NJ Electric Bills Going Up: Here's How Much More You'll Pay

NEW JERSEY — State residents will soon need to pay more to keep the lights on. The New Jersey Board of Public Utilities approved the results of the state's annual "electricity auction" on Tuesday, which will result in rate increases that begin in June.

New Jersey's utility companies procure electricity from third-party providers. Much of that supply comes from an annual Basic Generation Services (BGS) auction — a descending-clock process that plays a major part in determining annual rates on electric bills.

The new rates will take effect June 1 and run through May 31, 2024.

Here's how much the average monthly residential bill will change, according to the state utilities board:

The above calculations apply for usage of 650 kWh per month — in line with the state average.

Last year's auction resulted in lower rates on electric bills. But bills will rise this year because of increased energy costs, the utility board says.

"The average bill is based, in part, upon the results from the last three BGS auctions," Board President Joseph L. Fiordaliso said in a statement. "As a result, in 2023, BGS ratepayers will experience an increase in energy costs that are generally at or below the current rate of inflation."

The cost increases come months after the state utility board approved rate hikes for all of the state's natural-gas providers. The gas hikes, approved in September, were more significant — ranging from increases of 15-24 percent.

PSE&G lowered its heating-bill rates as of Feb. 1 after the cost of natural gas cratered. But New Jersey's other three natural gas providers — New Jersey Natural Gas, Elizabethtown Gas and South Jersey Gas — told Patch they have no immediate plans to lower their rates.

Read more:

• NJ To Pay More For Heat As State Approves Gas Rate Hikes for Millions
• Utility Prices For Some In NJ To Drop Feb. 1: What To Know