Jersey City Electric Company: Rates & Suppliers Guide

A resident opening their electric bill in Journal Square or downtown Jersey City will see one name at the top: PSE&G (Public Service Electric and Gas). PSE&G is the regulated electric utility for Jersey City and most of northeastern and central New Jersey. It owns the wires, poles, and meters that deliver power to homes and businesses, and that relationship does not change regardless of who supplies the actual electricity.

PSE&G's role is set by state regulators. The New Jersey Board of Public Utilities (NJBPU) oversees PSE&G's rates, reliability standards, and customer protections. That means if a power line goes down during a storm, PSE&G is the company to call, not any third-party supplier.

New Jersey deregulated its electricity market, which means the supply side of the bill, the actual generation of electricity, is open to competition. Every residential customer in Jersey City has two layers on their electric bill:

1. Delivery charges cover the cost of moving electricity through PSE&G's grid to the home. These are regulated by the NJBPU and are the same no matter which supplier a customer chooses.

2. Supply charges cover the cost of the electricity itself. By default, customers get this from PSE&G at the Basic Generation Service (BGS) rate. Alternatively, they can choose a competitive supplier licensed by the NJBPU.

Only the supply portion is negotiable. Switching suppliers has no effect on delivery rates, billing format, or who responds during an outage. PSE&G continues to deliver the power and send the bill either way.

As of June 2026, PSE&G's BGS rate is approximately 19.9 cents per kWh for residential customers. That figure covers supply only, not delivery.

For context, that is one of the higher default supply rates among New Jersey's four investor-owned utilities. Atlantic City Electric's BGS sits around 18.2 cents, and JCP&L's is closer to 14.6 cents. PSE&G's rate reflects the mix of capacity and energy costs in its BGS procurement auction, which the NJBPU runs annually.

Rates change each June when a new BGS contract period begins. The number above reflects the current period, but Jersey City residents should check current New Jersey electricity rates or the NJBPU's website before making any decision, since both BGS and competitive supplier rates shift over time.

Right now, the answer is yes, though the savings are not dramatic. As of June 2026, the lowest-priced competitive suppliers serving PSE&G territory are offering supply rates around 17.6 cents per kWh, compared to the BGS rate of 19.9 cents. That gap of roughly 2.3 cents per kWh works out to about an 11 percent reduction on the supply portion of the bill.

For a household using 700 kWh a month, that difference translates to approximately $16 per month on supply costs alone. It is not a transformation of the budget, but it is real money over a year.

One important caveat: this window changes. There have been periods when competitive suppliers offered no advantage over BGS, and periods when BGS was cheaper. The comparison has to be made at the time of enrollment. ElectricRates.org's New Jersey page tracks live supplier offers so residents can see the current spread before committing.

Not every supplier offer is worth taking. A few things matter more than the headline rate:

Fixed vs. variable rate. A fixed rate locks in the per-kWh price for the contract term, typically six to twenty-four months. A variable rate can change month to month, sometimes dropping below BGS in mild weather and spiking well above it during peak demand periods. Fixed rates offer predictability; variable rates carry risk.

Contract length and cancellation terms. Some contracts include early termination fees. Read the contract disclosure carefully before signing. The NJBPU requires suppliers to provide a written contract summary, so ask for it if the sales representative does not offer one.

Introductory pricing. Some offers start low and step up after the first few months. The rate that matters is the one that applies for the full contract term, not the teaser.

Supplier licensing. Only suppliers licensed by the NJBPU can legally serve New Jersey customers. The NJBPU maintains a public list of licensed electric suppliers, which is worth confirming before enrolling with any company.

For households that struggle with electric bills, New Jersey offers several programs worth knowing about.

Universal Service Fund (USF). The USF caps electric and gas bills as a percentage of household income for qualifying low-income customers. Enrollment is handled through PSE&G and the NJBPU. Eligibility is income-based, so residents should contact PSE&G or the NJBPU directly for current thresholds and application details.

LIHEAP (Low Income Home Energy Assistance Program). This federally funded program provides one-time or ongoing bill assistance. In New Jersey it is administered through the state's Department of Community Affairs. Benefit amounts and application windows vary by year, so residents should check with the DCA or the NJBPU for current program availability.

PSE&G's own programs. PSE&G offers its own customer assistance options, including payment arrangements and energy efficiency programs. Customers behind on bills should call PSE&G before the account reaches shutoff status, since protections and options narrow once a shutoff notice has been issued.

A PSE&G residential bill breaks into several line items, but the two that matter most for rate comparisons are the Basic Generation Service charge (the supply component) and the delivery charges. The delivery charges include transmission, distribution, and various state-mandated surcharges. Only the BGS charge changes if a customer switches to a third-party supplier.

Some customers are surprised to find that even after switching to a cheaper supplier, total bill savings are smaller than expected. That is because delivery charges represent a significant share of the total bill. If supply is roughly half the total cost, an 11 percent reduction in supply translates to closer to 5 or 6 percent off the entire bill. The math still works in customers' favor right now given the PSE&G BGS rate, but it helps to go in with realistic expectations.

Switching is straightforward. Once a customer selects a licensed competitive supplier, the supplier handles enrollment with PSE&G. There is no service interruption, no technician visit, and no change to the meter or wiring. The first bill reflecting the new supply rate typically arrives within one to two billing cycles.

To switch:
1. Compare current supplier offers against PSE&G's BGS rate. Use ElectricRates.org or the NJBPU's supplier comparison resources to see live pricing.
2. Confirm the supplier is licensed by the NJBPU.
3. Review the contract terms, particularly the rate type, contract length, and any cancellation fees.
4. Enroll through the supplier directly. They submit the switch request to PSE&G.

If a customer wants to return to BGS at any point, they can switch back. BGS is always available as the default option.

PSE&G is the electric company for Jersey City, and that will not change. What can change is who supplies the electricity behind the scenes. As of June 2026, PSE&G's BGS rate of around 19.9 cents per kWh is high enough that competitive suppliers, with offers near 17.6 cents, offer a genuine savings opportunity on the supply portion of the bill.

That window is real but not permanent. Rates on both sides shift each year, and the best move is to compare at the moment of decision rather than assuming the gap persists. The NJBPU sets the rules that protect New Jersey customers in this market, and all licensed suppliers must follow them.

For a current side-by-side look at what Jersey City suppliers are charging right now, visit ElectricRates.org's New Jersey comparison tool before committing to any offer.