New Jersey Energy Choice
Your right to shop Third-Party Suppliers under New Jersey's Electric Discount and Energy Competition Act. Same delivery service, different generation rate, no service interruption.
What Energy Choice Means in New Jersey
New Jersey deregulated retail electricity in 1999. Under the Electric Discount and Energy Competition Act, your bill splits into two parts: delivery and generation. Your Electric Distribution Company — PSEG, JCP&L, Atlantic City Electric, or Rockland Electric — handles delivery. You can shop generation. The NJ Board of Public Utilities licenses every supplier and runs the annual auction that sets Basic Generation Service rates.
When you switch to a Third-Party Supplier, your EDC continues to deliver electricity — same wires, same outage response, same emergency line. The supplier files the switch with the EDC; it processes on your next meter read. You can return to BGS at any time at no cost.
Basic Generation Service (BGS)
BGS is the default electricity supply rate that EDCs charge customers who haven't chosen a Third-Party Supplier. The BGS-RSCP (Residential Small Commercial Pricing) rate is set each June 1 through an annual auction administered by NJBPU. The auction commits suppliers to provide BGS power at competitive wholesale rates for one year. EDCs pass the rate through at no markup.
A Third-Party Supplier rate below your EDC's current BGS rate at your real usage saves money on the supply portion of your bill. Delivery charges stay the same regardless of supplier.
Your Protections Under NJBPU
- Every Third-Party Supplier must hold an NJBPU license. The license carries financial-security and disclosure requirements.
- New residential contracts include a 3-day rescission window — you can cancel without penalty.
- Suppliers must provide a contract summary disclosing the rate, term, and any cancellation fees.
- NJBPU handles complaints and can revoke a license for repeated violations.
- You can return to Basic Generation Service at any time at no cost.