New Jersey Electricity Ratesand Third-Party Suppliers

Understand rates, suppliers, local delivery and plan details before comparing electricity options in New Jersey.

STATE NJ

GUIDE Rates + market

COMPARE ZIP + usage

SECTIONS 8

New Jersey electricity rates should be compared as a complete service decision, not as a single advertised number. The useful questions are who delivers power at the address, whether supply choice is available, what the current default supply option costs, and how a competing contract behaves at the household’s normal usage.

New Jersey customers can compare third-party electric suppliers while the local electric distribution company continues to deliver service. The relevant benchmark is the customer’s Basic Generation Service (BGS) arrangement and utility territory. A PSE&G customer and a JCP&L customer should therefore compare against their own account conditions, not a single statewide rate.

LOCATION CHANGES THE MATH

Start with your New Jersey ZIP code

Rates, utilities and available plans can change by service area. Use your ZIP code as the first local filter.

Electricity market in New Jersey

New Jersey customers can shop for the electricity supply portion of service through licensed third-party suppliers while the local electric distribution company continues to deliver power. The state opened retail supply competition through electric restructuring, but the utility remains the delivery company assigned by location. Customers who do not select a third-party supplier receive utility-procured Basic Generation Service (BGS) for supply.

New Jersey’s supply choice sits on top of regulated utility delivery. Customers who do not select a third-party supplier receive BGS through their utility arrangements, while competitive suppliers can offer alternative contracts. The decision is about the generation supply portion; wires, meters and outage response stay with the distribution company.

How electricity choice works in New Jersey

Retail choice in New Jersey is a supply decision. A third-party supplier can replace BGS for the commodity portion, but the same electric distribution company continues to operate the network and respond to outages. The New Jersey Board of Public Utilities oversees electric utilities and supplier licensing. Customers should verify that a supplier is authorized and compare its contract with the current utility supply benchmark before enrolling.

The New Jersey Board of Public Utilities oversees electric suppliers and utility service. Before choosing a third-party supplier, compare the supplier’s price and contract with the current BGS supply cost on the utility bill. A promotional offer can look attractive initially but still require careful review of its term and renewal provisions.

Utilities and electricity providers in New Jersey

Major electric distribution companies include Public Service Electric & Gas (PSE&G), Jersey Central Power & Light (JCP&L), Atlantic City Electric and Rockland Electric. Each serves its own geographic territory. Switching a supplier does not change these delivery assignments. Distribution charges and reliability responsibilities remain with the local utility while the competitive supplier, if selected, is responsible for the contracted supply product.

PSE&G, Jersey Central Power & Light, Atlantic City Electric and Rockland Electric serve different New Jersey territories. Their regulated delivery rates and BGS details can differ. Supplier availability is tied to those territories, so the electric distribution company on the account is the starting point for an accurate comparison.

Electricity rates and what affects your bill

The total New Jersey electric bill includes delivery plus electricity supply. BGS is the default supply arrangement for customers who have not chosen a third-party supplier. Supplier offers should therefore be evaluated against the current BGS supply cost on a comparable basis. Review monthly charges, promotional periods, contract length, variable-price provisions and cancellation terms. A lower supply rate may have limited impact if delivery charges make up a large share of the total bill.

New Jersey bills combine supply and delivery components, and BGS prices can change according to approved procurement schedules. Supplier contracts can add fixed terms, variable pricing or fees. Use yearly kWh consumption to estimate the supply cost and compare it with the current BGS benchmark before including any incentive in the decision.

Fixed, variable and renewable electricity plans

Third-party suppliers can market fixed-rate, variable-rate and renewable electricity products. A fixed supply rate can improve predictability for the contract period, but renewal pricing still matters. Variable products require more frequent review. Renewable claims should be evaluated by reading how the supplier defines renewable content or environmental attributes. Additional services or rewards should be valued separately from the electricity price so they do not obscure the underlying supply cost.

Third-party supplier contracts in New Jersey can use fixed pricing, variable pricing and renewable attributes. A fixed term should be checked for the rate after expiration, while variable products require monitoring. Green offers should state what renewable content or certificates are included instead of relying only on environmental marketing language.

A useful New Jersey comparison record includes the utility, current BGS supply price, proposed supplier price, term, fee schedule and renewal rule. Save the supplier disclosure and enrollment confirmation. This creates a simple audit trail if the account does not switch on the expected meter-read cycle or the bill differs from the offer.

How to compare and choose a New Jersey electricity plan

Start with the latest utility bill, identify the BGS supply price and calculate how much electricity the household typically uses. Compare supplier prices on the same kWh basis and read every fee and renewal condition. Check whether the offer is fixed for the full term, whether a cancellation fee applies, and what rate applies after expiration. Use only licensed suppliers and avoid providing account information until the offer and company identity have been verified.

Moving within New Jersey can place the household in a different electric distribution territory, changing both BGS and the supplier offers available. Set up utility service at the new address before selecting supply. When switching without moving, review the existing contract first and continue to contact the utility for outages and delivery emergencies.

Moving, switching and consumer considerations

Moving to a new New Jersey address can change the electric distribution company, which also changes the relevant BGS benchmark and supplier availability. Establish delivery service first and ask the supplier whether an existing agreement can transfer. If switching suppliers without moving, review the current contract and effective dates to avoid overlapping commitments. Outages and delivery emergencies always remain matters for the local electric utility.

New Jersey shoppers can use our guides to supplier and utility roles, variable-rate contracts and renewable electricity options when comparing a third-party offer with BGS.

Frequently asked questions

Can New Jersey residents choose an electricity supplier?

Many customers can choose a licensed third-party supplier for electricity supply while keeping the same electric distribution company.

What is Basic Generation Service in New Jersey?

BGS is utility-procured default electricity supply for customers who have not selected a third-party supplier.

Does a supplier switch change PSE&G, JCP&L, Atlantic City Electric or Rockland Electric service?

No. The electric distribution company assigned to the address continues to deliver power and respond to outages.

What should I compare with a third-party supplier offer?

Compare the supplier’s price and terms with the current BGS supply cost, and review fees, contract duration, cancellation rules, renewal pricing and renewable claims.