The New Jersey Board of Public Utilities on Feb 12 certified the results of the state’s 25th annual electricity auction for Basic Generation Service (BGS), setting supply rates for most of the state that will take effect June 1.
“As wholesale markets continue to put pressure on energy prices, our top priority is keeping electricity affordable for New Jersey customers by using every available tool to keep costs down as directed by Governor Sherrill’s Executive Order No. 1,” said NJBPU President Christine Guhl-Sadovy.
The BGS auction determines, in part, the cost of electricity for most New Jersey residents and many businesses for a 12-month period starting June 1, 2026. Winning prices for all four EDCs increased slightly compared with last year’s auction, driven largely by increases in wholesale energy and the PJM Interconnection (PJM) capacity market. This year’s BGS results remained relatively flat in part due to the PJM collar which is part of a settlement to address high market prices.
Gov. Mikie Sherrill, whose gubernatorial campaign focused on affordability for state residents that included the cost of energy, addressed the auction results.
“Affordability is my top priority,” said Sherrill. “I’ve heard from people across New Jersey that the cost of energy is too high, which is why I’m using every tool at my disposal to drive costs down. The recent auction results demonstrate that the fight to implement price caps at PJM is working to keep electricity costs from further skyrocketing. From Day One of my administration, I’ve taken action to provide direct relief to ratepayers, and to offset any increases from this auction. I’m committed to continuing to work to drive down utility costs and hold PJM accountable.”’
Sherrill’s first executive order declared a state of emergency on utility costs and directed regulators to offset electricity supply rate increases beginning with the June 2026 billing cycle. The order requires the NJBPU to provide Residential Universal Bill Credits to help offset supply cost increases, with credits to be issued no later than July 1, 2026.
According to the board, winning prices for all four electric distribution companies increased slightly compared with last year, largely due to higher wholesale energy costs and PJM Interconnection capacity market prices. However, overall results remained relatively flat in part due to a temporary “price collar” adopted in February 2025 that capped and set a floor on PJM capacity prices.
PJM, a regional transmission organization that manages the electric grid across 13 states and the District of Columbia, oversees wholesale electricity markets. The price collar set a ceiling of $325 per megawatt-day and a floor of $175 per megawatt-day for the past two auctions.
These are the new rates by utility:
- Atlantic City Electric: a 22 cents increase, bringing the average bill to $201.76 (0.11% increase).
- Jersey Central Power & Light: a $2.23 hike, bringing the average bill to $137.47 (1.6% increase).
- PSE&G: a $3.23 decrease, lowering the average bill to $180.23 (-1.8%).
- Rockland Electric Company: a $1.17 decline, lowering the average bill to $168.93 (-0.7%).
The BGS auction consists of two separate descending clock auctions conducted by NERA Economic Consulting: one for residential and small commercial customers and one for large commercial and industrial customers. Together, the auctions secured commitments for about 7,600 megawatts of customer requirements.
State officials noted that the four regulated electric distribution companies do not earn a profit on the cost of electricity secured through the auctions, as those costs are passed directly to ratepayers.
