Best Electricity Rates in New Jersey 2026: Compare NJ Electric Suppliers
New Jersey is one of the most active competitive electricity markets in the Northeast. Served by JCP&L, PSE&G, ACE (Atlantic City Electric), and Rockland Electric, Garden State residents can choose from dozens of licensed Third-Party Suppliers (TPSs) and save meaningfully on their monthly electric bill. Here’s how.
New Jersey Electricity Deregulation Overview
New Jersey deregulated its electricity market in 2000. All residential customers in the state can choose their electricity supplier through the state’s licensed TPS program, regulated by the New Jersey Board of Public Utilities (NJBPU).
Your local utility still handles:
- Power delivery through local distribution infrastructure
- Outage response and restoration
- Meter reading and billing (for most customers)
A third-party supplier only handles the supply portion of your bill — the generation charge.
New Jersey Utility Territories
| Utility | Service Area |
|---|---|
| PSE&G | Newark, Jersey City, most of northern/central NJ |
| JCP&L (FirstEnergy) | Western NJ, Monmouth, Ocean, Hunterdon, Warren counties |
| ACE (Atlantic City Electric) | South Jersey, Atlantic City region |
| Rockland Electric | Northern Bergen County, Rockland County border |
PSE&G is by far the largest, serving roughly 2.3 million customers in New Jersey’s densest population centers.
New Jersey Default Electricity Rates (BGS Rate)
New Jersey utilities purchase electricity for default customers through the Basic Generation Service (BGS) auction process — an annual competitive bid where suppliers compete to serve residential default load.
| Utility | 2026 BGS Supply Rate |
|---|---|
| PSE&G | ~10.2¢/kWh |
| JCP&L | ~9.8¢/kWh |
| ACE | ~9.5¢/kWh |
Because the BGS rate reflects a competitive auction, it’s already reasonably market-competitive — which means the margin for savings through TPS shopping is narrower in NJ than in states like New York or Connecticut. However, competitive TPSs can still beat BGS by 0.5–1.5¢/kWh, and locking in a fixed rate before BGS rate changes can offer price stability.
Best Electricity Suppliers in New Jersey 2026
1. Constellation Energy
Strong NJ presence across all utility territories. Competitive fixed rates and reliable customer service. Commonly recommended for PSE&G customers.
2. IGS Energy
Well-established Mid-Atlantic supplier with competitive NJ rates and solid reviews. Available in PSE&G and JCP&L territory.
3. Spark Energy
Often among the lowest-priced options in NJ, though customers should read renewal terms carefully. Competitive on short to medium-term fixed plans.
4. Verde Energy
NJ’s green energy option. 100% renewable plans at rates often within 0.5¢ of competitive conventional plans. Available in PSE&G territory.
5. NRG / Reliant
National supplier with NJ coverage. Straightforward pricing and good online account management.
New Jersey Rate Shopping Tips
BGS auction timing matters. The BGS rate resets June 1 each year. If BGS rates are rising, locking in a fixed TPS rate before June 1 can protect you. If BGS rates are falling, being on a month-to-month TPS plan lets you benefit.
Use NJ’s official comparison site. The NJBPU operates a consumer comparison page at njcleanenergy.com/electricity/choose-a-supplier/residential. It lists all licensed TPSs with contact information.
Avoid door-to-door TPS sales. NJ has historically had issues with aggressive door-to-door TPS enrollment tactics. It’s far safer to shop via comparison sites or call suppliers directly.
Income-qualified programs. New Jersey’s Universal Service Fund (USF) and Lifeline programs provide bill assistance to qualifying low-income households. Switching to a TPS doesn’t disqualify you from these programs, but verify with your utility.
How to Switch in New Jersey
- Check your current BGS rate on your bill (the “generation” or “supply” line)
- Compare TPS offers online or via the NJBPU comparison site
- Choose a licensed TPS with a competitive fixed rate
- Enroll online with your utility account number
- Switch activates within 1–2 billing cycles
There’s no service interruption and no fee from the utility to switch. Your TPS contract may include an early termination fee — check before signing.
Enter your New Jersey ZIP code above to compare current TPS offers in your area.