Why Is My Electric Bill So High in New Jersey? What Changed and What You Can Do

The Short Answer

New Jersey bills jumped in June 2025 and have stayed high. When the Board of Public Utilities certified the 2025 electricity auction, it projected average monthly bills to rise between 17.23% and 20.20% depending on the service territory, with the increase taking effect on June 1, 2025. The 2026 auction brought much smaller changes, but prices did not come back down.

New Jersey residential prices also sit well above the national average: about 23 to 23.5 cents per kWh in the first five months of 2026, according to EIA data compiled by the Maryland Public Service Commission, against a U.S. average EIA expects to be 18.2 cents per kWh for 2026.

What Drove the Increase

The BPU was direct about the cause in 2025: PJM’s recent capacity auction results are the main driver of these increases. PJM runs the regional grid, and its capacity auction sets what utilities pay to make sure enough power plants are available. For the 2025/2026 delivery year that price cleared at $269.92/MW-day, up from $28.92/MW-day the year before.

In February 2026 the BPU said this year’s results were again driven largely by increases in wholesale energy and the PJM Interconnection (PJM) capacity market, though average residential bill changes were small, ranging from about a 1.8% decrease to a 1.6% increase by utility.

Help With the Bill

• Residential Universal Bill Credit. The BPU ordered a flat credit of $25 applied to residential electric bills in August 2026. In 2025, a one-time $175 credit went to qualifying households under the Residential Energy Assistance Program.
• Universal Service Fund (USF). Provides a monthly credit on eligible customers’ gas and electric bills. You can apply year round.
• LIHEAP (Home Energy Assistance). New Jersey’s program helps very low-income residents with their heating and cooling bills. The program year starts October 1.
• PAGE. For moderate-income households above the LIHEAP limits; the BPU’s assistance chart says qualified applicants may receive up $750 for gas costs and/or $750 for electric costs.
• Payment arrangements. Call your utility before you fall behind; arrangements are easier before a shutoff notice.

Check Your Supply Price

New Jersey lets you buy supply from a third-party supplier. The state’s NJ Power Switch site explains that the Price to Compare is the average cost per kilowatt-hour your utility charges for supply, and that it generally changes on June 1 and October 1.

• Only switch if the offer is below your Price to Compare for the whole contract, not just an introductory period.
• Avoid variable-rate offers without a cap, and check early termination fees.
• If you already use a supplier, check your bill: a contract that rolled onto a variable rate may now cost more than the utility.

Get Paid to Use Less

New Jersey’s utilities now run the state’s main efficiency programs. The BPU approved over $3.75 billion for programs from January 2025 through June 2027, and the state’s Clean Energy Program lists energy efficiency programs available through all seven electric and gas utilities. Look on PSE&G, JCP&L, Atlantic City Electric or Rockland Electric’s site for home energy assessments, rebates on heat pumps and thermostats, and appliance recycling.

Cut Your Own Usage

1. Find where the kWh go. Compare this year’s kWh (not dollars) with the same months last year. If usage is flat, the increase is the rate; if usage rose, look for a cause. A whole-home energy monitor shows usage by circuit.
2. Heating and cooling first. Seal air leaks and check attic insulation before winter; ENERGY STAR’s estimate is an average of 15% on heating and cooling costs for sealing and insulating together. Our drafty rooms checklist covers the DIY part.
3. Thermostat setbacks. Our thermostat settings guide covers what saves and what doesn’t, including heat pump cautions.
4. Electric resistance heat or an old water heater are the biggest single loads in many NJ homes; ask your utility about heat pump rebates.

Tools That Help

We may earn a commission if you buy through these links, at no extra cost to you. Products are chosen on published specifications; we do not test them in-house (how we choose).

Emporia Vue 3 Home Energy Monitor

Circuit-level monitoring, so you can see which loads drive the bill.

Check price on Amazon

Refoss Smart Home Energy Monitor (16 circuit sensors)

A lower-cost circuit monitor with local control.

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3M Indoor Window Insulator Kit

Shrink film for drafty windows over winter.

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Frequently Asked Questions

Why did New Jersey electric bills go up so much?

The BPU projected average bills to rise 17% to 20% from June 1, 2025, and said PJM capacity auction results were the main driver. PJM's capacity price for 2025/2026 rose to $269.92/MW-day from $28.92/MW-day.

Are NJ electric rates going up again in 2026?

The 2026 auction brought small changes, from about a 1.8% decrease to a 1.6% increase in average residential bills depending on the utility, according to the BPU.

What help is available for NJ electric bills?

The Universal Service Fund, LIHEAP (Home Energy Assistance), PAGE for moderate-income households, utility payment arrangements, and the 2026 Residential Universal Bill Credit of $25 applied in August.

Should I switch to a third-party electric supplier in NJ?

Only if the offer is below your utility's Price to Compare for the whole contract. Watch for introductory rates, variable rates and termination fees.

How much more does electricity cost in New Jersey?

EIA data compiled by the Maryland PSC put NJ residential prices around 23 to 23.5 cents per kWh in early 2026, against an EIA-forecast U.S. average of 18.2 cents for the year.

Related Guides

• 2026 electric rate hikes — the national picture
• Smart thermostat settings — setbacks that save
• Best home energy monitors — see where the kWh go
• Electric bill doubled? — when usage is the problem

Sources

• NJ BPU: 2025 electricity auction results (Feb 2025)
• NJ BPU: 2026 electricity auction results (Feb 2026)
• NJ BPU: 2026 Residential Universal Bill Credit order (PDF)
• NJ BPU: Residential Energy Assistance Program (Apr 2025)
• PJM: 2025/2026 capacity auction results
• Maryland PSC: Report on residential retail electricity prices (July 2026, PDF)
• EIA: Short-Term Energy Outlook, electricity
• NJ BPU: Utility energy efficiency programs approved (Oct 2024)
• NJ Clean Energy Program: Energy efficiency
• NJ DCA: Universal Service Fund
• NJ DCA: Home Energy Assistance
• NJ BPU: Assistance program chart (PDF)
• NJ Power Switch: Price to Compare
• ENERGY STAR: Methodology for estimated savings