Compare electricity rates in New Jersey


New Jersey deregulated its energy market in 1999, allowing people to choose the companies that generate the electricity that powers their homes. The idea behind this bill was to introduce competition into the previously monopolized energy market.

New Jerseyans didn't necessarily jump at the opportunity. Only about 6% of residential customers switched in 2023.

“Everyone is going out of their way to take advantage of the opportunity to switch,” said Clinton Andrews, a professor of urban planning and policy development at Rutgers University and director of the Center for Urban Policy Research, which has a research contract with the New Jersey Public Utilities Commission. That's not true,” he says. ).

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But if you have the patience to shop around from supplier to supplier, you can potentially find some serious business (or at least a switch to renewable energy sources). To learn more about energy deregulation in New Jersey, read on.

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The table below shows comparable current prices (standard rates available from energy companies) and the price range of options available through Choose Energy, which is owned by the same parent company as CNET.

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We'll help you find the best electricity rates in your area

All rates shown are current as of January 31, 2024 for the zip code listed with each utility company. CNET staff updates these prices regularly, and they may have changed since the last update. For the latest rate information in your area, please enter your postal code under 'Choose Energy'. These charges represent supply charges only and are not utility charges or taxes.

New Jersey electricity rates

Deregulation in New Jersey: What does it mean?

Simply put, it means you can choose where your electricity comes from.

“New Jersey's deregulation came about as part of a national pattern that began in 1978 with the passage of the Utility Regulatory Policy Act, which was designed to promote renewable and alternative energy, but the basic It also allowed for competition on a generational level,” Andrews said. “Deregulation was very much about opening up competition at the generation level, not at the transmission and distribution level.”

It wasn't until 1999 that the New Jersey State Legislature passed legislation that made energy liberalization possible. With its passage, New Jerseyans now have the ability to choose who generates the electricity (non-switchable) that is transmitted and distributed by their utility companies, based on price, contract length, and renewable content.

New Jersey Power Companies and Power Companies

There are four major electric utilities serving most of New Jersey. they are:

  • Public Service Electricity and Gas, or PSE&G. Andrews said the company provides both electricity and gas in an area that is “basically a straight line between New York City and Philadelphia.”
  • Jersey Central Power & Light serves the Jersey Shore and parts of northwestern New Jersey.
  • Atlantic City Power serves South Jersey, including Atlantic City.
  • Rockland Electric serves parts of the northeastern corner of the state.

While New Jerseyans are locked into these power companies based on where they live, they can choose who generates the electricity that goes to their homes.

What types of electricity plans are offered in New Jersey?

When it comes to power, the choices are very simple.

continue using the utility

Follow the advice of the majority of New Jersey residents and choose to stick with your utility company's generation plan. Utility companies often compete to get lower electricity rates, so you might actually get better energy prices if you don't do anything.

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I don't know what I don't know. Another option is to look into alternative energy generation suppliers to see how they fit with your utility company.

How do I find the cheapest electricity rates in New Jersey?

There are three main considerations to find the best alternative electricity rate: price per kilowatt-hour, contract length, and renewable energy content (such as solar or wind). Here's some advice from NJ Power Switch, the state's website on liberalized energy markets:

“Purchasing energy can potentially save you money on your electric or natural gas utility bill, but this is not always the case. Make sure you understand the contract: the terms, and how the price of the TPS offer compares to the price you currently pay for gas or electricity supply from your electric or gas utility.”

It is your responsibility to investigate the rates you currently pay to your utility company and the rates provided by third-party suppliers. Andrews said other considerations are just as important as price.

“As a homeowner, what I want to be in control of is, yes, I want low prices,” Andrews said. “But you also want to know that prices don't fluctuate too much. Plan ahead and find out how summer and winter prices differ so you're not surprised by big changes like the Europeans encountered. We want to understand.'' Energy shortages due to war in Ukraine and extreme weather in Texas.

“The last thing I want to say is reliability,” Andrews said. “It's important to be able to trust your utility company to not only provide power 99.99% of the time, but also to respond quickly and effectively after a major disaster like a hurricane.” Some of this information is: , can be found in reports from the U.S. Energy Information Administration and the Department of Energy.

What should I look out for when choosing an electricity plan in New Jersey?

Herein lies the problem with deregulated energy markets. Deregulated energy markets tend to attract unscrupulous companies that try to squeeze out potential customers with unclear terms, such as high or low usage charges. In 2014, numerous consumer complaints about utility bill increases led to an investigation by state authorities.

“Always look at things from a 'buyer beware' perspective and look into strange contracts, such as low or high usage rates, or whether there are peak power clauses that can make you pay significantly more per kilowatt. You want to look for a clause, peak hour is one hour,” Andrews said. “Or if the provider can change prices on short notice.”

How to switch in New Jersey

Perhaps one reason why so few New Jerseyans switch energy providers is because it can seem quite difficult to compare the options. His website for NJ Power Switch has a list of licensed third-party suppliers (based on electric company), but there are few tools to easily compare rates like in other states. Instead, you should visit each supplier's website to find their rates, check their terms, and compare them to your utility rates' terms. Once you've found a supplier you like, all you have to do is register on their website. Changes should be reflected on your utility bill within one or two billing cycles.

FAQ

How much does PSE&G cost per kWh in New Jersey?

Prices vary depending on the time of year, especially the season. For the latest rates, visit this page and click on the 'Compare electricity rates' button.

How much will New Jersey's PSE&G's electricity rates increase in 2023?

In February, the New Jersey Public Utilities Commission announced the results of the bid, which would result in “a modest increase in electricity rates for most residents,” according to a press release. This year's interest rate hike is 3.3%, and PSE&G's electricity bill, which was $122.39, increased by $4.09 to $126.48.

Why are electricity bills so high in New Jersey?

Andrews said New Jersey's high electricity bills are due to three factors: First, “New Jersey is at the end of every energy pipeline, and there's nothing underground.” Next, “providing electricity to highly urbanized areas is very expensive due to difficult infrastructure and high labor costs.'' Finally, there is a political issue, with various administrations trying to to prioritize either lower costs, reduced pollution, improved reliability, or a combination of these factors.

Is PSE&G gas or electric?

This large New Jersey electric utility provides both gas and electricity to its customers.



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