New Jersey

In order to get fair apples to apples electricity rate comparisons in New Jersey it is important to understand a little bit about electric choice in the state.

The New Jersey electric choice act unbundled the incumbent electric utilities that once served as monopolies for their customers.  New Jersey has four incumbent utilities:  PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric.

These four electric companies still service their customers, but now only as the local utility and not as a competitive electricity supplier.  This means that the incumbent utility is still in charge of delivering the power to your home or business, as well as maintaining the electric lines and wires.  In most cases they will also continue to send you your monthly electric bill.

Electricity supply, or generation, is what has been deregulated and is what customers get to choose.  They can choose to sign a fixed rate for a few months or few years, a variable rate, or even wind power.

If you haven’t yet shopped for competitive electric rates then you are paying a default supply rate with your utility company.  In New Jersey this default rate is called the basic generation service rate.  The basic generation service rate is determined by a series of auctions that the New Jersey Board of Public Utilities holds for competitive electric companies.  In theory, even if you haven’t selected an alternative electric supplier, you are already buying your power from an alternative supplier through the basic generation service default rate.  PSEG, JCPL, Atlantic City Electric, and Rockland Electric do not profit from the supply default rates, they simply pass it through to the competitive electric suppliers who successfully bid for the right to serve default customers.  You can find lower competitive electric rates by comparing and shopping on your own.

The generation rates are made up of a number of small charges.  When comparing offers you need to make sure that all offered rates include the entire “electric supply” portion of the bill.  This is particularly true for small businesses as many electricity companies will offer electric rates that do not include all of the supply charges, and instead pass through the additional charges to other sections on the bill.  All electric rates on this site are apples to apples comparisons of each other and include all supply charges.