New Jersey · electricity shopping guide
NJ Power Switch: how to use New Jersey's official electricity comparison tool
Last reviewed: June 29, 2026 · Independent — no supplier commissions, ever.
NJ Power Switch — New Jersey's official comparison tool at njpowerswitch.gov, run by the NJ Board of Public Utilities (BPU) — lists every BPU-certified electricity supplier's current rate alongside your utility's Basic Generation Service (BGS). The BGS is the default supply rate set by New Jersey's annual BGS auction. It's the only number any supplier offer needs to beat.
In 2025, New Jersey's BGS jumped 17–20% depending on your utility. Here's the context, the current numbers, and the honest framework for deciding whether to shop.
Independent — no supplier relationships
RateWatchdog tracks NJ BPU filings and BGS auction results. We take no commissions from electricity suppliers. If we recommend njpowerswitch.gov, it's because that's the right place to compare.
New Jersey BGS rate changes by utility (June 2025)
The 2025 BGS auction affected all four NJ utilities. JCP&L customers saw the largest percentage jump at 20.2%; Atlantic City Electric customers saw the largest dollar increase at $28.02/month.
| NJ utility | Service area | BGS increase (June 2025) |
|---|---|---|
| PSE&G | Newark, Trenton, Essex/Bergen/Hudson/Mercer counties | +$26.87/mo (+17.2%) |
| JCP&L (FirstEnergy) | Monmouth, Morris, Ocean, Somerset counties | +$22.67/mo (+20.2%) |
| ACE (Exelon) | Atlantic City, South Jersey shore | +$28.02/mo (+17.2%) |
| Rockland Electric | Bergen, Passaic, Sussex counties (northern NJ only) | See njpowerswitch.gov |
Source: NJ BPU — 2025 BGS auction results (effective June 1, 2025). Dollar increases are average residential monthly impacts. Current ¢/kWh BGS rates: verify at njpowerswitch.gov.
Why New Jersey's BGS jumped so much in 2025
New Jersey's BGS auction clears in February and takes effect June 1. In February 2025, competitive suppliers bid for the right to supply power to all NJ utility customers on the default rate — and those bids came in much higher than the prior year. The NJ BPU's own press release was direct about the cause: the PJM capacity market.
The July 2024 PJM capacity auction cleared at $269.92/MW-day — roughly 9× the prior year's $28.92. PJM capacity costs are built into the wholesale electricity prices that BGS suppliers pay to provide power. When PJM capacity prices spike, BGS bids spike, and the BGS rate spikes. The 2025/26 PJM auction cleared at $329.17/MW-day (the FERC price cap), keeping upward pressure on BGS rates going into 2026.
Your utility earns no profit on the BGS — it passes the auction result straight through to your bill. The increase is a regional wholesale market event, not a utility decision.
How to use NJ Power Switch: 4 steps
- 1
Go to njpowerswitch.gov and select your New Jersey utility
The tool asks which electric distribution company serves your address — PSE&G, JCP&L, Atlantic City Electric, or Rockland Electric. If you're not sure, check your electric bill.
- 2
Note the current BGS rate — that's your benchmark
The BGS is shown at the top of the results. If you haven't switched, you're paying the BGS for supply. If you're already on a Third-Party Supplier, find your current rate on your bill and compare it to today's BGS. You may be paying more than the default — post-2025 BGS increases changed the math for many old contracts.
- 3
Compare Third-Party Supplier offers — three things to check
Rate type (fixed vs. variable — variable offers can float above the BGS), contract length (how long the rate is guaranteed), and cancellation fee. A fixed TPS offer below the BGS with no monthly fee and no early-termination charge is the cleanest win. Variable-rate offers at or near the BGS are not a safe bet.
- 4
Do the math before switching
Monthly savings = (BGS rate - TPS rate) × monthly kWh. New Jersey's average residential usage is about 690 kWh/month. At 690 kWh, a 1¢/kWh saving is $6.90/month — $83/year. A 0.5¢ saving is $41/year. Factor in any cancellation fee against the expected monthly savings. If the offer beats the BGS by less than 0.5¢, the risk usually isn't worth it.
If your NJ bill is high and shopping doesn't help enough
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NJ USF (Universal Service Fund)
Income-qualified NJ residents receive a fixed monthly credit on their electric bill based on household income. Applied automatically if you qualify — no application required after initial enrollment through your utility.
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LIHEAP (Low Income Home Energy Assistance Program)
Federally funded one-time electric bill payment for income-qualified households. Apply through New Jersey's Community Action Agencies or online at njhelps.org.
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NJ SHARES
New Jersey's home energy assistance program for one-time crisis situations — for customers facing shutoff who may not qualify for LIHEAP or have already used LIHEAP for the season.
