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New Jersey Has the Highest Electricity Rates in the US — And a Deregulated Market to Fix That
Updated on July 17, 2026
New Jersey electricity rate tracker (updated July 2026): New Jersey’s average residential electricity price is 23.49¢/kWh all-in (EIA, March 2026) — among the highest in the nation and well above the U.S. average of 18.56¢. New Jersey is deregulated: your utility delivers the power at a regulated Basic Generation Service (BGS) default supply rate, reset each June by state auction, and you can shop a licensed Third-Party Supplier against it.
The four NJ utilities and the shoppable benchmark: PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric each set a BGS default supply rate — roughly 12–18¢/kWh for the supply portion, depending on utility. That BGS rate is the number a supplier offer has to beat; find yours on the supply or generation line of your bill.
Sources: U.S. EIA Electric Power Monthly (state average); New Jersey Board of Public Utilities BGS auction / utility supply rates. Compare licensed suppliers at njpowerswitch.com. BGS rates reset each June 1; last verified July 2026.
New Jersey Has the Highest Electricity Rates in the US — A Deregulated Market Can Fix That
New Jersey residents face some of the highest electricity rates in the continental United States. Customers of PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric pay significantly more per kilowatt-hour than the national average. But the good news is that New Jersey also has a fully deregulated electricity market — meaning you can shop for a better supply rate from a licensed Third-Party Supplier (TPS) without changing your utility.
Why NJ Has the Highest Electricity Rates in the Region
New Jersey’s highest electricity rates are the result of several factors: aging grid infrastructure, high demand density, and a regulatory environment that historically prioritized reliability investment over consumer price competition. The state’s “Basic Generation Service” (BGS) rate — set by each utility — is often significantly higher than competitive TPS offers. For PSE&G customers in northern NJ and JCP&L customers in central NJ, BGS rates can run $0.12–$0.18 per kWh for electricity supply alone. On a typical 750 kWh monthly usage, that’s $90–$135 just for supply before delivery charges. With some of the highest electricity rates in the region, NJ households are leaving serious money on the table by staying on BGS.
How to Lower Your Bills Despite NJ’s Highest Electricity Rates
New Jersey’s electricity deregulation (enacted in 1999) allows any residential or commercial customer to choose a Third-Party Supplier for electricity and/or natural gas supply. Your utility still delivers electricity — handling outages, meter reading, and billing — but the supply portion of your bill can come from a competitive TPS at a lower, fixed rate.
Step-by-Step: How to Switch in New Jersey
- Find your current BGS rate: Look at your most recent utility bill and find the “supply” or “generation” line items listed in cents per kWh.
- Compare TPS offers: Use MyUtilitySearch to compare available Third-Party Suppliers in your NJ utility territory. Enter your zip code to see all licensed suppliers.
- Choose a fixed-rate plan: Fixed rates protect against seasonal spikes. Despite having some of the highest electricity rates in the nation, New Jersey’s TPS market offers competitive fixed-rate options.
- Switch: Contact your chosen supplier or switch online. Your utility handles the transition with no service interruption.
Savings Potential in New Jersey
Even with some of the highest electricity rates in the US, switching to a TPS can generate significant savings:
- PSE&G territory (northern NJ): Switching from BGS can save $200–$500+ per year for typical households.
- JCP&L territory (central NJ): Similar savings available, especially with multi-year fixed-rate contracts.
- Atlantic City Electric (southern NJ): Competitive suppliers available; savings depend on current BGS rates.
- Natural gas: NJ gas is also shoppable — adding gas TPS savings can push annual savings past $600/year.
Consumer Protections for NJ Electricity Shoppers
New Jersey offers strong consumer protections despite its highest electricity rates environment:
- All TPS rates and terms must be disclosed in writing before signup
- 3-business-day cancellation period (rescission right)
- 30-day advance notice before any rate increase
- Right to return to BGS at any time without penalty on month-to-month plans
Paying Too Much for Electricity?
Rates change constantly, and loyalty rarely pays. Compare electricity plans available at your address — fixed-rate, variable, and green options, side by side.
Frequently Asked Questions
Will my service be interrupted if I switch suppliers?
No. Your utility (PSE&G, JCP&L, ACE) continues to deliver electricity and handle outages. Switching only affects who charges you for supply.
Are variable-rate TPS plans safe in NJ?
Variable-rate plans can spike significantly. Despite having the highest electricity rates already, NJ variable TPS plans can go even higher in peak periods. We recommend fixed-rate plans.
Why are New Jersey’s electricity rates so high?
NJ’s delivered electricity prices sit among the nation’s highest due to dense infrastructure costs, capacity charges and limited in-state generation. Because the state is deregulated, though, you can shop the supply portion of your bill and offset some of that with a lower competitive rate.
Can I lower my electric bill in New Jersey?
Yes. Compare licensed Third-Party Suppliers against your utility’s price to compare and lock a fixed rate below it. You can’t change the delivery charge, but choosing a cheaper supply rate is the fastest lever on a high NJ bill.
Start Saving on New Jersey’s Highest Electricity Rates Today
New Jersey may have some of the highest electricity rates in the US — but you have a legal right to shop for better rates. Most NJ households can save $200–$500+ per year on electricity alone, and more with gas and internet savings combined. For more information on New Jersey’s deregulation, visit the New Jersey Board of Public Utilities.
Additional Resources: EIA – New Jersey Energy Profile | ENERGY STAR Home Energy Savings
Comparing across the region? See our guides to deregulated energy in Maryland and Connecticut.
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