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New Jersey

New Jersey energy rates

New Jersey, along with several other states including New York, Massachusetts, and Texas, is a deregulated state. Energy deregulation gives customers the freedom to choose a default New Jersey electric company or third-party electric supplier.

New Jersey offers a variety of plans including fixed-rate, which offers the same supply rate throughout the year, and variable plans with the potential for different seasonal rates. Another factor of New Jersey energy is the energy contract length. Contracts can be as short as month-to-month or as long as three years. For customers interested in renewable energy, New Jersey’s renewable portfolio standard was updated in 2018 to require that 21% of the electricity sold in the state be generated from renewable sources by 2021.

Understanding deregulation in New Jersey

The United States launched the Energy Policy Act in 1992 to ensure residents and businesses had the power to choose their energy supplier.  Before deregulation, the supply and delivery of energy were combined into one cost. In 1999, New Jersey moved to deregulate the state’s electricity and gas, thus separating the supply and delivery portions into two separate entities. This results in consumers having the ability to choose their New Jersey electric company.

Energy deregulation works to eliminate monopolies by creating a wider and more competitive energy market for customers to choose what supplier best fits their electric and gas needs. The New Jersey Board of Public Utilities monitors the rates and regulations to ensure utility services are offered at fair rates to New Jersey residents.

Energy plans in New Jersey

Before selecting NJ energy suppliers, it’s important to fully understand your power to choose. Choose Energy’s mission is to help you figure out your best options by providing educational guides, clear information, and easy-to-use tools. Our must-read resources will help you confidently shop and select the right energy supplier.

  • How long does it take to switch energy providers? Switching energy providers in a deregulated area can be completed in just a few easy steps. Just enter your ZIP code, filter the results based on your energy needs, and sign up online or via phone.
  • Which is the right electricity plan for me?  To fully understand and evaluate plans, it’s important to know all of the energy plan lingo involved in deregulated NJ electric rates, including types of plans, contract length, and green energy options.
  • Is a deposit required for my energy plan? Not all energy plans require a deposit. If you have a credit score that needs improvement, no deposit plans are available.
  • How can I lower my electric bill? There are many ways to lower your energy usage and bill including switching to a new provider, investing in energy-efficient appliances, and opting for a renewable energy plan.
  • What is the difference between a fixed-rate, variable-rate, and prepaid plan? Due to seasonal differences, the average electric bill NJ commands will most likely vary. Fixed rate plans are the most traditional energy plans offering high stability and a more consistent monthly price point because of the set electricity supply rate; variable-rate plans are based on energy market prices and can fluctuate. Prepaid plans require payment upfront each month, usually at higher rates.
  • Are there different renewable energy plans? New Jersey offers a variety of renewable energy options. These “green energy” plans include 100% renewable energy, renewable energy credits, carbon offsets, and buyback programs.
  • What happens if you don’t buy from a supplier? You are not required to purchase a deregulated plan from a third-party supplier. If you choose not to, your electricity and natural gas will be supplied by your local utility company at its default monthly rate.

New Jersey energy companies

Atlantic City Electric, Jersey Central Power & Light, Public Service Electric & Gas, and Rockland Electric are the four main electric utilities in New Jersey. Also, New Jersey has four main gas utilities: Elizabethtown Gas, New Jersey Natural Gas, Public Service Electric & Gas, and South Jersey Gas.

A utility company is responsible for successfully delivering electricity to your home or business by maintaining power lines, poles, meters, and energy infrastructure.

Due to deregulation, there are multiple NJ electric suppliers and natural gas suppliers available, including Constellation Energy and Direct Energy. All third-party New Jersey electric company suppliers are licensed and approved by the New Jersey Board of Public Utilities.

Find the right energy plan with Choose Energy

Since 2008, Choose Energy has worked to make energy choices clear and simple for everyone. We work with trusted New Jersey electric company (and gas) providers to bring you reliable energy plans at competitive rates.

Sign up for your new energy plan in three simple steps:

  1. Enter your ZIP for a list of plans, providers, and rates in your service area with our no-cost marketplace.
  2. Filter and compare results to find the right provider to meet your energy needs.
  3. Easily select a plan by signing up online or via phone.

Updated: 8/3/2020

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