NJ electric rates jumped sharply in June 2025, when typical residential bills rose by roughly 17 to 20 percent, largely because of record capacity prices in the PJM regional grid market. Changes on June 1, 2026 were much smaller, ranging from a 1.8 percent decrease for PSE&G customers to a 1.6 percent increase for JCP&L customers. In July 2026, the state added a $25 bill credit for all households, a $150 credit for eligible lower- and moderate-income families and new laws aimed at data centers and utility costs.
Key Takeaways
- 2025 brought the big jump: typical bills rose about 17–20 percent on June 1, 2025.
- 2026 was calmer: June 1, 2026 changes ranged from −1.8 percent to +1.6 percent, depending on your utility.
- A price collar helped: PJM capacity prices were capped at $325 per megawatt-day.
- Every household gets a $25 credit under the Residential Universal Bill Credit announced in July 2026.
- Eligible lower- and moderate-income families receive an additional $150 credit.
- A new law requires data centers to pay for their own energy use and grid infrastructure.
This explainer uses figures from the New Jersey Board of Public Utilities and the Governor’s Office, reviewed in September 2026. Your bill depends on your usage and utility.
What Changed in NJ Electric Rates on June 1, 2026
Each year, New Jersey buys electricity supply for most households through the Basic Generation Service (BGS) auction. The New Jersey Board of Public Utilities (NJBPU) certified the 2026 auction in February, and the new prices took effect on June 1, 2026.
| Utility | Monthly change | Percent change | New average monthly bill |
|---|---|---|---|
| PSE&G | −$3.23 | −1.8% | $180.23 |
| Rockland Electric Company (RECO) | −$1.17 | −0.7% | $168.93 |
| Atlantic City Electric (ACE) | +$0.22 | +0.11% | $201.76 |
| Jersey Central Power & Light (JCP&L) | +$2.23 | +1.6% | $137.47 |
These figures are based on a typical residential customer using 650 kilowatt-hours per month. Households that use more electricity, particularly for air conditioning or electric heat, will see larger dollar changes.
Why NJ Electric Rates Rose So Much in 2025
To understand today’s bills, start with 2025. On June 1, 2025, many New Jersey households saw increases of roughly 17 to 20 percent. The main driver was the capacity market run by PJM Interconnection, the regional grid operator that serves New Jersey and 12 other states plus Washington, D.C.
Capacity payments reward power plants for being available when demand peaks. When PJM’s capacity auction cleared at record prices, those costs flowed into the supply portion of New Jersey bills. Moreover, rising demand from large users, including data centers, and slower growth in new power supply added pressure across the region.
How the price collar limited 2026 increases
For the following auction period, a temporary price collar capped PJM capacity prices at $325 per megawatt-day and set a floor of $175 per megawatt-day. According to the NJBPU, wholesale energy and capacity prices still rose slightly, but the cap helped keep 2026 bill changes small.
How NJ Electric Rates Are Set
Your electric bill has two main parts. The delivery portion pays your local utility to maintain poles, wires and service, and it is regulated by the NJBPU. The supply portion pays for the electricity itself. Most households buy supply through the utility’s default Basic Generation Service, whose price comes from the annual BGS auction.
| Bill component | What it covers | Who sets it |
|---|---|---|
| Supply (BGS) | The electricity you use, including capacity costs | Annual BGS auction, certified by the NJBPU |
| Delivery | Poles, wires, meters and customer service | Utility rate cases approved by the NJBPU |
| Other charges and credits | State programs and bill credits such as the RUBC | State policy and NJBPU orders |
Because the supply price resets each June 1, summer bills are usually when households first notice NJ electric rates changing.
NJ Electric Rates Timeline, 2025–2026
| Date | What happened |
|---|---|
| June 1, 2025 | Typical bills rise roughly 17–20 percent after record PJM capacity prices |
| 2025 | A PJM capacity price collar of $175–$325 per megawatt-day is put in place |
| February 13, 2026 | NJBPU certifies the 2026 BGS auction results |
| June 1, 2026 | New supply prices take effect; changes range from −1.8% to +1.6% |
| July 7, 2026 | $25 universal credit, $150 REAP credit and three energy laws announced |
New Bill Credits for New Jersey Households
On July 7, 2026, Governor Mikie Sherrill announced ratepayer relief alongside new energy legislation. The two bill credits work as follows.
| Credit | Amount | Who gets it |
|---|---|---|
| Residential Universal Bill Credit (RUBC) | $25 | All of New Jersey’s roughly 3.6 million residential electric customers |
| Residential Energy Assistance Payment (REAP) | $150 | Eligible lower- and moderate-income families, in addition to the $25 credit |
Credits are applied through your utility bill, so you do not need to pay anything to receive them. If you believe you qualify for REAP and do not see it, contact your electric utility.
