New Jersey Electricity Rates: What to Know in 2026

A homeowner in Montclair opens her June electric bill, notices the supply charge, and wonders if she is paying more than she has to. She is probably right to wonder. New Jersey has had retail electric choice since the late 1990s, which means most customers can pick a competitive electricity supplier instead of staying on their utility's default supply. But whether switching actually saves money depends entirely on which utility serves your address and what suppliers are offering right now.

This guide breaks down the current rate picture across all four New Jersey electric utilities, explains how the system works, and tells you exactly where to look for verified, up-to-date numbers.

New Jersey's electric market is overseen by the New Jersey Board of Public Utilities (NJBPU), the state agency that sets the rules for both utilities and competitive suppliers. Your bill has two main pieces: delivery and supply. Delivery, which covers the poles, wires, and local infrastructure, stays with your utility no matter what. Supply is where choice comes in.

If you do nothing, your utility provides supply through Basic Generation Service (BGS). BGS rates are set through a competitive auction process administered under NJBPU oversight, and they reset periodically. Competitive suppliers, called Third-Party Suppliers (TPS), must be licensed by the NJBPU to operate in New Jersey and must provide a clear contract before you switch.

The four investor-owned utilities serving New Jersey residential customers are PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric. Each runs its own BGS, so the math on switching is different for every customer.

Here is where the numbers get specific. The figures below are supply-only rates (cents per kWh) as of June 2026. Delivery charges are separate and do not change based on your supplier choice.

PSE&G: BGS is approximately 19.9 cents/kWh. The lowest competitive supplier rate available is approximately 17.6 cents/kWh, which works out to roughly an 11% savings on the supply portion of the bill. For a household using 700 kWh per month, that difference is real and worth acting on. PSE&G customers have a meaningful opportunity right now.

Atlantic City Electric: BGS sits at approximately 18.2 cents/kWh. The lowest competitive supplier is around 16.7 cents/kWh, about an 8% savings on supply. Solid but smaller than the PSE&G gap.

JCP&L: BGS is approximately 14.6 cents/kWh. The lowest competitive supplier rate is approximately 16.0 cents/kWh. That means switching would cost JCP&L customers more, not less. Stay on BGS.

Rockland Electric: BGS is approximately 18.8 cents/kWh. The competitive market here is thin, with the lowest supplier coming in around 18.9 cents/kWh. No meaningful savings, and very few offers to choose from.

For live rates updated in real time, visit ElectricRates.org's New Jersey comparison page.

The table above makes the answer fairly clean. PSE&G customers, particularly those in the northern and central parts of the state with higher monthly usage, have the most to gain from shopping. Atlantic City Electric customers in the southern counties have a smaller but still real savings window.

JCP&L and Rockland Electric customers should stay put for now. BGS is the better deal at current rates. That could change, because supplier pricing shifts with wholesale markets, contract cycles, and fuel costs. The NJBPU requires licensed suppliers to post rates and contract terms, so comparison shopping is straightforward when the time is right.

One thing to keep in mind: a lower supply rate today does not guarantee it stays low. Fixed-rate contracts lock in your supply price for the contract term, which can range from a few months to a few years. Variable-rate contracts from suppliers can move up or down each month. Read the contract length and any cancellation terms before signing.

Shopping for a better rate matters more when budgets are tight, but New Jersey also has programs that directly reduce bills for qualifying households.

LIHEAP (Low Income Home Energy Assistance Program) provides federally funded help with heating and, in some cases, cooling costs. Applications go through the state's Division of Family Development and local agencies.

USF (Universal Service Fund) is a New Jersey-specific program that caps electric bills as a percentage of income for low-income customers. It is administered by the NJBPU and can reduce supply and delivery costs together, not just one or the other.

If you think you may qualify for either program, the NJBPU website and your local community action agency are the right starting points. Eligibility thresholds and benefit amounts are set by the state and updated periodically, so check directly with the program for current figures rather than relying on third-party summaries.

New Jersey's retail market has a mixed history. Some customers have saved money by switching. Others signed up for introductory rates that ballooned after the first few months. The NJBPU has taken action against suppliers for misleading marketing, and rules around door-to-door sales and telemarketing are strict.

A few practices that protect you:

Always ask for the contract in writing before agreeing to anything. New Jersey law gives you a three-day right to rescind after signing with a new supplier, so use it if you have second thoughts.

Compare the supply rate to your current BGS rate, not to your total bill. Delivery charges are not going anywhere, so the only number that matters for comparison is the supply rate per kWh.

Check that the supplier is licensed with the NJBPU. The agency maintains a public list of licensed suppliers on its website.

Visit ElectricRates.org's New Jersey page to see current licensed supplier offers filtered by your utility territory, so you are only comparing options that are actually available to you.

BGS rates are not arbitrary. They come out of a structured auction that utilities run under NJBPU oversight, typically covering residential customers under what is called the BGS-Fixed Price (BGS-FP) tranche. Suppliers bid to serve a slice of the residential load, and the resulting prices are averaged into the BGS rate that shows up on your bill.

These auctions happen on a set schedule, and the resulting rates take effect at specific points in the year. That means your BGS rate can change, sometimes significantly, from one period to the next. A rate that makes BGS the clear winner today might flip the math in favor of switching after the next auction cycle.

This is why a one-time comparison is not enough. Customers who want to consistently pay the lower rate need to check back periodically, especially around auction reset dates. The NJBPU posts auction results and effective dates publicly.

New Jersey's retail electric market can save you money, but only if you are served by the right utility at the right time. As of June 2026, PSE&G customers have the clearest path to savings, roughly 11% on the supply portion by switching to the lowest available supplier. Atlantic City Electric customers have a smaller but real opportunity at about 8%. JCP&L and Rockland Electric customers are better served by staying on BGS at current rates.

The NJBPU's consumer protections and licensing requirements mean the market is safer to shop than it was in the early deregulation years, but reading the contract still matters. Fixed rates, variable rates, contract length, and cancellation terms all affect whether a lower headline rate actually saves you money over time.

Check the current numbers before making any decision. Rates shift, auctions reset, and what is true in June 2026 may look different by the end of the year.