Reading Your NJ Electric Bill Explained

A homeowner in Montclair opens her electric bill and counts eleven separate line items. She pays it every month, but she has no idea what half of them mean or whether she is overpaying. She is not alone. New Jersey electric bills are among the more itemized in the country, partly because the state deregulated its electricity market, which means customers can choose who generates their power even if they can never choose who delivers it.

This guide walks through every major section of a New Jersey electric bill, explains the difference between supply and delivery, covers what Basic Generation Service (BGS) means, and shows you which utilities are worth shopping around on right now. For live rate comparisons, visit ElectricRates.org's New Jersey page.

Every New Jersey electric bill is divided into two fundamental categories.

Supply charges cover the cost of the electricity itself, the electrons generated at a power plant somewhere on the grid. This is the portion you can shop for. If you are on your utility's default plan, you are paying Basic Generation Service (BGS) rates. If you have signed up with a third-party competitive supplier, you are paying that supplier's rate instead.

Delivery charges cover everything required to physically move electricity from the grid to your home: transmission lines, local distribution infrastructure, metering, and the utility's operating costs. Delivery charges are regulated by the NJ Board of Public Utilities (NJBPU) and are the same regardless of which supplier you use. You cannot shop delivery charges.

The practical takeaway: when you compare supplier offers, you are only comparing the supply portion of your bill. Delivery stays fixed.

If you have never switched suppliers, you are on Basic Generation Service. BGS is the default electricity supply that your utility provides when no competitive supplier has been chosen. The NJBPU oversees the BGS procurement process, in which utilities hold competitive auctions to set the rate customers pay.

BGS rates change periodically based on those auctions, so what you paid two years ago is likely different from what you pay today. The rate appears on your bill as a per-kilowatt-hour (cents/kWh) charge under the supply section.

BGS is not inherently bad. In some cases, particularly for JCP&L customers, BGS is currently the cheapest option available. In others, like PSE&G, competitive suppliers beat it by a meaningful margin. The answer depends entirely on your utility and current market conditions.

New Jersey has four electric utilities, each with its own BGS rate and its own competitive supplier landscape. Here is where things stand as of June 2026.

PSE&G serves the largest share of New Jersey customers, covering much of northern and central New Jersey. Its BGS supply rate is approximately 19.9 cents/kWh. The lowest competitive supplier rate available is around 17.6 cents/kWh, representing roughly an 11% savings on the supply portion of the bill. For a typical household using 700 kWh per month, that gap is real money over a full year.

Atlantic City Electric serves southern New Jersey. Its BGS rate sits at approximately 18.2 cents/kWh, while the lowest supplier offers come in near 16.7 cents/kWh, about an 8% savings on supply. Shopping is worth the ten minutes it takes.

JCP&L covers portions of central and northern New Jersey. Its BGS rate is approximately 14.6 cents/kWh, and the lowest competitive supplier rates are around 16.0 cents/kWh. That means BGS is currently cheaper. JCP&L customers should stay on default supply and revisit periodically as market conditions shift.

Rockland Electric serves a small area in the northwest corner of the state. Its BGS rate is approximately 18.8 cents/kWh, and very few competitive suppliers serve the territory. The lowest offer found is around 18.9 cents/kWh, essentially no savings. Rockland customers are best served by staying on BGS for now.

For updated numbers, check ElectricRates.org's New Jersey rate tool, which tracks live supplier offers.

Beyond the headline supply and delivery split, NJ electric bills include several smaller charges that often cause confusion.

Transmission Charge: Pays for high-voltage lines that carry bulk power across the regional grid. This is a delivery charge set at the federal level and passed through by your utility.

Distribution Charge: Covers the local poles, wires, and transformers that bring power to your neighborhood and home. This is where much of the utility's infrastructure investment shows up.

Societal Benefits Charge (SBC): New Jersey funds various energy efficiency and renewable energy programs through this line item. The NJBPU sets the rate.

Market Transition Charge / Stranded Cost Recovery: A legacy charge from deregulation, still appearing on some bills, that helps utilities recover costs from the transition away from regulated generation.

Sales Tax: New Jersey applies sales tax to electricity. It appears as a percentage of the taxable charges on your bill.

Demand Charge (commercial/some residential): Some accounts, particularly small commercial, are billed partly on peak demand in kilowatts rather than just consumption in kilowatt-hours. Most residential customers do not see this.

If a line item on your specific bill is not covered here, your utility's website has a full rate schedule, and the NJBPU maintains tariff filings for each utility.

When shopping for a competitive electricity supplier in New Jersey, you will encounter two basic contract structures.

A fixed-rate plan locks your supply rate for a defined period, often six to twenty-four months. Your supply cost per kilowatt-hour does not change during that window, regardless of what happens to wholesale energy markets. This provides budget predictability.

A variable-rate plan adjusts monthly based on market conditions. It can be lower than a fixed rate in a falling market, but it can also spike. Many consumer complaints filed with the NJBPU involve customers who signed up for a low introductory variable rate that rose sharply after the promotional period ended.

Before signing with any supplier, read the contract carefully: look at the rate, the contract length, any cancellation fees, and what happens when the term expires. The NJBPU requires licensed suppliers to disclose these terms clearly.

Supply shopping addresses only part of the bill. For households with lower incomes, New Jersey offers programs that reduce the total electric cost more substantially.

Universal Service Fund (USF): A New Jersey program that reduces the electric bills of income-qualified customers. Eligibility and benefit amounts are set by the NJBPU. Customers apply through their utility or through NJ 2-1-1.

LIHEAP (Low Income Home Energy Assistance Program): A federally funded program that provides heating and, in some cases, cooling assistance. New Jersey administers it through the Department of Community Affairs. Benefits can offset a portion of electric costs for qualifying households.

Lifeline Credit: A New Jersey program providing a credit on utility bills for low-income seniors and disabled residents.

For eligibility details and current benefit levels, contact the NJ Board of Public Utilities or call NJ 2-1-1. Rates and thresholds are set by regulators and change periodically, so verify current figures through official channels rather than relying on any single source.

Shopping for electricity supply in New Jersey does not require a specialist. A few steps cover most of what you need.

First, find your current supply rate. It is on your bill under the supply section, listed as a cents/kWh figure. Note whether it is BGS or a competitive supplier rate.

Second, gather your annual usage. Most bills show a twelve-month usage history, or you can log into your utility's online portal. Average monthly kilowatt-hours gives you a useful baseline for comparing offers.

Third, compare supplier offers on an apples-to-apples basis. Look at the all-in supply rate, the contract term, and any fees. Introductory rates that expire after a few months deserve extra scrutiny.

Fourth, confirm the supplier is licensed. The NJBPU maintains a list of licensed third-party suppliers on its website. Never give payment information to an unlicensed solicitor.

ElectricRates.org aggregates current supplier offers by zip code so you can see what is available in your area without calling multiple companies.

A New Jersey electric bill is more legible than it first appears once you understand the supply-versus-delivery split. Delivery charges are fixed and regulated. Supply charges are the variable you can control.

As of June 2026, PSE&G and Atlantic City Electric customers have meaningful opportunities to save by switching to a competitive supplier. JCP&L and Rockland Electric customers are better off staying on BGS for now, but that calculus shifts as markets move. Check rates before any long-term commitment, and revisit annually.

The NJBPU is the right place to research your rights as a customer and to verify supplier licenses. ElectricRates.org is a fast way to see live offers side by side before you decide.