New Jersey · electric utility
PSE&G Basic Generation Service & rate increases
PSE&G is a Public Service Enterprise Group (PSEG) utility serving the northern and central New Jersey corridor (Newark, Trenton, and much of the I-95 belt) (about 2.3 million customers). PSE&G is New Jersey's largest and one of its oldest utilities, tracing to a 1903 consolidation of the state's gas, electric, and streetcar companies. (source)
Basic Generation Service (current rate)
19.0735¢/kWh
Effective (current) · last reviewed
Estimate for comparison — confirm the current rate and all charges with PSE&G before acting. Not advice.
Next scheduled reset: · Annual BGS year (Jun 1) + summer/winter step Oct 1. Every utility's reset calendar →
Of the 3 New Jersey utilities we track, PSE&G's Basic Generation Service is the highest — the range runs from 15.2472¢ (Jersey Central Power & Light (JCP&L)) to 19.0735¢ (PSE&G). Compare all New Jersey rates →
The worth-it line: for a switch to save at least $10/month at ~750 kWh, a supplier offer must be a fixed rate below 17.74¢/kWh — with no monthly fee and no cancellation fee. Offers between 17.74¢ and 19.0735¢ technically "beat" the Basic Generation Service but save too little to justify contract risk. The full math, all utilities →
PSE&G customer service & quick facts
The official ways to reach PSE&G for outages, billing, and account help. RateWatchdog is independent and not affiliated with PSE&G — these are the utility's own channels.
- Pay your bill
- Pay PSE&G bill online →
- Start, stop, or move service
- Start / stop service →
Verified · confirm on PSE&G's siteHere to check if your rate is too high? Jump to the audit ↓
Is your supplier charging more?
Runs entirely in your browser. We never see your numbers.
Where is this on my bill?
On your bill, find the supply rate in ¢/kWh. Your utility's standard rate is the “Basic Generation Service.” If your supplier charges more than that, you're overpaying.
Comparing suppliers against PSE&G's Basic Generation Service?
New Jersey's official comparison tool is NJ Power Switch, run by the NJ BPU. New Jersey's official comparison tool shows certified supplier offers next to your utility's BGS rate — our guide explains the BGS auction and how to spot a genuine saving.
How to use NJ Power Switch — the full guide →Is PSE&G a monopoly? Can you switch?
For delivery, yes — it's a monopoly. PSE&G is the only company that runs the poles and wires to homes in its territory, so you can't pick a different company to deliver your power. That part is a regulated monopoly: PSE&G, owned by Public Service Enterprise Group (PSEG), can only charge what the NJ BPU approves in a rate case.
The electricity itself, though, is open to competition. You can buy your supply from a third-party supplier, or do nothing and stay on PSE&G's default rate — the Basic Generation Service the NJ BPU oversees. Switching suppliers doesn't change who delivers your power or who you call during an outage; it only changes the supply line on your bill. And if a supplier is charging more than the Basic Generation Service, you can drop it and return to that regulated rate, usually within one or two billing cycles — no fee to the utility.
How often does PSE&G's power go out?
Federal reliability data, reported by the utility to the U.S. government. SAIDI is the average total time a customer is without power in a year; SAIFI is the average number of outages.
In 2024, including major storms
45 min
without power, across about 0.6 outages
What the average customer actually experienced.
On a typical day (storms excluded)
39 min
without power, across about 0.6 outages
Normal operations, with major event days removed.
On normal-day reliability, PSE&G is the most reliable of the 4 New Jersey utilities we track — the range runs from 39 min (PSE&G) to 4 hr 15 min (Jersey Central Power & Light (JCP&L)) of typical-day outage time per year.
Source: U.S. EIA Form EIA-861, 2024 reliability data (IEEE 1366 standard), for Public Service Elec & Gas Co. eia.gov →
How often does PSE&G disconnect customers for nonpayment?
Utilities report this to the federal government. It counts residential service disconnected for unpaid bills. A high rate isn't proof of wrongdoing — it's shaped by local poverty, climate, and how strong a state's shutoff-protection rules are, as much as by the utility itself.
Disconnections in 2024
98,288
times PSE&G disconnected residential customers for nonpayment
Per 100 households
4.8
disconnections for every 100 residential customers it serves
That's the highest disconnection rate of the 3 New Jersey utilities we track — the range runs from 1.3 per 100 (Jersey Central Power & Light (JCP&L)) to 4.8 per 100 (PSE&G).
Counts disconnection events — one household can be shut off more than once. From PSE&G's own filings to the U.S. EIA (Form EIA-112, Residential Utility Disconnections Survey), first collected for 2024. eia.gov →
Where your bill money goes: how PSE&G earns its profit
Because PSE&G is a regulated monopoly, its profit isn't set by competing for customers — it's set by regulators. The NJ BPU authorizes a target return on equity (around 9.5% to 10.5% for U.S. electric utilities) on the money it sinks into poles, wires, substations, and meters. It's a target, not a guarantee — a utility can earn above or below it — but a low-risk regulated monopoly reliably lands close. You pay that return back, plus the investment itself, through the delivery charge on every bill.
