What happens at contract end? Some suppliers automatically roll customers into a variable rate or a new fixed rate. Knowing this in advance prevents bill shock later.

Is the supplier licensed in New Jersey? The NJBPU maintains a list of licensed electric power suppliers in the state. Verifying that your chosen supplier appears on that list is a basic but important step.

Rate comparisons matter most for customers paying their full bill. But New Jersey also has programs for households that meet income eligibility requirements.

The Universal Service Fund (USF) helps lower-income New Jersey electric and gas customers with their utility bills through a credit applied directly to the account. LIHEAP (the Low Income Home Energy Assistance Program) provides seasonal energy assistance and can help with both heating and cooling costs.

Eligibility and benefit amounts for both programs depend on household income and size. The NJBPU and the NJ Department of Community Affairs administer these programs. Customers who think they might qualify should contact their utility or visit the NJBPU website for current guidance, since thresholds and funding availability can change.

The process of switching suppliers in New Jersey is straightforward. Once you pick a licensed supplier and agree to a contract, the supplier notifies your utility. Your delivery service continues without interruption. You will still receive one bill from your utility, but the supply portion will reflect your new supplier's rate.

The most important step is making sure the comparison is apples-to-apples. Supplier rates are quoted per kWh for supply only. BGS rates are also per kWh for supply only. Look at those two numbers directly. Do not factor in delivery charges, taxes, or fees when comparing supply rates, since those components are the same regardless of who supplies your electricity.

For a current, side-by-side look at what suppliers are offering in your territory, visit ElectricRates.org's New Jersey page. Rates update regularly, and the comparison tool pulls licensed supplier offers so you are not searching blind.

Where you live in New Jersey determines whether shopping for a supplier makes financial sense. As of June 2026, PSE&G and Atlantic City Electric customers have a genuine opportunity to cut supply costs by switching to the lowest available competitive rate. JCP&L and Rockland Electric customers are better served by staying on BGS for now.

The window can close or open as BGS rates reset and supplier offers change. Making a note to revisit the comparison every six to twelve months, or before a supplier contract renews, is a small habit that can add up to real savings over time.