NJ Electric Rates: Beat BGS with the Right Supplier

Maria in Montclair opened her PSE&G bill in June and did a double-take. Her supply charge alone was nearly $180 for the month. Her neighbor, same street, roughly the same square footage, paid about $30 less because she had switched her electricity supplier two years ago and never looked back.

That gap is not an accident. It is the direct result of New Jersey's deregulated electricity market, where the Basic Generation Service (BGS) rate set by your utility is not always the cheapest option available. Sometimes it is. Sometimes it isn't. Knowing the difference, by utility, is the whole ballgame.

New Jersey deregulated its electricity market so that customers could choose who generates their power. Your utility (PSE&G, JCP&L, Atlantic City Electric, or Rockland Electric) still owns the wires and delivers electricity to your home. That part does not change and is not subject to competition.

What you can choose is your electricity supplier, the company that generates or procures the actual power. If you do nothing, your utility supplies power at the BGS rate, which is reviewed and approved by the NJ Board of Public Utilities (NJBPU). If you shop, you can sign a contract with a competitive supplier at a potentially lower rate.

The NJBPU oversees the competitive market and maintains consumer protections. Before signing any supplier contract, it is worth reviewing the NJBPU's guidance at nj.gov/bpu. You can also compare live supplier offers at ElectricRates.org's New Jersey page.

The BGS rate is not one number statewide. Each utility has its own rate, set through a competitive auction process overseen by the NJBPU. As of June 2026, here is where things stand.

PSE&G: BGS supply is approximately 19.9 cents per kWh. The lowest competitive supplier offer currently runs around 17.6 cents per kWh, a difference of roughly 11% on the supply portion of your bill. For a household using 800 kWh a month, that gap translates to a meaningful reduction every month.

Atlantic City Electric: BGS is approximately 18.2 cents per kWh. The lowest supplier offer is around 16.7 cents per kWh, about an 8% savings on supply. Customers in South Jersey have a real opportunity here.

JCP&L: BGS is approximately 14.6 cents per kWh. The lowest competitive supplier offers are around 16.0 cents per kWh, which is actually higher than the default. Switching would cost JCP&L customers more, not less. Staying on BGS is the right call right now.

Rockland Electric: BGS is approximately 18.8 cents per kWh. The lowest supplier offer is around 18.9 cents per kWh, essentially no savings, and very few suppliers even participate in this territory. Rockland customers should stay on BGS until the market changes.

These figures are supply-only. Delivery charges, taxes, and other fees are set by your utility and are the same regardless of which supplier you choose.

The honest answer is: it depends on your utility territory.

PSE&G customers have the clearest case for shopping right now. An 11% reduction on the supply portion of your bill is significant, especially during high-usage summer months. Because supply typically represents roughly half of a total electric bill, that 11% on supply works out to a noticeable total-bill reduction.

Atlantic City Electric customers also have a solid reason to shop. Eight percent savings on supply is real money over a year, particularly for households with higher-than-average usage.

JCP&L and Rockland Electric customers should hold off. The math simply does not work in their favor as of June 2026. Switching would mean paying more. Check back periodically, because BGS rates and supplier pricing both shift over time.

For anyone unsure where to start, ElectricRates.org's New Jersey rate comparison tool shows live supplier offers sorted by your utility territory.

Switching suppliers in New Jersey is legal, regulated, and reversible. But a few things deserve attention before you sign anything.

Rate type matters. Fixed rates lock in a cents-per-kWh price for the contract term, which gives you predictability. Variable rates can start low and move up or down with the market. In a rising-rate environment, a fixed rate is usually the safer choice.

Contract length and cancellation terms. Some suppliers offer month-to-month plans with no penalty for leaving. Others have contracts of 12 months or longer with early termination fees. Read the terms before committing.

Introductory pricing. Some offers look attractive in month one and then reset to a higher variable rate. Make sure you understand what the rate is after any promotional period ends.

Supplier licensing. Only suppliers licensed by the NJBPU are permitted to sell electricity in New Jersey. You can verify a supplier's license status at nj.gov/bpu.

The NJBPU also operates a complaint process if a supplier acts improperly. New Jersey's consumer protections in the competitive market are among the more structured in the country.

Savings on electricity are not only available through supplier competition. New Jersey has two major programs that can reduce electric costs for qualifying households.

The Universal Service Fund (USF) helps low-income customers afford their utility bills by capping the percentage of income a household spends on energy. Eligibility and benefit levels are income-based. Contact your utility or visit the NJBPU website for details on current thresholds.

LIHEAP (Low Income Home Energy Assistance Program) provides federal heating and, in some cases, cooling assistance to eligible households. Applications are typically handled through county social services agencies in New Jersey.

Both programs operate independently of the competitive supplier market. A customer can participate in USF or LIHEAP while still choosing a competitive supplier. For current eligibility requirements and application information, contact the NJBPU or your county social services office directly, since thresholds and funding levels change annually.

Before comparing supplier offers, pull your most recent electric bill and find two things: your current supply rate (listed as BGS or Generation charge, in cents per kWh) and your average monthly usage in kWh.

Your usage history is also available through your utility's online account portal, and many utilities show 12 months of history. This matters because supplier offers are priced per kWh, so your usage determines how much a rate difference actually affects your bill.

Once you have those two numbers, comparing supplier offers is straightforward. Subtract the supplier's rate from your current BGS rate, multiply by your monthly kWh, and you have a rough monthly savings estimate. The supply charge lines on your bill are the only ones affected by switching. Delivery, distribution, and other utility charges stay exactly the same.

If you are a PSE&G or Atlantic City Electric customer, the market currently offers a genuine opportunity to reduce your electricity costs by switching suppliers. If you are on JCP&L or Rockland Electric, the BGS rate is already the best deal available as of June 2026.

Rates change, sometimes several times a year, so checking periodically is worthwhile even if switching does not make sense today.

To compare current offers for your utility territory, visit ElectricRates.org's New Jersey comparison page for live supplier pricing. For regulatory guidance, licensing verification, and consumer protections, the NJ Board of Public Utilities is the authoritative source.