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Utility CLIPP (PSE&G) / Budget Billing
PSE&G's Customer Assistance, Low Income, Protection Program (CLIPP) caps monthly bills for income-qualified customers. All four NJ utilities also offer budget billing to even out seasonal spikes — not a discount, but it prevents the $250 August bill.
Full guide: New Jersey electric bill help programs →
Frequently asked questions
- What is NJ Power Switch?
- NJ Power Switch is New Jersey's official electricity supplier comparison tool, operated by the New Jersey Board of Public Utilities (NJ BPU) at njpowerswitch.gov. It lists every BPU-certified Third-Party Supplier (TPS) licensed to serve New Jersey customers, shows their current rates and contract terms, and displays them alongside your utility's Basic Generation Service (BGS) rate — the default supply rate set by New Jersey's annual BGS auction. New Jersey deregulated its electricity market in 1999.
- What is the New Jersey BGS electricity rate?
- New Jersey's BGS (Basic Generation Service) is the default electricity supply rate for residential customers in each NJ utility territory. The rate is set annually by a competitive BGS auction run by the NJ BPU, with the new rate effective each June 1. The 2025–26 BGS resulted in an average monthly bill increase of $26.87 for PSE&G customers (+17.2%), $22.67 for JCP&L customers (+20.2%), and $28.02 for Atlantic City Electric customers (+17.2%). For the current ¢/kWh BGS rate, check njpowerswitch.gov.
- Why did my NJ electric bill go up in 2025?
- New Jersey's Basic Generation Service (BGS) rate jumped roughly 17–20% on June 1, 2025, depending on your utility. The NJ Board of Public Utilities attributed the increase directly to PJM capacity market costs — the July 2024 PJM auction cleared at $269.92/MW-day, approximately 9× the prior year. Your utility passes the BGS auction result through with no markup; the increase is a wholesale commodity event, not a utility profit decision.
- Who has the cheapest electricity rates in New Jersey?
- New Jersey's electricity market is deregulated, so the 'cheapest' rate depends on current Third-Party Supplier (TPS) offers vs. your utility's BGS benchmark. Check NJ Power Switch at njpowerswitch.gov for current offers in your utility's territory. A fixed-rate TPS offer below your utility's current BGS rate, with no monthly fee and no early-termination penalty, is the definition of a genuine saving. NJ has some of the highest all-in residential electricity rates in the US (~17–19¢/kWh all-in), largely because of high delivery charges, not just supply.
- Is New Jersey electricity deregulated?
- Yes — New Jersey deregulated its electricity market in 1999. Residential customers of PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric can choose a certified Third-Party Supplier (TPS) for the generation (supply) portion of their bill. The utility continues to handle delivery, outage response, and billing. Customers who don't shop remain on the default BGS. The official comparison tool is NJ Power Switch at njpowerswitch.gov.
- Can I switch electricity suppliers to save money in NJ?
- Potentially. After the 2025 BGS spike (+17–20%), some fixed-rate TPS offers that previously looked expensive vs. the BGS benchmark are now worth comparing. Use NJ Power Switch to check. The rules of a good switch: (1) fixed rate, not variable, (2) rate is genuinely below today's BGS, (3) no monthly fees or per-term charges, (4) cancellation fee is zero or tolerable given the monthly savings. Variable-rate TPS offers are riskier — they can float above the BGS mid-contract.
- What is PSE&G's Basic Generation Service rate?
- PSE&G's BGS rate is set by New Jersey's annual BGS auction, effective June 1 each year. As of June 2025, it increased approximately 17.2%, adding about $26.87/month to the average residential bill. For the current rate in ¢/kWh, the real-time source is NJ Power Switch at njpowerswitch.gov — the BPU publishes the BGS rate there alongside TPS offers. PSE&G earns no profit on the BGS; it's a pass-through supply cost.
- Is NJ Power Switch safe and legitimate?
- NJ Power Switch (njpowerswitch.gov) is the official New Jersey government comparison tool run by the NJ Board of Public Utilities. Only BPU-certified Third-Party Suppliers appear in the database. If you're shopping and a supplier's offer can't be verified on njpowerswitch.gov, that's a red flag — door-to-door offers and telemarketing pitches aren't always registered or accurate. Always verify any offer at njpowerswitch.gov before signing anything.
- Why are NJ electricity rates so high compared to other states?
- New Jersey's all-in residential electricity rates (~17–19¢/kWh) are among the highest in the US for several reasons: high population density drives high delivery infrastructure costs; the BGS is set by PJM auctions which include regional capacity charges; New Jersey has committed to aggressive offshore wind buildout with rate-recovery mechanisms; and state-mandated societal benefit programs add to the bill. The supply (BGS) portion is roughly 10–11¢/kWh; the rest is delivery and programs.