PSE&G is owned by Public Service Enterprise Group (PSEG). In 2024, Public Service Enterprise Group (PSEG) reported about $1.8 billion in net income — its profit across all of the utilities it owns, not PSE&G alone. Source: Public Service Enterprise Group (PSEG)'s annual report (SEC Form 10-K, fiscal year 2024). SEC EDGAR →
That authorized return is set by regulators on the utility's investment — independently of how reliable the service is or how many customers are disconnected, the two measures above.
Rate cases & increases
- ER23120924 effective
PSE&G's most recent (combined electric + gas) base rate case; the electric request of ~$522 million settled for a $341 million electric distribution increase with a 9.60% ROE. A typical residential electric bill rose about $8.93 (from $125.35 to $134.28, 7.1%).
Common questions about PSE&G
- Why did my PSE&G bill go up in 2025?
- PSE&G's Basic Generation Service (BGS) rate — the default electricity supply rate set by New Jersey's annual BGS auction — jumped roughly 17% on June 1, 2025, adding about $26.87/month to the average residential bill. The New Jersey Board of Public Utilities (BPU) attributed the increase directly to higher PJM capacity market costs from the July 2024 PJM auction, which cleared at $269.92/MW-day — approximately 9× the prior year. PSE&G passes the BGS cost through to customers with no markup.
- How do I lower my PSE&G electric bill?
- The fastest supply-side option is to check NJ Power Switch (njpowerswitch.gov) for certified Third-Party Supplier offers below the current BGS rate — a fixed rate below BGS with no cancellation fee beats the default. On the usage side, PSE&G's Customer Assistance Program (CLIPP — Customer Assistance, Low Income, Protection Program) limits the monthly bill for income-qualified customers to a percentage of income. For arrears, the New Jersey Universal Service Fund (USF) and NJ SHARES both provide grants. Energy efficiency upgrades (LED lighting, smart thermostat) typically deliver the most permanent savings.
- What is the PSE&G Basic Generation Service rate?
- PSE&G's BGS supply rate is set annually by New Jersey's BGS auction, effective June 1 each year. As of June 2025, it rose approximately 17% versus the prior year, per the NJ Board of Public Utilities. For the current rate in ¢/kWh, check NJ Power Switch at njpowerswitch.gov — that's the official real-time source. The BGS is the supply-only rate; delivery charges are separate.
How New Jersey's BGS supply auction works — and why PSE&G customers felt it
New Jersey doesn't let PSE&G set its own electricity supply rate. Instead, the state Board of Public Utilities (BPU) runs an annual Basic Generation Service (BGS) auction: competitive suppliers bid to provide electricity to all NJ utility customers who haven't shopped for their own supplier. The lowest valid bids win, and the resulting blended rate becomes the BGS — the rate that shows up on your PSE&G bill as "generation charges."
The auction clears in February and takes effect June 1. In February 2025, the BGS auction cleared at significantly higher prices than the prior year — the BPU's own press release attributed the jump directly to higher PJM capacity market costs from the July 2024 auction. PSE&G customers' average monthly bill rose about $26.87, or roughly 17%, purely from the supply side.
The delivery charge — the portion PSE&G actually earns a return on — is set separately by NJ BPU rate cases and didn't change at the same time. When you hear "PSE&G raised rates," it's almost always the BGS auction results, not a PSE&G profit decision.
Can PSE&G customers switch to a Third-Party Supplier?
Yes — New Jersey is a deregulated electricity market. PSE&G customers can choose a certified Third-Party Supplier (TPS) for the generation portion of their bill. The BGS becomes the benchmark: any TPS offer that comes in below the current BGS rate, fixed for the full term, with no cancellation fee, represents a genuine supply savings.
The official comparison tool is NJ Power Switch (njpowerswitch.gov), run by the BPU. It shows all certified NJ suppliers' current offers next to the BGS. After the 2025 BGS spike, the gap between BGS and competitive fixed offers narrowed — worth checking njpowerswitch.gov before signing anything. Variable-rate TPS offers are higher risk: they can float above the BGS mid-contract.
PSE&G service territory
PSE&G (Public Service Electric and Gas) is New Jersey's largest electric utility, serving the dense northeastern corridor — from Newark and Jersey City through Trenton and the central industrial belt along the I-95/Turnpike spine.
- ▸ Core counties: Essex, Hudson, Bergen, Passaic, Union, Middlesex, Mercer, and Somerset
- ▸ Anchored by the Newark metro, Trenton, and the Route 1 corridor
- ▸ 2.3 million electric customers — roughly 50% of New Jersey's residential population
- ▸ Serves some of the most densely populated zip codes in the United States
Source: PSE&G service territory map
What does a PSE&G bill look like?
ESTIMATE — see note below.
| Bill component | At 750 kWh/month |
|---|---|
| Supply / generation (11¢/kWh) | $82.50 |
| Delivery, transmission & other riders | see note → |
⚠ Supply charge only — Ameren Illinois summer 2026 PTC 11.326¢/kWh for the first 800 kWh (source: ICC Plug In Illinois). Delivery charges (~4–6¢/kWh) are additional. Ameren is in MISO, not PJM. Verify at plugin.illinois.gov.
PSE&G rate alerts
Email alerts for PSE&G are coming soon — we're setting them up with double opt-in and one-click unsubscribe, and we'll never sell your data. For now, this page and the New Jersey hub track every active rate case.