What Is the Average Electric Bill in New Jersey?

Electricity bills can fluctuate significantly, making it challenging to predict monthly expenses. Understanding the factors that influence these charges and typical costs in a specific region helps individuals manage household budgets and make informed decisions about energy consumption.

The Average Electric Bill in New Jersey

New Jersey residents experience a range in their monthly electric bills. As of June 2025, residential electric rates across the state are projected to increase by 17% to 20%. For a typical residential customer using around 650 kilowatt-hours (kWh) per month, the average monthly electric bill is expected to be approximately $135 to $190, depending on the utility provider, representing an increase of about $22 to $28 per month for such a household. The overall average residential electricity rate in New Jersey is around $0.20 per kWh, but this is projected to rise to approximately $0.26 per kWh with the upcoming rate adjustments. This places New Jersey’s electricity rates among the higher in the nation.

Factors Influencing Your Electric Bill

Several elements contribute to the variability of an individual’s electric bill. The size and age of a home play a role, with larger or older properties often requiring more energy for heating and cooling due to less efficient insulation or outdated systems. The effectiveness of a home’s insulation, windows, and overall air sealing directly impacts how much energy is needed to maintain comfortable indoor temperatures.

Energy consumption habits also affect monthly charges. Adjusting thermostat settings, minimizing the use of energy-intensive appliances during peak hours, and unplugging electronic devices when not in use can lead to noticeable savings. Electronic devices, even when turned off but still plugged in, can draw power, contributing to what is sometimes called “vampire drain.” Seasonal changes also influence electricity usage, with extreme temperatures in summer and winter driving up demand for air conditioning and heating.

Understanding Your Electric Bill Components

An electric bill in New Jersey is divided into two primary categories of charges: supply and delivery. The supply charge represents the cost of the electricity itself, which is the energy consumed by the household. In New Jersey’s deregulated energy market, customers have the option to purchase their electricity supply from their local utility company or from a third-party energy supplier. Choosing a third-party supplier might offer different rates or plans, but the delivery of electricity remains with the local utility.

The delivery charge covers the costs associated with transmitting electricity from power plants to your home, maintaining the power lines and grid infrastructure, and providing customer services. These charges are regulated and collected by the local utility company, regardless of the chosen electricity supplier. Other fees include taxes or a societal benefits charge (SBC). The SBC is a non-bypassable charge, typically around 3% of a customer’s energy bill, that supports various public benefit programs such as low-income energy assistance, energy efficiency initiatives, and renewable energy development.

New Jersey’s Electric Utility Providers

New Jersey’s electric services are primarily managed by a few major utility companies. These include Public Service Electric and Gas (PSE&G), Jersey Central Power & Light (JCP&L), and Atlantic City Electric (ACE). PSE&G serves a large portion of central and northern New Jersey, including its largest cities. JCP&L provides electricity to central and northern parts of the state. Atlantic City Electric is the primary supplier for southern New Jersey.

Additionally, Rockland Electric (RECO) serves customers in northeastern New Jersey, near the New York border. While all these utilities operate under the oversight of the New Jersey Board of Public Utilities (BPU), slight variations in base rates or specific charges can exist between them.