New Jersey Electricity Procurement
High costs, high competition, and offshore wind on the horizon
Also available: Natural Gas Procurement in New Jersey
The New Jersey Electricity Market
New Jersey consistently ranks among the highest electricity cost states, but its robust competitive market and aggressive clean energy agenda create real opportunities for sophisticated buyers. The state's commitment to offshore wind will reshape the supply stack over the coming decade.
Grid Operator: PJM
PJM Interconnection
Retail choice since: 1999
Key Market Concepts
Understanding these terms is essential for navigating New Jersey's electricity market:
New Jersey's default electricity supply, procured through annual auctions. The BGS auction results set the benchmark that competitive suppliers must beat.
A non-bypassable charge funding energy efficiency, renewables, and low-income programs. This cost cannot be avoided by switching suppliers.
Credits from New Jersey's committed offshore wind projects. The cost recovery mechanism for these projects will add costs to all ratepayers.
Payments to keep New Jersey's nuclear plants operating, recovered through ratepayer charges. A significant non-bypassable cost component.
What Makes New Jersey Unique
High Default Rates
BGS prices are typically well above market, creating strong incentive to shop—but non-bypassable charges limit savings potential.
Offshore Wind Impact
New Jersey has committed to 11 GW of offshore wind by 2040. Early projects are expensive, but long-term supply impact could be significant.
Nuclear Dependence
Over 40% of New Jersey's generation comes from nuclear plants supported by ZEC payments, providing baseload stability.
Transmission Constraints
As part of the PJM Eastern region, New Jersey experiences congestion that can create price separation from western PJM.
Key Considerations for New Jersey Buyers
- Non-bypassable charges significantly impact total savings potential
- Government aggregation programs (Community Energy) offer group buying power
- Solar Renewable Energy Certificates (SRECs) create value for on-site generation
- Demand response participation through PJM can offset capacity costs
- Industrial rate classifications impact non-bypassable charge levels
Major Utilities in New Jersey
Seasonal Factors
Summer peak-driven capacity costs; coastal exposure to weather events.
Why Choose Eisenbach for NJ?
- Licensed and in good standing
- Decades of market experience
- Relationships with local suppliers
- Custom RFP processing within 1 day
Ready to Optimize Your NJ Energy Costs?
Our team understands New Jersey's market dynamics. Let's discuss your specific situation.
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