Shopping for an electricity supplier in New Jersey
Every home on the wires of New Jersey's investor-owned utilities may buy its electricity from a licensed supplier, yet only 6.1%1 of the state's residential customers did so in 2025. Most stay on Basic Generation Service, whose supply price comes from a statewide auction, and that price is the one any supplier's offer has to be measured against.
Northeast region, Middle Atlantic division
Who can shop, and where to compare
New Jersey opened electricity supply to competition under the Electric Discount and Energy Competition Act, signed on February 9, 1999, as the Board of Public Utilities (BPU) explains on its customer rights page. The arrangement splits a bill in two. Your utility, PSE&G, JCP&L, Atlantic City Electric or Rockland Electric, keeps delivering the power, reading the meter and restoring outages. The supply, meaning the electricity itself, can come either from the utility's default service or from a supplier licensed by the BPU.
The state's official shopping site is NJ Power Switch, run by the BPU. The BPU's shopping page lists licensed suppliers by utility territory, and the board also publishes a list of active third-party supplier licenses. The BPU states that shopping "has no impact on the reliability or safety of your service": outages and emergencies are handled by the utility whoever supplies the power.
EIA counted 621 competitive suppliers with residential customers in New Jersey in 2025. The BPU does not set their prices; each supplier sets its own, and the contract decides how long a price lasts.
Only a small share of homes have switched
In 2025, 232,158 New Jersey residential customers bought supply from a competitive supplier, 6.1% of the state total and the 13th highest share among the 50 states and DC. Across the country the figure was 15.1%, pulled up by states such as Massachusetts (63.6%), Ohio (58.1%) and Texas (55.5%). Pennsylvania next door had 22.4%; New York had 7.3% and Delaware 5.6%1.
Source: EIA-861 annual electric power industry report, 2025 final. Residential customers of energy-only suppliers and community choice aggregators (plus Texas retail electric providers) as a share of all residential customers (EIA-861 2025, EIA customer counting: bundled + energy-only + Texas retail provider accounts). Includes municipal or community aggregation where it is reported as energy-only.
Show the numbers
| Area | Customers with a supplier |
|---|---|
| Massachusetts | 63.6% |
| Ohio | 58.1% |
| Pennsylvania | 22.4% |
| Connecticut | 16.3% |
| New York | 7.3% |
| New Jersey | 6.1% |
| Delaware | 5.6% |
Shopping is not spread evenly across the state. EIA's count of homes billed for delivery only, the customers whose supply comes from someone else, gives these shares for 2025:
| Utility | Homes on its wires | Homes buying supply elsewhere | Share |
|---|---|---|---|
| PSE&G | 2,072,339 | 94,117 | 4.5% |
| JCP&L | 1,047,687 | 91,835 | 8.8% |
| Atlantic City Electric | 509,015 | 35,820 | 7.0%1 |
PSE&G has the most customers and the smallest share of shoppers among the three. EIA's figures are annual; the BPU publishes monthly electric switching statistics by utility, such as its September 2026 report.
Basic Generation Service sets the price to beat
Homes that do not choose a supplier receive Basic Generation Service (BGS), New Jersey's default supply. Its supply price comes from an auction. According to the official BGS auction overview, the four utilities buy the supply for residential and smaller business customers in an auction held in early February each year, the BPU rules on the results within two business days, and each year one-third of the load is bought for a three-year period. The default price a household pays is therefore a blend of three auctions held in different years, which spreads any single year's wholesale prices over time.
The supply part of the BGS bill is the Price to Compare. The BPU's NJ Power Switch explanation defines it as the average cost per kWh for generation and transmission, including energy, capacity, line losses and state sales tax, and says it generally changes on June 1 and October 1 each year. It is the figure to set against a supplier's per-kWh price.
What default-service customers paid in total, supply and delivery together, rose sharply in 2025. EIA's annual averages for bundled residential customers, who in New Jersey are the BGS customers:
| Utility | 2024 | 2025 | Change |
|---|---|---|---|
| PSE&G | 20.42¢ per kWh | 25.03¢ per kWh | +22.6% |
| JCP&L | 15.65¢ per kWh | 18.39¢ per kWh | +17.5% |
| Atlantic City Electric | 23.41¢ per kWh2 | 25.84¢ per kWh | +10.4%1 |
These are averages of revenue per kWh, not the Price to Compare: they include delivery, fixed charges and riders. Lawrence Berkeley National Laboratory's 2026 retail price review reports that capacity payments in PJM, the regional grid New Jersey belongs to, added 0.9¢ per kWh3 to average wholesale costs in 2025; the auction is where those wholesale costs are priced into default supply.
Source: EIA-861 annual electric power industry report, 2025 final. EIA-861 2025 final. Average revenue per kWh is all charges divided by kWh; it is not a tariff rate.
Show the numbers
| Utility | average residential price (bundled customers) |
|---|---|
| JCP&L (NJ) | 18.39¢ |
| PSE&G (NJ) | 25.03¢ |
| Atlantic City Electric (NJ) | 25.84¢ |
BGS, supplier and delivery-only customers: the 2025 averages
EIA reports New Jersey's residential market in three parts, each covering different customers or a different part of the bill. In 2025:
- Default service (BGS), supply and delivery: utility full-service customers paid an average of 22.39¢ per kWh.
- Supplier customers, supply only: what suppliers' residential customers paid them for the electricity itself averaged 17.85¢ per kWh, across every supplier, plan and month of the year.
- Supplier customers, delivery only: what the utilities billed those same customers for delivery averaged 6.19¢ per kWh1.
Source: EIA-861 annual electric power industry report, 2025 final. Average revenue per kWh by service part, EIA-861 2025. Supply-only and delivery-only averages each cover only part of a bill and different groups of customers; adding them gives only a rough estimate of what a shopping customer paid in total.
