Newark Electric Company & Electricity Rates Guide

A Newark homeowner opening her first bill after moving from out of state might be surprised to see two distinct charges: one for delivery, one for supply. That split is intentional, and understanding it is the key to managing what you pay.

PSE&G (Public Service Electric and Gas Company) is the electric utility that serves Newark and most of northeastern and central New Jersey. PSE&G owns and maintains the poles, wires, and meters that physically bring electricity to your home or business. That delivery infrastructure is regulated by the New Jersey Board of Public Utilities (NJBPU), and you cannot choose a different delivery provider. PSE&G is your utility, full stop.

What you can choose is where the electricity itself comes from. That is the supply side of your bill, and in New Jersey, the market is open to competition. You can stay on PSE&G's default supply option, called Basic Generation Service (BGS), or you can enroll with a licensed third-party electric supplier. Your delivery stays with PSE&G either way.

As of June 2026, PSE&G's Basic Generation Service (BGS) rate is approximately 19.9 cents per kWh on the supply portion of your bill. BGS rates are set through a competitive auction process overseen by the NJBPU, and they reset periodically, so the figure you see on your bill today may differ from what you see six months from now.

For context, 19.9 cents per kWh on supply is on the higher end among New Jersey's four investor-owned utilities. If your household uses around 700 kWh per month (close to the New Jersey average), the supply portion of your PSE&G bill at the BGS rate runs to roughly $139 per month before delivery charges, taxes, and fees are added. That total bill will be noticeably higher, but the supply charge is the piece you can actually shop.

Visit ElectricRates.org's New Jersey page for live BGS rate updates as the NJBPU posts them.

Yes, and the math is more favorable here than in several other parts of the state. As of June 2026, the lowest competitive supplier rate available in PSE&G territory is around 17.6 cents per kWh, compared to the BGS rate of 19.9 cents. That gap works out to roughly 11 percent savings on the supply portion of the bill.

On a 700 kWh monthly usage, 11 percent off supply translates to about $15 per month or $180 per year. That is real money, and it requires nothing more than enrolling with a licensed supplier. PSE&G continues to deliver your electricity without interruption.

For comparison, consider how Newark's situation stacks up against other New Jersey utilities:

Atlantic City Electric territory: BGS is approximately 18.2 cents/kWh; lowest supplier is around 16.7 cents, about 8 percent savings on supply.

JCP&L territory: BGS is approximately 14.6 cents/kWh; the lowest supplier offers come in around 16.0 cents, meaning BGS is actually cheaper. Switching would cost JCP&L customers money right now.

Rockland Electric territory: BGS is approximately 18.8 cents/kWh; supplier offers hover around 18.9 cents, with very few options available. Effectively no savings opportunity.

Newark sits in PSE&G territory, which currently offers the clearest opportunity for savings in the state. Rates shift, though. Always confirm current figures at ElectricRates.org before you sign anything.

The NJBPU licenses all competitive electric suppliers operating in New Jersey, and it publishes a price-to-compare tool on its website so residents can see current offers side by side. That is a good starting point.

When you review supplier offers, keep a few things in mind:

Fixed vs. variable rates. A fixed-rate plan locks your supply price for the contract term, typically 6 to 24 months. A variable rate can move up or down with market conditions. Variable rates sometimes start lower but carry more risk, especially heading into high-demand seasons.

Contract length and exit fees. Some suppliers charge an early termination fee if you cancel before the contract ends. Read those terms before signing.

Renewable content. New Jersey has renewable energy goals, and some suppliers offer plans sourced partly or entirely from wind and solar. If that matters to your household, check the fuel mix disclosure.

Introductory rates. A supplier might offer an attractive rate for the first few months, then roll you onto a higher variable rate. Confirm what the rate becomes after any promotional period.

Your PSE&G account number is all you need to switch. The supplier handles the enrollment, and PSE&G processes the transfer. You will not lose power during the switch.

A PSE&G bill can look confusing at first, but it breaks down into a handful of categories.

Supply charges: This is what you pay for the electricity itself, either at the BGS rate or a competitive supplier's rate. It is the only part of your bill that changes when you switch suppliers.

Delivery charges: These cover PSE&G's infrastructure costs, including transmission lines, local distribution, and meter reading. Delivery charges are regulated by the NJBPU and are the same regardless of which supplier you use.

Societal benefit charges and taxes: New Jersey bills include charges that fund programs like the Universal Service Fund (USF) and New Jersey's Clean Energy Program. These are fixed by state policy.

Taxes and fees: Sales tax and municipal fees appear at the bottom of most bills.

