New Jersey Electricity Rates 2026: Compare BGS vs Suppliers

A homeowner in Linden switched electricity suppliers two years ago after a door-to-door salesperson promised savings. Last winter, she noticed her supply charge had crept up while her neighbor, still on PSE&G's default rate, was paying less per kilowatt-hour. She called her supplier, found she was locked into a variable rate, and ended up paying a cancellation fee to get out.

Her story is common in New Jersey, and it has a simple explanation: the math on switching depends entirely on which utility serves your address, and which direction the rate gap runs at any given moment. This guide breaks down exactly where things stand as of June 2026, utility by utility, so you can make the call with real numbers in hand.

For live, up-to-date comparisons across all New Jersey suppliers, visit ElectricRates.org's New Jersey page.

New Jersey deregulated its electricity market in the late 1990s, which means customers can choose who generates their electricity even though the wires delivering it always belong to the local utility. The NJ Board of Public Utilities (NJBPU) oversees both the utilities and the competitive supply market.

Every bill has two main components. The first is the delivery charge, which covers the poles, wires, transformers, and metering that bring power to your home. That charge is set by the NJBPU and you cannot shop it away. The second is the supply charge, which covers the electricity itself. If you do nothing, your utility supplies that power at its regulated Basic Generation Service (BGS) rate. If you sign with a third-party supplier, that supplier's rate replaces the BGS rate on your bill.

Savings from shopping only apply to the supply portion. Delivery charges stay exactly the same regardless of which supplier you use.

Public Service Electric and Gas serves the largest share of New Jersey residents, covering much of northeastern and central NJ including Newark, Jersey City, and Trenton.

As of June 2026, PSE&G's BGS rate sits at approximately 19.9 cents per kWh for supply. The lowest competitive supplier rate available to PSE&G customers is around 17.6 cents per kWh, a difference of roughly 11 percent on the supply portion of the bill.

That gap is meaningful. A household using 700 kWh per month would save roughly the equivalent of a few dollars each month on supply alone, and the savings scale upward for higher-usage homes. PSE&G customers are currently the best-positioned in New Jersey to benefit from shopping the competitive market.

A few caveats apply. Fixed-rate offers lock in savings for the term of the contract. Variable-rate offers can drift above the BGS rate at any time, so they carry more risk. Always confirm the contract length, any cancellation fees, and whether the rate is fixed or variable before signing.

Atlantic City Electric serves South Jersey, including Atlantic City, Cherry Hill, and the Jersey Shore region.

As of June 2026, Atlantic City Electric's BGS rate is approximately 18.2 cents per kWh. The lowest competitive supplier rate available in that territory is around 16.7 cents per kWh, which works out to roughly 8 percent in supply savings.

That is a smaller gap than in PSE&G territory, but still worth pursuing for customers willing to spend a few minutes comparing offers. The same rules apply: a fixed-rate contract is the only way to lock in that spread and protect against a supplier raising rates mid-term.

Check ElectricRates.org's New Jersey comparison tool to see current Atlantic City Electric supplier offers side by side.

Jersey Central Power and Light serves parts of central and northern New Jersey, including Morristown, Toms River, and Asbury Park.

As of June 2026, JCP&L's BGS rate is approximately 14.6 cents per kWh. The lowest competitive supplier rate in JCP&L territory is around 16.0 cents per kWh. That means shopping the market would actually cost JCP&L customers more, not less.

If you are a JCP&L customer currently on a third-party supplier contract, it is worth checking whether your rate beats 14.6 cents. If it does not, you can return to BGS. Utilities are required under NJBPU rules to take customers back onto default service, though the timing may depend on your contract's cancellation terms.

For JCP&L customers, the smart move right now is to stay put or return to BGS.

Rockland Electric serves a small portion of northwestern New Jersey, near the New York border.

As of June 2026, Rockland Electric's BGS rate is approximately 18.8 cents per kWh. Competitive supplier availability in this territory is thin, and the lowest offer found is around 18.9 cents per kWh. That is essentially no savings, and factoring in any supplier fees or variable-rate risk tips the balance further toward staying on BGS.

Rockland Electric customers should monitor the market periodically since supplier offers can change, but as of mid-2026 there is no compelling financial reason to switch.

Switching suppliers is not the only way to reduce an electricity bill in New Jersey. Two programs in particular can have a much larger impact for eligible households than any rate comparison.

LIHEAP (Low Income Home Energy Assistance Program) provides federally funded assistance with heating and cooling costs. Eligibility is based on household income and size. Applications are handled through county welfare agencies in New Jersey.

USF (Universal Service Fund) is a New Jersey-specific program that caps energy costs as a percentage of income for qualifying low-income households. The NJBPU administers USF, and it applies regardless of whether you are on BGS or a competitive supplier.

For current eligibility thresholds, benefit amounts, and application details for either program, contact the NJBPU directly or visit the NJ Department of Community Affairs. Benefit amounts and income limits are adjusted periodically, so this post does not quote specific figures.

New Jersey's competitive market has a solid track record of producing real savings, but there are enough bad actors that a few ground rules help.

First, always ask for the rate in cents per kWh, total, with no separate fees folded in later. Some suppliers quote a low energy rate but add monthly service charges that eliminate the savings.

Second, confirm whether the rate is fixed for the full contract term. A fixed rate means your supply cost stays put even if market prices rise. A variable rate can go higher than BGS within weeks of signing.

Third, check the cancellation fee before signing. If your circumstances change or a better offer appears, you want to know the cost of getting out.

Fourth, verify the supplier is licensed by the NJBPU. The NJBPU maintains a list of licensed electric suppliers, which is the authoritative source for confirming legitimacy.

Finally, use ElectricRates.org to filter offers by utility territory and contract type so you are only comparing apples to apples.

As of June 2026, the picture in New Jersey is uneven. PSE&G customers have the clearest opportunity to save by switching, with an 11 percent gap between BGS and the lowest competitive offer. Atlantic City Electric customers have a smaller but real 8 percent gap. JCP&L and Rockland Electric customers are better served by staying on BGS, since no competitive offer currently beats their default rate.

Those numbers will shift as BGS rates reset and suppliers update their offers. Checking rates once or twice a year, especially before a contract renews, is the simplest habit that keeps a household on the right side of the comparison.

All current supplier offers for every New Jersey utility territory are available at ElectricRates.org, updated as rates change.