The Three Energy Laws Signed in July 2026
Alongside the credits, the Governor signed three bills designed to lower costs over time.
- Repeal of the ROE adder (S1673/A2757): Ends a 50 basis point bonus on utility return on equity that was tied to participation in a grid operator.
- Advanced Grid Technologies Act (S4411/A5188): Strengthens state review of utility infrastructure spending and offers expedited approval, within 120 days, for projects that use advanced transmission technologies.
- Data Center Fair Share (S731/A796): Creates a separate ratepayer class so data centers pay for their own energy use and grid upgrades, and encourages them to supply clean power and cut demand when the grid is strained.
According to the administration, actions taken over six months add up to about $1 billion in annual savings for ratepayers, based on an analysis by Synapse Energy Economics.
Other Protections and Programs
- Summer Termination Program: The NJBPU renewed protections that help vulnerable households avoid summer shutoffs.
- Universal Service Fund (USF): A long-running state program that helps eligible households lower energy bills.
- LIHEAP: The federal Low Income Home Energy Assistance Program helps with heating and cooling costs.
- Utility payment plans: Utilities offer budget billing and payment arrangements if you fall behind.
How to Lower Your NJ Electric Bill
- Check your usage history on your utility account to spot spikes.
- Use budget billing to spread costs evenly across the year.
- Shift heavy use such as laundry and dishwashing away from hot afternoon peaks.
- Service your HVAC system and replace filters regularly.
- Be careful with third-party supply offers. Compare the price per kilowatt-hour with your utility’s default rate, and watch for variable rates after an introductory period.
- Apply for assistance early if you might qualify for USF, LIHEAP or REAP.
What to Watch Next
Future NJ electric rates will depend on the next BGS auction, PJM capacity prices and how quickly new power supply and transmission come online. The Data Center Fair Share law will also shape how grid costs are divided between households and large users. As a result, 2027 bills could move in either direction, so it is worth watching NJBPU announcements each winter.
Related New Jersey Money Guides
Energy costs are only part of the household budget. See how pay is changing in our guide to the NJ minimum wage for 2026, and read about other state policy changes in our explainer on NJ cocktails to go. For more news explained, visit our NJ News section or the homepage.
Frequently Asked Questions About NJ Electric Rates
Did NJ electric rates go up in 2026?
Only slightly for some customers. On June 1, 2026, changes ranged from a 1.8 percent decrease for PSE&G to a 1.6 percent increase for JCP&L, based on typical usage.
Why did NJ electric bills rise so much in 2025?
Record capacity prices in the PJM regional grid market drove typical increases of roughly 17 to 20 percent on June 1, 2025.
What is the NJ Residential Universal Bill Credit?
It is a $25 credit announced in July 2026 for all of New Jersey’s roughly 3.6 million residential electric customers, applied through utility bills.
Who gets the $150 REAP credit?
The Residential Energy Assistance Payment of $150 goes to eligible lower- and moderate-income families, on top of the $25 universal credit.
It creates a separate ratepayer class so data centers pay for their own energy use and grid infrastructure, and encourages them to supply clean power and reduce demand when the grid is strained.
How can I lower my NJ electric bill?
Track your usage, consider budget billing, shift heavy appliance use away from peak hours, compare third-party supply offers carefully and apply for assistance such as USF or LIHEAP if eligible.
The Bottom Line on NJ Electric Rates
NJ electric rates rose steeply in 2025 but held relatively steady on June 1, 2026, thanks partly to a cap on regional capacity prices. On top of that, every household receives a $25 credit, and eligible families get another $150. New laws on data centers and utility spending aim to keep future increases in check. Meanwhile, the best household strategy is to track your usage, compare supply offers carefully and apply for assistance if you qualify.