New Jersey Electricity Rates
New Jersey deregulated its electricity market in 1999, giving millions of Garden State residents the power to choose their electricity supplier. With four major utility territories covering most of the state, NJ consumers can shop from dozens of certified third-party suppliers—and those who compare plans typically save 15–30% versus the utility default rate. Below you’ll find current NJ electricity rates, a breakdown of how the deregulated market works, and everything you need to secure the best plan.
Key Takeaways
New Jersey Avg Rate
U.S. National Average
How New Jersey Electricity Deregulation Works
New Jersey’s Electricity Discount and Energy Competition Act of 1999 separated electricity generation from delivery. You choose who generates your electricity (the supply portion) while your local utility handles delivery through existing poles and wires. Your utility still responds to outages, reads your meter, and maintains the infrastructure—only the supply portion of your bill changes when you switch.
Find Your Utility
Your utility territory determines which suppliers are available. Enter your ZIP code or check your current bill to identify whether you’re served by PSE&G, JCP&L, Atlantic City Electric, or Orange & Rockland.
Compare Suppliers
Browse certified third-party suppliers and compare supply rates, contract terms, and plan features. Focus on the supply rate per kWh since delivery charges remain the same regardless of supplier.
Enroll Online or by Phone
Sign up with your chosen supplier. They handle the switch notification to your utility—you don’t need to contact your utility or do anything else.
Start Saving
The switch completes within 1–2 billing cycles. There is zero interruption to your power service. You’ll see the new supply rate reflected on your next bill.
Supply vs. Delivery: Understanding Your NJ Bill
Your New Jersey electricity bill has two main components. Supply charges cover the cost of generating electricity—this is the portion you can shop for by choosing a third-party supplier. Delivery charges cover the cost of transmitting and distributing electricity through your utility’s infrastructure—these are regulated by the NJ Board of Public Utilities (BPU) and stay the same regardless of which supplier you choose.
New Jersey Electric Utility Territories
New Jersey is divided into four electric utility territories. Your utility determines the delivery charges on your bill (regulated by the NJ BPU) and which third-party suppliers are available in your area. All four territories participate in the deregulated market.
Public Service Enterprise Group (PSE&G)
The state’s largest utility, serving over 2 million electric customers across 300 communities in central and northern New Jersey. PSE&G territory typically has the most competitive supplier marketplace due to its large customer base. Outage line: 800-436-7734.
Jersey Central Power & Light (JCP&L)
A FirstEnergy subsidiary covering coastal and central areas including Toms River, Long Branch, Silverton, and Fort Dix. JCP&L serves over 1.1 million customers across 13 counties. Outage line: 888-544-4877.
Atlantic City Electric (ACE)
Covers much of southern New Jersey including Atlantic, Burlington, Camden, Cape May, Cumberland, and Ocean counties. Part of the Exelon family. ACE serves approximately 560,000 customers. Outage line: 800-833-7476.
Orange & Rockland Electric (O&R)
Serves a small portion of northwestern New Jersey near the New York border, including parts of Bergen, Passaic, and Sussex counties. Part of Consolidated Edison. Outage line: 877-434-4100.
Types of New Jersey Electricity Plans
New Jersey’s competitive market offers several plan types from certified Third Party Suppliers (TPS). Understanding the differences helps you choose a plan that matches your budget and energy preferences.
Fixed-Rate Plans
Your supply rate per kWh stays locked for the entire contract term (typically 6–24 months). Ideal for NJ homeowners who want predictable bills through hot summers and cold winters.
- Rate locked regardless of market fluctuations
- Protection against seasonal price spikes
- Early termination fees may apply ($50–$200)
- Budget predictability year-round
Variable-Rate Plans
Your supply rate fluctuates monthly based on wholesale market conditions. Best for NJ customers who want flexibility without long-term commitments.
- No contract or early termination fee
- Rates may drop during mild spring/fall months
- Can spike during extreme weather events
- Cancel or switch anytime without penalty
Green Energy Plans
Electricity sourced from renewable resources. New Jersey is a national leader in offshore wind development and has ambitious clean energy targets for 2030 and beyond.
- Support NJ’s clean energy transition
- Often competitively priced with conventional
- 100% renewable energy certificates (RECs)
- Same reliability as conventional electricity
Short-Term Plans
Lock in a rate for 1–3 months. Good for new NJ residents or anyone who wants to test a supplier before committing to a longer contract.
