State Energy Guide

New Jersey Commercial Energy & Utility Guide

Commercial electricity and gas rates, energy market structure, regulations, and utility providers for property managers operating in New Jersey.

Energy Market Overview

Deregulated MarketNJ

New Jersey has a deregulated electricity market where commercial customers can choose competitive third-party suppliers (TPS). PSEG (Public Service Electric and Gas) is the dominant distribution utility serving northern and central New Jersey. The NJ Board of Public Utilities oversees retail choice. New Jersey participates in the PJM wholesale market.

What this means for property managers:

In New Jersey's deregulated market, you can shop for competitive electricity supply rates from third-party providers. This creates opportunities for cost savings through contract negotiation, but also requires active management of supply contracts, renewal timelines, and market price monitoring. Distribution charges remain fixed with your local utility.

Deregulated Market

Commercial customers can choose their electricity supplier from competitive providers.

Average Commercial Energy Rates

$0.16Avg. Commercial Electric
$1.20Avg. Commercial Gas

Rising

Rates rising due to offshore wind procurement costs (Ocean Wind projects), PJM capacity market increases, and grid infrastructure investments. PSEG has filed for delivery rate increases effective 2026.

Energy Regulations & Benchmarking

State Benchmarking Required

The NJ Clean Energy Act of 2018 established aggressive clean energy targets and includes provisions for building energy benchmarking. The state requires annual benchmarking for commercial buildings over 25,000 sqft using ENERGY STAR Portfolio Manager, with public disclosure of results. New Jersey targets 100% clean energy by 2035 and has enacted significant building decarbonization policies.

Cities in New Jersey

Utility Providers in New Jersey

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