New Jersey deregulated its energy markets in 1999, allowing people to choose which company produces the electricity that goes to their homes. The idea behind the law was to introduce competition into what was previously a monopoly in the energy market.
New Jersey residents didn’t exactly take advantage of this opportunity. 6% of residential customers converted. In 2023.
“Not everyone is eager to take advantage of the transition opportunity,” he said. Clinton AndrewsHe is a professor of urban planning and policy development at Rutgers University and director of the institute. Center for Urban Policy Research (Research contract with the New Jersey Public Works Commission).
Let us help you find the lowest electricity rates in your area.
But if you have the patience to shop around between suppliers, you can find some good deals (or at least switch to renewable energy sources). Read on to learn more about New Jersey’s energy deregulation.
Shop for electricity in New Jersey
The table below shows the current prices to compare (standard rates offered by public service companies) and the price range of options available through: Choose your energyIt is owned by the same parent company as CNET.
Let us help you find the lowest electricity rates in your area.
All rates shown are accurate as of August 16, 2024 for the ZIP codes listed for each utility. CNET staff updates these rates regularly, but they may have changed since the last update. Enter your ZIP code to see the most up-to-date rates for your area. Choose your energy. This rate only represents the cost of supply and does not include delivery costs or taxes for public services.
Electricity rates in New Jersey
Deregulation in New Jersey: What Does It Mean?
Simply put, it means you can choose where your electricity comes from.
“New Jersey’s deregulation was part of a national pattern passed in 1978. Public Works Regulatory Policy Act“It was meant to encourage renewables and alternative energy, but it basically allowed competition at the generation level,” Andrews said. “Deraregulation emphasized opening up competition at the generation level, and not really at the transmission and distribution level.”
It wasn’t until 1999 that the New Jersey Legislature passed the bill. Energy deregulation. With the passage of this bill, New Jersey residents will be able to choose a utility provider that produces, transmits and distributes their electricity (non-switchable) based on price, contract term and renewable energy content.
New Jersey Utility vs. Electric Supplier
There are four major utilities that serve most of New Jersey. They are:
- Public Service Electric & Gas, or PSE&G, provides both electric and gas in an area that is “basically a straight line between New York City and Philadelphia,” Andrews said.
- Jersey Central Power and Light operates along the Jersey Shore and parts of northwestern New Jersey.
- Atlantic City Electric provides power to South Jersey, including Atlantic City.
- Rockland Electric provides power to parts of the northeastern part of the state.
New Jersey residents are tied to a utility provider based on where they live, but they can choose who produces the electricity that is delivered to their homes.
What types of electric rates are available in New Jersey?
When it comes to electricity, your options are pretty simple.
Come with your utility
Join the majority of New Jersey residents and choose to stick to your utility provider’s power plan. Since utility providers often compete to offer lower prices for electricity, doing nothing can actually result in better energy prices.
Shop in the Marketplace
You don’t know what you don’t know. Your other option is to look into alternative energy generation providers and see how they match up with your utility.
How do I find the cheapest electricity rates in New Jersey?
There are three main considerations when looking for the best alternative electricity rate: the price per kilowatt hour, the length of the contract, and the renewable content of the energy (e.g. solar or wind). Here’s some advice from: NJ Power SwitchMain website for deregulated energy markets:
“Energy shopping can save you money on your electric or natural gas utility bills, but not always. Before agreeing to switch to a third-party supplier, you should be familiar with the TPS pricing structure, important contract terms, and how the TPS pricing offer compares to the price you currently pay for your gas or electricity from your electric or gas utility.”
It is your responsibility to research what you are currently paying for your utility and what third-party providers are offering. Andrews said other considerations are just as important as price.
“As a homeowner, what I want to manage is, yes, I want low prices,” Andrews said. “But I also want to make sure that prices don’t fluctuate too much, and I want to be able to plan ahead and understand how my summer rates are going to differ from my winter rates.” That way, you won’t be surprised by big swings like when Europeans had energy shortages due to the war in Ukraine or Texas had extreme weather.
“The last thing I want to mention is reliability,” Andrews said. “It’s important to make sure that your electric utility can not only provide power 99.99% of the time, but also respond quickly and effectively after a major disaster like a hurricane.” Some of this information can be found in the report. U.S. Energy Information Administration and Department of Energy.
What should I consider when choosing an electric rate plan in New Jersey?
The problem with deregulated energy markets is that they tend to attract dishonest companies that try to exploit potential customers with unclear terms and conditions, such as high or low usage charges. In 2014, there were a significant number of consumer complaints about energy rate increases. inspection By government agencies.
“Always take a ‘buyer beware’ approach and look for strange contract clauses, such as low or high usage fees, or peak power clauses that state you will be charged significantly more per kilowatt-hour during peak hours,” Andrews said. “Or the ability of the supplier to change prices at short notice.”
How to switch in New Jersey
Perhaps one of the reasons New Jersey residents switch energy providers so rarely is because comparing options can seem a bit daunting. NJ Power Switch offers List of Licensed Third Party Vendors There are few tools that allow you to easily compare rates on the website (depending on your utility), but there are few tools that allow you to easily compare rates that you might find in another state. Instead, you have to visit each provider’s website, look at their rates, review their terms, and compare them to your utility. Once you find a provider you like, simply register with their website. Changes will be reflected on your utility bill within one or two billing cycles.
Frequently Asked Questions
How much does PSE&G charge per kWh in New Jersey?
Rates vary throughout the year, especially seasonally. Current rates are as follows: Visit this page Then click the “Compare Electricity Prices” button.
How much will New Jersey PSE&G’s electric rate increase be in 2023?
The New Jersey Public Utilities Commission announced the results of an auction in February that “will result in slightly higher electricity costs for most residents.” press releaseThis year’s rate increase is 3.3%, which means PSE&G’s electric bill, which was $122.39, will increase by $4.09, to $126.48.
Why is electricity so expensive in New Jersey?
Andrews said electricity in New Jersey is expensive for three reasons. First, “New Jersey is at the end of every energy pipeline. There’s nothing in the ground.” Second, “the difficulty of building infrastructure and the high cost of labor make it expensive to provide electricity to highly urbanized areas.” The last factor is a political one. Each administration will prioritize lower prices, lower pollution, improved reliability, or some combination of these factors.
Is PSE&G gas or electric?
This large utility company in New Jersey supplies both gas and electricity to its customers.