- Try a supplier with minimal commitment
- No or very low cancellation fees
- Typically converts to variable after term
- Useful for renters with shorter leases
Incentive Plans
Some NJ suppliers offer plans with special incentives like sign-up bonuses, gift cards, smart home devices, or loyalty rewards for long-term customers.
- Sign-up bonuses or gift cards
- Smart thermostat or device included
- Loyalty discounts for renewals
- Compare total value, not just the rate
Community Solar Plans
New Jersey’s Community Solar Energy Pilot Program allows residents who can’t install rooftop panels to subscribe to a local solar project and receive bill credits.
- No rooftop panels needed
- Typical savings of 10–20% on supply
- Available to renters and homeowners
- Credits applied directly to your utility bill
Electricity for New Jersey Homes
New Jersey homes are, on average, 20% larger than the national average at 2,399 square feet. Despite this, NJ’s moderate climate means total electricity consumption is actually below the national average at 8,902 kWh per year. However, NJ residents still pay approximately $3,065 annually for energy—making the state one of the most expensive for electricity costs in the country.
Natural gas is the dominant heating fuel in New Jersey, used in 80% of homes. About 63% of NJ residences have central air conditioning, and 93% use air conditioning equipment of some kind. The majority of NJ residences (70%+) are single-family homes, with apartments making up approximately 25% and mobile homes about 5%.
NJ Homeowner Tip: Watch for Default Rate Traps
If you’ve never switched suppliers, you’re likely on your utility’s Basic Generation Service (BGS) rate. The BGS rate is set through annual auctions and changes each June. While it isn’t always the most expensive option, NJ shoppers who compare plans frequently find fixed-rate offers 10–20% below the current BGS rate—especially during spring and fall shopping windows.
New Jersey Business Electricity Rates
New Jersey is home to major industries including life sciences, healthcare, technology, financial services, logistics, manufacturing, and food production. The state’s commercial electricity rate averages 18.78¢/kWh—above the national commercial average of 14.12¢/kWh. Businesses can shop for competitive supply rates just like residential customers.
Life Sciences & Pharma
New Jersey is the pharmaceutical capital of the U.S. Labs and manufacturing facilities require reliable, cost-effective power for temperature-controlled environments.
Office & Financial Services
NJ’s proximity to New York City makes it a hub for financial services. Corporate campuses benefit from multi-year supply agreements.
Warehousing & Logistics
NJ’s ports and transportation network make it a logistics powerhouse. Warehouse lighting, refrigeration, and automated systems drive significant energy costs.
Best Time to Shop for NJ Electricity
Wholesale electricity prices in New Jersey’s PJM market follow seasonal patterns driven by heating and cooling demand. Timing your switch can lock in significantly better rates.
Spring: Mar–May
Heating demand fades and summer AC hasn’t kicked in. PJM wholesale prices drop and NJ suppliers offer their most competitive rates. The single best window to lock in a low fixed rate.
Winter: Jan–Feb
Cold temperatures drive heating demand and can spike wholesale prices, particularly during polar vortex events. If your contract expires in winter, try to renew before December.
Fall: Sep–Oct
AC demand fades and wholesale prices retreat. Another strong shopping window, especially if you missed the spring window or your current plan is ending.
NJ-Specific Tip: BGS Auction Timing
New Jersey utilities set their Basic Generation Service (BGS) rates through annual auctions held in February, with new rates taking effect each June. If the auction results in a rate increase, third-party supplier plans often become even more competitive by comparison. Pay attention to BGS auction results as a signal for when switching can yield the greatest savings.
New Jersey Clean Energy & Efficiency Programs
New Jersey has ambitious clean energy goals and offers several programs to help residents and businesses reduce energy costs and their carbon footprint.
NJ Smart Start Buildings
Provides financial incentives for new construction, renovations, and equipment upgrades that meet higher energy efficiency standards. Covers lighting, HVAC, building performance, and custom measures.
Offshore Wind Development
New Jersey is pursuing 11 GW of offshore wind by 2040—the most ambitious target of any U.S. state. Projects off the Atlantic coast will eventually supply clean electricity to millions of NJ homes.
