Latest Jersey Electricity Bills: A Summer of Stability, But Affordability Concerns Remain
New Jersey residents can breathe a slight sigh of relief as electricity rates are expected to remain largely stable this summer, starting June 1st. The New Jersey Board of Public Utilities (NJBPU) recently certified the results of the 25th annual Basic Generation Service (BGS) auction, which determines the cost of electricity supply for most homes and small businesses. However, affordability remains a key concern, with Governor Mikie Sherrill prioritizing measures to preserve costs down.
Who Sees Savings – and Who Doesn’t?
The auction results indicate a mixed bag for customers depending on their utility provider. PSE&G customers are poised to see a modest decrease in their bills, while JCP&L customers will experience a slight increase. Atlantic City Electric and RECO customers will also see minor changes. Here’s a breakdown for average residential customers using 650 kWh per month:
- Atlantic City Electric: Increase of $0.22 (0.11% increase)
- JCP&L: Increase of $2.23 (1.6% increase)
- PSE&G: Decrease of $3.23 (1.8% decrease)
- RECO: Decrease of $1.17 (0.7% decrease)
It’s vital to note that these figures represent changes to the supply cost only. The total bill will also include other charges.
The Role of the PJM “Price Collar”
While wholesale energy and capacity costs have risen, a “price collar” adopted in 2025 helped to mitigate sharper increases. This mechanism, championed by New Jersey and other states, caps capacity prices at $325 per megawatt-day, preventing potentially significant spikes in electricity costs. The BGS auction secured approximately 7,600 megawatts of supply through this process.
Governor Sherrill’s Push for Affordability
Governor Sherrill has made electricity affordability a central tenet of her administration, declaring a state of emergency on utility costs in January. Following the BGS auction results, she emphasized her commitment to implementing price caps and providing bill credits to offset any increases. The NJBPU is currently working to implement these measures through Residential Universal Bill Credits.
“Affordability is my top priority,” Governor Sherrill stated. “I’m using every tool at my disposal to drive costs down.”
Utilities Respond to Auction Results
Utility companies acknowledge the financial pressures faced by customers and emphasize that they do not profit from supply costs, which are passed directly to consumers. They are committed to investing responsibly and providing safe, reliable service while keeping bills as low as possible. JCP&L is actively working to enroll customers in assistance programs.
The Bigger Picture: Long-Term Solutions
Experts suggest that while the BGS auction provides short-term stability, long-term solutions are needed to address the underlying causes of high energy costs. Solar Landscape CEO Shaun Keegan highlighted the need for increased in-state energy generation, particularly through commercial rooftop solar, to strengthen the grid and lower costs.
“While this week’s BGS auction delivered relatively modest changes for ratepayers, it also highlights how much New Jersey is relying on temporary market measures to keep rates stable,” Keegan said.
FAQ: New Jersey Electricity Rates
Q: What is the BGS auction?
A: The Basic Generation Service auction determines the price utilities pay for electricity supply on behalf of their customers.
Q: Will my bill definitely be lower?
A: It depends on your utility provider. PSE&G and RECO customers may see a decrease, while JCP&L and Atlantic City Electric customers may see a slight increase. The total bill will also include other charges.
Q: What is the “price collar”?
A: A mechanism that caps capacity prices to prevent significant spikes in electricity costs.
Q: What is the state doing to help with affordability?
A: Governor Sherrill has declared a state of emergency on utility costs and is implementing measures such as bill credits and price caps.
Did you recognize? New Jersey has held an annual BGS auction for 25 years to ensure competitive electricity pricing for residents and businesses.
Pro Tip: Explore energy assistance programs offered by your utility provider and the state to help manage your bills.
Want to learn more about energy efficiency and saving money on your electricity bill? Visit the New Jersey Board of Public Utilities website for resources and information.
