How much is the PSE&G rate increase?

PSE&G's Basic Generation Service rose about 17.24% effective June 1, 2025. That's roughly $26.87 more a month for a typical 700 kWh home.

Is PSE&G making more profit from this?

Not from the supply increase itself — that's a pass-through with no markup. Public Service Enterprise Group (PSEG) (the parent company) reported about $1.8 billion in profit in 2024, but that comes from the delivery/distribution side and its other businesses, not from marking up the power you buy. This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.

Will switching suppliers lower my PSE&G bill?

Often not. When the increase is a capacity-driven default rate, a competitive supplier is buying from the same wholesale market — and many switchers end up paying more after a teaser rate resets. Compare any offer against PSE&G's Basic Generation Service first, and only take a fixed, full-term rate that genuinely beats it.

Rate increases · PSE&G

Why is my PSE&G bill going up in 2025–26?

Your PSE&G bill went up, and it's not your imagination or just the AC. New Jersey's annual BGS supply auction. The state BPU said plainly: PJM's capacity auction results are the main driver.

The key facts

PSE&G's Basic Generation Service rose — about 17.24% higher, effective June 1, 2025.
For a typical 700 kWh home, that's roughly $26.87 more a month (estimate — your bill depends on your usage).
The driver is the PJM capacity market, where the price spiked from $28.92 to $269.92/MW-day (about 830%).
Public Service Enterprise Group (PSEG) reported about $1.8 billion in 2024 profit — but not from this supply charge (it's a pass-through). See the PSE&G Report Card →

Source: NJ BPU — 2025 BGS auction results. Rates reset on a schedule — confirm the current figure before relying on it.

What's actually driving it

Think of the PJM capacity market as a retainer fee. Every year the regional grid operator pays power plants to promise they'll be available on the worst-demand days — the January cold snap, the August heat wave — even if they sit idle the rest of the time. You're not paying for electricity here; you're paying to keep the plants on call. That retainer spiked, and it flows onto the supply line of your bill.

The price went from $28.92/MW-day to $269.92 (about 830%), and the latest auction cleared even higher at $329.17 — the cap. Why? Electricity demand is rising fast — led by data centers, plus electrification and economic growth. Older power plants are retiring faster than new ones can connect to the grid. Source: PJM Interconnection — 2026/2027 Base Residual Auction results (July 2025).

Is PSE&G pocketing this?

This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.

What you can actually do

Check usage vs. rate. A higher rate and a hot month stack up. Pull your kWh from last month and compare it to the same month last year — it tells you how much is the rate and how much is the weather.
Check whether you're overpaying on supply. If a third-party supplier is charging more than PSE&G's Basic Generation Service, that's a fixable overcharge — but switching rarely beats a capacity-driven default rate, so compare honestly first. Run the free, private audit → Should you shop in New Jersey? → How to use NJ Power Switch, New Jersey's official comparison tool →
If the bill is more than you can cover, there's real help — assistance programs, payment plans, and your shutoff protections. Bill help in New Jersey →

The fuller picture on PSE&G

A rate increase is one number. Here's the context most coverage skips: in 2024, PSE&G disconnected about 4.8 households per 100 customers for nonpayment. Its parent, Public Service Enterprise Group (PSEG), cleared about $1.8 billion in 2024.

See the full PSE&G Report Card → Compare every utility on rates, reliability, disconnections and profit →

Common questions

How much is the PSE&G rate increase?: PSE&G's Basic Generation Service rose about 17.24% effective June 1, 2025. That's roughly $26.87 more a month for a typical 700 kWh home.
Why is my PSE&G bill going up?: New Jersey's annual BGS supply auction. The state BPU said plainly: PJM's capacity auction results are the main driver.
Is PSE&G making more profit from this?: Not from the supply increase itself — that's a pass-through with no markup. Public Service Enterprise Group (PSEG) (the parent company) reported about $1.8 billion in profit in 2024, but that comes from the delivery/distribution side and its other businesses, not from marking up the power you buy. This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.
Will switching suppliers lower my PSE&G bill?: Often not. When the increase is a capacity-driven default rate, a competitive supplier is buying from the same wholesale market — and many switchers end up paying more after a teaser rate resets. Compare any offer against PSE&G's Basic Generation Service first, and only take a fixed, full-term rate that genuinely beats it.

Last reviewed June 18, 2026. Default-supply rates reset on a schedule and rate cases move — confirm the current figure with NJ BPU — 2025 BGS auction results or your bill before relying on it. This is general consumer information, not legal or financial advice.

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