Compare Electricity Rates in New Jersey
New Jersey deregulated its energy market in 1999, allowing people to choose which companies generate the electricity that is delivered to their homes. The idea behind the legislation was to introduce competition into the previously monopolized energy market.
New Jerseyans haven’t exactly seized the opportunity: only about 6% of private customers switched until 2023.
“Not everyone takes advantage of the opportunity to switch,” said Clinton Andrewsprofessor of urban planning and policy development at Rutgers University and director of the Center for Urban Policy Research (which has research contracts with the New Jersey Board of Public Utilities).
We help you find the best electricity rates in your area
But for those with the patience to shop around, there’s the potential for a good deal (or at least a switch to renewables). Read on to learn more about energy deregulation in New Jersey.
Buy Electricity in New Jersey
The table below shows the current price to compare – the standard rate available from your utility – and the price range of the options available through Choose Energywhich is owned by the same parent company as CNET.
We help you find the best electricity rates in your area
All rates shown are accurate as of August 16, 2024, for the ZIP codes listed with each utility. CNET staff updates these rates periodically, but they may have changed since the last update. For the most up-to-date rate information in your area, enter your ZIP code at Choose EnergyThese rates reflect delivery charges only, not utility delivery charges or any applicable taxes.
Electricity Rates in New Jersey
Deregulation in New Jersey: What Does It Mean?
Simply put, this means that you can choose where your electricity comes from.
“New Jersey’s deregulation came as part of a national pattern that began in 1978 with the passage of the Public Policy Act on Utilities Regulationwhich was intended to encourage renewables and alternative energy, but which also in principle allowed competition at the generation level,” Andrews said. “Deregulation mainly emphasized opening up competition at the generation level, and not really at the transmission and distribution level.”
It wasn’t until 1999 that the New Jersey Legislature passed a bill allowing energy deregulationThe passage of this law allows New Jersey residents to choose who generates the electricity that is then transmitted and distributed by their utilities (which cannot be switched) based on price, contract length, and renewable content.
New Jersey Utility Company vs. Electricity Provider
There are four major utilities that serve most of New Jersey. They are:
- Public Service Electric and Gas, or PSE&G. Andrews said it provides both electricity and gas in an area that is “basically a straight line between New York City and Philadelphia.”
- Jersey Central Power & Light, operating on the Jersey shore and in some parts of northwestern New Jersey.
- Atlantic City Electric, which serves South Jersey, including Atlantic City.
- Rockland Electric, which serves part of the northeastern corner of the state.
While New Jersey residents rely on these utilities based on where they live, they do have the ability to choose who generates the electricity that is then transmitted to their homes.
What types of electricity plans are offered in New Jersey?
When it comes to electricity, your options are pretty simple:
Stay with your utility
Be like the vast majority of New Jersey residents and choose to stay with your utility’s generation plan. Utilities often compete to offer lower prices for electricity, so doing nothing can actually result in good energy prices.
Shop at the marketplace
You don’t know what you don’t know. Your other option is to look at alternative energy providers and see how they compare to your utility.
How to Find the Best Electricity Rates in New Jersey?
There are three main considerations when finding the best alternative electricity rates: the price per kilowatt hour, the term of the contract, and the renewable share of the energy (e.g. solar or wind). Here’s the advice from NJ power switchthe state website for the liberalized energy market:
“Shopping for Energy can save you money on your electricity or natural gas bill, but this is not always the case. Before you agree to switch to a Third Party Supplier, it is imperative to familiarize yourself with TPS pricing structures, key contract terms, and how to compare TPS pricing offers to the price you are currently paying for gas or electricity from your electricity or gas company.”
It’s up to you to research the rates you’re currently paying your utility and compare them to what third-party providers are offering. Andrews said other considerations are just as important as price.
“As a homeowner, I want to manage: Yes, I want the low price,” Andrews said. “But I also want to know that the price is not too volatile, I want to be able to plan ahead and understand how summer rates differ from winter rates,” so as not to be surprised by big changes, like when Europeans faced energy shortages due to the war in Ukraine or when Texas faced extreme weather.
“The last thing I would mention is reliability,” Andrews said. “It’s important to be able to count on your electricity provider, both to provide power 99.99 percent of the time, but also to respond quickly and effectively after a major disaster like a hurricane.” Some of this information can be found in reports from the US Energy Information Administration And Ministry of Energy.
What to look for when choosing an electricity plan in New Jersey?
This is the problem with liberalised energy markets: they often attract dishonest companies that want to rip off potential customers with unclear terms, such as high or low consumption allowances. In 2014, there were a significant number of complaints from consumers about higher energy bills, leading to a research by government agencies.
“You always have to take a buyer beware approach to things and look for strange contract clauses, like low or high usage charges, or if there’s a peak power clause that says you’re going to pay significantly more per kilowatt hour during peak hours,” Andrews said. “Or if the provider has the ability to change the price at short notice.”
How to Make the Transit in New Jersey
Perhaps one of the reasons so few New Jerseyans switch energy providers is that it can seem difficult to compare your options. NJ Power Switch does have a list of licensed third party vendors on its website (based on your utility), but few tools to make it easy to compare rates like those in other states. Instead, you have to visit each provider’s website, find their rates, and review their terms to compare with your utility’s. If you find a provider you like, simply register on their website. The changes should be reflected on your utility bill within a billing cycle or two.
Frequently Asked Questions
How much does PSE&G charge per kWh in New Jersey?
Rates change based on the time of year, especially the season. For the latest rates, visit this page Then click on the ‘Compare electricity prices’ button.
How much is the 2023 PSE&G electricity rate increase in New Jersey?
The New Jersey Board of Public Utilities announced auction results in February that will result in “slightly higher costs for providing electricity to most residents,” according to a press releaseThis year’s rate increase was 3.3%, meaning a PSE&G electricity bill of $122.39 increased $4.09 to $126.48.
Why is electricity so expensive in New Jersey?
Andrews said electricity in New Jersey is expensive because of three factors: First, “New Jersey is at the end of all the power lines — there’s nothing in the ground.” Second, “it’s quite expensive to provide electricity to highly urbanized areas because of the challenge of building infrastructure and the high cost of labor.” The last is political, as different governments prioritize lower prices, reducing pollution or improving reliability, or a combination of these factors.
Is PSE&G gas or electric?
This major utility company in New Jersey provides its customers with both gas and electricity.
