New Jersey electric suppliers

New Jersey electricity customers who receive service from Jersey Central Power & Light (JCPL), and who are on the utility’s default generation plan, will experience a sharp rate increase beginning on the first of October 2018. The default rate, known as the basic generation service charge, changes twice annually and is derived by a series of auctions that take place as long as three years before the rate actually takes effect. The auctions are spaced out over a three year period as a way to spread out the price volatility that often occurs in wholesale energy markets; in this way default paying customers are not stuck paying high prices due to an auction occurring during a time when wholesale prices were high. However, if current energy prices are lower during the time the default rate is in effect, customers are then presented an opportunity to save money by switching to a lower competitive New Jersey electricity supplier.

Residential JCPL customers on the basic generation service rate will see at most a 13.93% rate increase take effect on October 1, 2018 compared to what they had been paying since the beginning of June. The new higher rate will have the biggest impact on lower usage customers. Since June 1, 2018 JCPL customers on the default rate have paid $0.083846 per KWh for the first 600 KWh they consume in a given monthly service period. This rate then increased to $0.093071 for all kilowatt hours above 600. On October 1 these residential customers will pay a flat rate of $0.095527 for all KWh consumed. The JCPL rate increase can be stopped by simply shopping the New Jersey competitive electricity market for a lower fixed price.

As of July 2018, the New Jersey Board of Public Utilities released electric switch data showing that 16.8% of JCPL’s 999,604 residential customers were purchasing power from a competitive supplier. This data indicates that there are roughly 831,348 residential customers who are on the basic generation service rate, and who can avoid the October 1 price increase and lower their JCPL electric bill by shopping for a lower rate. Below are fixed JCPL electric rates offered by suppliers who have been licensed by the New Jersey BPU.