New Jersey electricity rates
As of May 2026, the average residential electricity rate in New Jersey is 23.27 cents per kilowatt-hour, 26.2% above the U.S. average of 18.44¢. That is the 13th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +13.6% from 20.48¢ in May 2025
- Vs. U.S. average
- +26.2% U.S. average 18.44¢
- National rank
- #13 of 51 · #39 cheapest
- Supply market
- PJM Retail choice statewide
Why New Jersey pays what it pays
New Jersey buys default supply through the Basic Generation Service auction, an annual competitive process whose results are approved by the Board of Public Utilities and then applied to bills. The 2025 and 2026 auctions cleared substantially higher than their predecessors, and the reason sits one level up, in PJM's capacity market.
PJM pays generators to be available, not just to produce, and the auction that sets those payments cleared at record levels for the 2025/2026 and 2026/2027 delivery years. Demand growth from data centres, retirements of older fossil plants, and slow interconnection of new resources all tightened the reserve margin, and the price responded. Every PJM state absorbed some version of that increase. New Jersey, Maryland, Ohio, Illinois, Pennsylvania and the District of Columbia all show it in the same year.
New Jersey compounds it with high delivery costs: dense suburban distribution, aggressive storm hardening after Sandy, and a societal benefits charge funding efficiency and solar programmes.
Where New Jersey power comes from
New Jersey generated 61 TWh in 2025, the 29th largest output of any state. Natural gas supplied 48.6% of it. Renewables accounted for 3.3%, against 23.8% nationally, which ranks New Jersey #50 of 51.
- Natural gas 48.6% 30 TWh
- Nuclear 45.9% 28 TWh
- Solar 3.3% 2 TWh
- Other 2% 1 TWh
Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.
How New Jersey compares
New Jersey ranks #13 of 51 jurisdictions by residential price, making it the 39th cheapest. Within the Middle Atlantic division, 1 of 2 neighbouring states are cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Pennsylvania | 21.55 | +11.7% | #16 |
| New Jersey | 23.27 | +13.6% | #13 |
| New York | 29.93 | +12.1% | #3 |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.
What New Jersey households actually pay
New Jersey looks cheaper on paper than it is in practice. It has the 39th cheapest rate in the country but only the 21st highest bill from the bottom, because households there use 672 kWh a month against a national average of 871. See how every state compares on bills.
Estimate your New Jersey bill
Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
Heating in New Jersey: gas, heat pump or resistance
Residential natural gas in New Jersey averaged $13.21 per thousand cubic feet in 2024, about $1.27 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.
In New Jersey, gas remains cheaper to run than a heat pump by about $8.57 per million BTU at these assumptions, roughly $514 over a 60 million BTU season. A heat pump can still be the better purchase once cooling, equipment age and incentives are counted, but not on heating cost alone.
Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.
What each New Jersey utility charges
The statewide average hides a wide spread. Across the 10 New Jersey utilities reporting to the EIA, rates run from 15.24¢ at SunPower Capital, LLC to 23.41¢ at Atlantic City Electric Co . Together they serve 3.6 million residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| Public Service Elec & Gas Co | 20.42 | $115 | 566 | 2.0 million |
| Jersey Central Power & Lt Co | 15.65 | $124 | 791 | 964,802 |
| Atlantic City Electric Co | 23.41 | $148 | 633 | 472,020 |
| Rockland Electric Co | 21.04 | $195 | 928 | 63,679 |
| Sunrun Inc. | 18.07 | $113 | 628 | 45,019 |
| Sunnova | 19.04 | $132 | 695 | 30,079 |
| City of Vineland | 17.84 | $137 | 767 | 22,774 |
| Tesla Inc. | 17.63 | $90 | 511 | 10,055 |
| Spruce Finance | 16.14 | $105 | 649 | 6,250 |
| SunPower Capital, LLC | 15.24 | $131 | 861 | 5,666 |
Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.
Who sells electricity in New Jersey
Public Service Electric & Gas is the largest utility, with Jersey Central Power & Light (FirstEnergy) and Atlantic City Electric (Exelon) covering the rest. All are wires-only for residential purposes, since generation was divested during restructuring.
Retail choice is available statewide through the Third Party Supplier market, and the state publishes a comparison of offers against the current BGS price.
New Jersey sits in The PJM region. The wholesale market whose capacity auction repriced and pushed residential rates up across nine jurisdictions in a single year. Read the regional analysis.
What you can actually do about it
The BGS price changes on 1 June each year. That date, not January, is the meaningful one for a New Jersey household planning around rates.
Because the increase is coming through supply rather than delivery, switching to a fixed-price third-party contract is a genuine hedge in New Jersey in a way it is not in a delivery-driven state. Check that the contract is fixed for a real term and carries no cancellation fee.
Closest states by price
These jurisdictions charge within a fraction of a cent of New Jersey, which is useful if you are comparing a move or a multi-state operating cost.
New Jersey electricity rates: common questions
What is the average electricity rate in New Jersey?
The average residential electricity rate in New Jersey is 23.27 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is +26.2% relative to the national average of 18.44¢/kWh.
How much is the average monthly electric bill in New Jersey?
The average New Jersey household paid $160 a month across the twelve months to May 2026, using an average of 672 kWh. That is +2.9% against the U.S. average bill of $155, and it ranks 21st highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.
Why is the New Jersey bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. New Jersey ranks #13 of 51 on price but 21st on the actual bill, because households there use about 672 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
Have electricity rates in New Jersey gone up?
New Jersey rates rose 13.6% over the year to May 2026, from 20.48¢ in May 2025 to 23.27¢.
Can I choose my electricity supplier in New Jersey?
Retail choice statewide. Residential customers in New Jersey can buy supply from a competitive provider while the local utility continues to deliver it and maintain the wires.