When you shop suppliers, you are only affecting the supply line. Delivery, taxes, and program charges stay exactly the same. This is why it is important to compare the supply rate (cents per kWh) directly against the BGS rate rather than comparing total bill amounts from different months, which can vary for weather or usage reasons.

Newark has a significant share of households with lower incomes, and several programs exist to reduce electric costs for qualifying residents.

Universal Service Fund (USF): Administered by the NJBPU, USF caps energy costs as a percentage of household income for income-qualified customers. It appears as a credit on your PSE&G bill. Contact the NJBPU or PSE&G directly to apply and confirm current eligibility thresholds.

LIHEAP (Low Income Home Energy Assistance Program): A federally funded program that provides one-time bill credits to qualifying households. In New Jersey, LIHEAP is administered through the Department of Community Affairs. Applications typically open in the fall for the heating season, but check with your local community action agency for current dates and eligibility rules.

PSE&G's own assistance programs: PSE&G offers several customer assistance programs, including payment arrangements and budget billing options that spread costs across the year. Contact PSE&G customer service or visit their website for details.

If you are unsure which programs you qualify for, the NJBPU's customer assistance resources are a good first stop.

New Jersey has an ambitious clean energy agenda, and Newark residents have a few paths to access renewable electricity.

Competitive suppliers with green plans: Several licensed suppliers in PSE&G territory offer plans backed by renewable energy certificates (RECs) tied to wind or solar generation. These plans sometimes cost a bit more than the cheapest available rate, but they let you support renewable generation without installing anything on your roof.

Community solar: New Jersey's community solar program allows residents to subscribe to a share of an off-site solar project and receive credits on their PSE&G bill. This is an option for renters and homeowners alike. The NJBPU oversees the program and publishes a list of approved projects. Availability and savings vary by project.

Rooftop solar: PSE&G territory qualifies for net metering, which credits solar customers for excess generation sent back to the grid. New Jersey's Clean Energy Program offers additional incentives. An installer familiar with NJBPU rules can walk you through current incentives and whether your home or building qualifies.

For the most current list of licensed green suppliers and community solar projects available in Newark, check with the NJBPU or use ElectricRates.org to filter offers by fuel type.

Because Newark sits entirely within PSE&G's service territory, your supply rate situation is specific to that utility. Here is a quick side-by-side of where PSE&G stands relative to the other three New Jersey investor-owned utilities as of June 2026.

PSE&G (Newark and most of northeastern/central NJ): BGS approximately 19.9 cents/kWh. Lowest competitive supplier approximately 17.6 cents/kWh. Potential supply savings: about 11 percent.

Atlantic City Electric (southern NJ): BGS approximately 18.2 cents/kWh. Lowest supplier approximately 16.7 cents/kWh. Potential supply savings: about 8 percent.

JCP&L (parts of central and northern NJ): BGS approximately 14.6 cents/kWh. Lowest supplier approximately 16.0 cents/kWh. BGS is cheaper; switching would increase costs.

Rockland Electric (small slice of northwest NJ): BGS approximately 18.8 cents/kWh. Supplier offers approximately 18.9 cents/kWh. Effectively no savings opportunity and very limited supplier availability.

The picture is clear: if you live in Newark, PSE&G's BGS is currently the most expensive of the four utilities, and the competitive market gap is large enough to make shopping worthwhile. The situation can shift as BGS auction results update and suppliers adjust their offers, so confirm current rates at ElectricRates.org before making a decision.

Cutting your electric bill in Newark does not require a major lifestyle change. Here is a straightforward checklist.

First, pull out a recent PSE&G bill and find your supply rate and monthly usage in kWh. That usage number is the basis for any savings calculation.

Second, check current competitive supplier offers at ElectricRates.org or the NJBPU's price-to-compare tool. Filter for fixed-rate plans if you want cost predictability.

Third, read the contract terms carefully, including the rate after any introductory period, the contract length, and any early termination fee.

Fourth, if you believe you may qualify for USF, LIHEAP, or another assistance program, contact the NJBPU or PSE&G before switching. Some program credits interact with supplier enrollment, and you want to keep any benefits you are entitled to.

Fifth, mark your calendar for when your supplier contract expires so you can reassess rates before it auto-renews at a potentially higher variable rate.

None of this is complicated. The New Jersey electricity market was opened specifically so customers like Newark residents could benefit from competition. The savings opportunity in PSE&G territory is real right now, and taking an hour to compare offers could put a meaningful amount of money back in your pocket over the course of a year.