PSE&G Electricity Rates 2026: How to Cut 11% Off Your Supply Charge

As of June 2026, the default supply rate for PSE&G customers sits near 19.9¢/kWh. The lowest competitive third-party supplier offer runs about 17.6¢/kWh. That gap is 2.3¢ on every kilowatt-hour, or roughly 11% off the supply portion of your bill.

For a household using 1,000 kWh a month, that 2.3¢ works out to about $23 a month. Hold it for a year and the difference is close to $276. Same poles, same wires, same meter reader. The only thing that changes is the company selling you the electrons.

One caveat worth saying up front: this saves money on supply only. Delivery does not move. More on why that matters in a second.

Public Service Electric & Gas (PSE&G) is New Jersey's largest electric utility. Every bill it sends breaks into two parts.

The first part is delivery. That covers the wires, transformers, and crews that bring power to your house. The New Jersey Board of Public Utilities (NJBPU) sets those charges, and PSE&G always handles delivery no matter who supplies your power. You cannot shop it, switch it, or lower it by changing suppliers.

The second part is supply, also called generation. This is the cost of the electricity itself. By default, PSE&G buys that power for you through Basic Generation Service (BGS) and passes the cost straight through. But New Jersey law lets you buy supply from a licensed third-party supplier instead. That is the half you can shop.

Basic Generation Service is the default supply you get if you never make a choice. As of June 2026, BGS for PSE&G residential customers runs about 19.9¢/kWh.

BGS is not a rate PSE&G invents. It comes out of the statewide NJ BGS auction, where suppliers bid to provide default power to New Jersey utility customers. The result of that auction sets the rate, and it resets every February 1. So the 19.9¢ figure holds through the current cycle, then re-prices at the next auction.

Because BGS is a pass-through, PSE&G earns no markup on it. That sounds consumer-friendly, and it is fair. But fair is not the same as cheap. A competitive supplier willing to lock a lower number can beat the default, which is exactly what the 17.6¢ offer does.

Here is the supply cost at three usage levels, default against the lowest current offer. These are supply charges only. Delivery is the same either way.

At 500 kWh/month
- BGS at 19.9¢: $99.50
- Supplier at 17.6¢: $88.00
- You keep: $11.50/month

At 1,000 kWh/month
- BGS at 19.9¢: $199.00
- Supplier at 17.6¢: $176.00
- You keep: $23.00/month

At 1,500 kWh/month
- BGS at 19.9¢: $298.50
- Supplier at 17.6¢: $264.00
- You keep: $34.50/month

The more power you use, the more the 2.3¢ gap adds up. A heavy-use home in July is leaving more on the table than a small apartment in May.

Take the typical 1,000 kWh household. Switching the supply portion from 19.9¢ to 17.6¢ saves $23 a month. Over twelve months that is about $276.

Nothing about your service changes. PSE&G still reads the meter, still answers outage calls, still sends one bill. If the lights flicker in a storm, you call the same number. The supplier name on the supply line is the only difference, and the savings show up on that line.

The $276 assumes steady 1,000 kWh use. Real bills swing with the seasons, so a home that runs central air all summer would save more in the hot months and less in spring. The 2.3¢ per kWh holds steady; your usage is what moves.

Start with one number off your own bill: your supply rate, listed under generation charges. If it reads near 19.9¢/kWh, you are on the default BGS rate and have not shopped yet.

From there, compare live offers for your address. Rates move, so the 17.6¢ figure here reflects June 2026 and the next NJ BGS auction in February will reset the default baseline. Check current numbers on the PSE&G rates page at ElectricRates.org before you decide.

Switching does not interrupt service and does not require new equipment. PSE&G keeps delivering power and billing you. When you pick a supplier, read the contract length and watch for any monthly fee, since a fee can eat into a thin 2.3¢ margin at low usage.

A lower headline rate only helps if the fine print cooperates. Three things to confirm.

Is the rate fixed or variable? A fixed rate holds for the contract term. A variable rate can climb after an intro period, sometimes well past 19.9¢. The 17.6¢ offer is worth shopping precisely because it beats the default; a variable plan that drifts higher does not.

Is there a monthly or cancellation fee? At 500 kWh, the supply savings are about $11.50 a month. A $5 monthly fee cuts that in half. Read the terms.

When does it renew? Some contracts roll to a higher rate at term end. Mark the date so you can re-shop, the same way you would re-check after each February BGS reset.

If the supply line on your bill is already below 17.6¢, you are ahead of the default and may not need to move. If it reads 19.9¢, the math above is the case for shopping it.