Show the numbers
| Part of the market | ¢/kWh |
|---|---|
| Utility full-service customers (default service): supply and delivery | 22.39¢ |
| Competitive suppliers and CCAs: supply only | 17.85¢ |
| Utility delivery for customers of a supplier: delivery only | 6.19¢ |
The supplier figure is a past average, not an offer, and it averages every contract suppliers held during the year, fixed and variable alike. It cannot be read as what switching would have saved: the supply-only figure is set against the supply portion of a BGS bill, which EIA does not report separately, and the delivery-only figure covers a different, smaller group of homes with its own usage pattern.
Delivery stays with your utility, whoever supplies you
Choosing a supplier does not change who delivers your power or what delivery costs. In 2025, the utilities' delivery revenue per kWh from homes buying supply elsewhere was 4.90¢ per kWh at JCP&L, 6.02¢ per kWh at PSE&G and 10.58¢ per kWh at Atlantic City Electric. Per shopping home that came to $39.87, $30.28 and $66.82 a month for delivery alone, at average use of 814 kWh, 503 kWh and 631 kWh1.
Source: EIA-861 annual electric power industry report, 2025 final. Delivery charges only: what the utility billed customers who buy supply elsewhere, divided by their kWh. Not comparable with bundled prices.
Show the numbers
| Utility | delivery-only revenue per kWh (residential) |
|---|---|
| JCP&L (NJ) | 4.90¢ |
| PSE&G (NJ) | 6.02¢ |
| Atlantic City Electric (NJ) | 10.58¢ |
The direction differed by utility from 2024 to 2025: delivery revenue per kWh from shoppers changed by +15.3% at PSE&G, −7.2% at JCP&L and −2.6%1 at Atlantic City Electric. Delivery rates are approved by the BPU in each utility's tariff, and a supplier's offer leaves them untouched.
Checking an offer against your Price to Compare
The BPU's NJ Power Switch pages set out what to look for. In order:
- Find your utility's current Price to Compare. Compare it with the supplier's price per kWh, not with your whole bill, since the delivery charges stay the same either way.
- Check that the offer includes sales tax. The Price to Compare does; the BPU's shopping page suggests asking whether a supplier's price includes New Jersey sales tax and other fees.
- Ask whether the price is fixed or variable. The BPU's page on prices describes a fixed price as a set price per unit over a period defined by the contract, and a variable price as one that can rise or fall periodically. It advises asking whether a fixed rate can become variable during the term and what happens when the contract or fixed-price term ends.
- Remember that the Price to Compare moves. Because it generally changes on June 1 and October 1, an offer that is below it in one season may not be below it in the next, and your use changes too: New Jersey homes averaged 1,036 kWh in July 2026 and 469 kWh in April 2026, over the 12 months to August 20264.
- Know your exit. The BPU's third-party supplier rights page says that after your utility confirms a switch in writing you have 7 days to tell the utility you have changed your mind, that a supplier must give at least 30 days' written notice before ending your service, and that residential customers are not subject to the one-year minimum that applies to some business customers. Early-termination fees in the contract still apply.
Complaints about suppliers go to the BPU through NJ Power Switch. This site lists no supplier offers and does not recommend suppliers.
New Jersey prices in context
Across all utilities and suppliers, New Jersey homes paid an average of 23.74¢ per kWh over the 12 months from September 2025 to August 2026, 31.6% above the US average and the 12th highest4 among the states; the average bill was $150.595 a month in 2025. The New Jersey state page covers prices, bills and history in full, and the regulated vs deregulated guide compares the two systems across states.
New Jersey electricity choice: common questions
What is the Price to Compare in New Jersey?
It is the supply part of a utility bill: what you pay your utility per kWh for Basic Generation Service, covering energy, capacity, transmission and related costs, with state sales tax included. According to the Board of Public Utilities' NJ Power Switch site, it generally changes on June 1 and October 1 each year. A supplier's offer replaces this part of the bill only; delivery charges stay with your utility.
How many New Jersey homes buy electricity from a third-party supplier?
232,158 residential customers, 6.1% of the state total, bought supply from a competitive supplier in 2025, according to EIA. By utility the share was 8.8% at JCP&L, 7.0% at Atlantic City Electric and 4.5%1 at PSE&G. The Board of Public Utilities publishes its own monthly switching counts.
Can I go back to PSE&G, JCP&L or Atlantic City Electric for supply?
Yes. Your utility is required to supply you under Basic Generation Service if you do not buy from a supplier, and the Board of Public Utilities states that residential customers are not bound by the one-year minimum that applies to some business customers. Any early-termination fee in your supplier contract still applies.
Related pages
Sources
- EIA-861 annual electric power industry report, 2025 final; table Sales_Ult_Cust_2025; 2025, final; released October 7, 2026. www.eia.gov
- EIA-861 annual electric power industry report, 2024 final; table Sales_Ult_Cust_2024; 2024, final (file updated December 3, 2025); released December 3, 2025. www.eia.gov
- Lawrence Berkeley National Laboratory, Retail Electricity Price Trends and Drivers; table July 2026 update; 2025 data. eta-publications.lbl.gov
- EIA, Electric Power Monthly / EIA-861M sales and revenue by state; table sales_revenue.xlsx (EPM Table 5.6.A); January 2001 to 2026-08; months since January 2026 preliminary; released October 23, 2026. www.eia.gov
- EIA-861 2025, average monthly bill by state; table Average_Bill_2025; 2025, final; released October 7, 2026. www.eia.gov
How every figure is built: methodology. Found an error? Write to [email protected]; corrections are listed on the updates page.