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.
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 a bill looks like at this rate
The figures below apply the May 2026 New Jersey average to four usage levels. They are arithmetic, not quotes. A real bill also carries fixed customer charges, taxes and any rider specific to your utility.
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.
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.
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 a typical monthly electric bill in New Jersey?
At the May 2026 average rate of 23.27¢/kWh, a household using 900 kWh a month would pay about $209, and one using 1,500 kWh about $349. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
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.
Where does this New Jersey rate figure come from?
It is the residential-sector average revenue per kilowatt-hour reported by utilities to the U.S. Energy Information Administration on Form EIA-861M and published in the Electric Power Monthly, Table 5.6.A. It blends supply and delivery across every residential customer in the state, so it is a statewide average rather than a quote for any individual household.