Community Solar Program
Allows NJ residents who can’t install rooftop solar to subscribe to a local solar project and receive bill credits. Available to renters, condo owners, and homeowners with shaded roofs.
Home Energy Audits
NJ utilities offer subsidized home energy audits that identify opportunities to reduce energy waste. Many improvements qualify for rebates on insulation, smart thermostats, and efficient appliances.
Frequently Asked Questions About New Jersey Electricity
Everything you need to know about shopping for electricity in New Jersey, answered in plain language.
Is New Jersey a deregulated electricity state?
Yes. New Jersey deregulated its electricity market in 1999 under the Electricity Discount and Energy Competition Act. Residents and businesses served by PSE&G, JCP&L, Atlantic City Electric, and Orange & Rockland can choose their electricity supplier. Your utility continues to deliver power through the same infrastructure—only the supply portion of your bill changes.
What is the average electricity rate in New Jersey?
The average residential electricity rate in New Jersey is 22.65¢/kWh as of March 2026, which is about 25% above the national average of 18.05¢/kWh. The commercial rate averages 18.78¢/kWh. By shopping for a competitive supplier, NJ customers can often find rates below the utility default.
How do I switch electricity providers in NJ?
Switching takes about 10 minutes and causes zero service interruption. Compare available suppliers using your ZIP code, choose a plan, and enroll online or by phone. Your new supplier handles the switch notification to your utility. The transition completes within 1–2 billing cycles. The same electricity flows through the same wires—only the supply charge on your bill changes.
What are New Jersey’s electric utilities?
New Jersey has four major utilities: PSE&G (2M+ customers in central/northern NJ), JCP&L (1.1M customers in coastal/central areas, a FirstEnergy subsidiary), Atlantic City Electric (560K customers in southern NJ), and Orange & Rockland (small territory in northwestern NJ near the NY border). Your utility determines which suppliers are available and sets the delivery charges on your bill.
What is the average NJ electric bill?
The average New Jersey household uses about 742 kWh per month (8,902 kWh/year)—below the national average of 1,000 kWh. However, NJ’s higher per-kWh rates mean the average annual energy cost is approximately $3,065, making the state one of the most expensive for electricity in the country. Shopping for a competitive supply rate can reduce this cost by 15–30%.
What is Basic Generation Service (BGS)?
BGS is the default electricity supply rate set by NJ utilities for customers who haven’t chosen a third-party supplier. BGS rates are determined through annual auctions held in February, with new rates taking effect each June. The BGS rate isn’t always the most expensive option, but shoppers who compare plans regularly find fixed-rate offers 10–20% lower, especially during favorable market conditions.
Can I get green energy in New Jersey?
Yes. Many NJ suppliers offer 100% renewable energy plans sourced from wind and solar through renewable energy certificates (RECs). New Jersey is also a national leader in offshore wind, with 11 GW of capacity targeted by 2040. Green plans are often competitively priced with conventional options—sometimes even cheaper.
Are there cancellation fees for NJ electricity plans?
It depends on the plan. Variable-rate and month-to-month plans typically have no cancellation fee. Fixed-rate plans with longer terms may include early termination fees of $50–$200. New Jersey law requires suppliers to clearly disclose all fees before enrollment. Always review the Electricity Facts Label (EFL) and contract terms before signing up.
Who do I call for power outages in NJ?
For power outages, always contact your utility—not your supplier. PSE&G: 800-436-7734. JCP&L: 888-544-4877. Atlantic City Electric: 800-833-7476. Orange & Rockland: 877-434-4100. Your utility owns and maintains the delivery infrastructure regardless of which supplier you use.
Can I have solar panels and still choose a supplier?
Yes. New Jersey supports net metering for solar panel owners. You can generate your own electricity, send excess power back to the grid for credits, and still choose a competitive supplier for any additional electricity you need. NJ is one of the top states for residential solar installations.
About this Data
Rate data is sourced from the U.S. Energy Information Administration (EIA), the New Jersey Board of Public Utilities (BPU), and the ElectricChoice.com electric rate marketplace. The inclusion, exclusion, ranking, or naming of any rate, plan, or provider on this page does not constitute an endorsement or recommendation. Listed rates reflect averages and do not include all utility-specific delivery charges. You should review each plan’s terms of service before enrolling. Last data refresh: March 2026.