NJ's 2026 BGS Auction: PSE&G and JCP&L Supply Prices for June 1

What the 2026 BGS auction decided

Every year New Jersey's four electric distribution companies buy default supply through a descending-clock auction overseen by the Board of Public Utilities. The February 2026 results, certified in Docket ER25040190, set prices for the period beginning June 1, 2026 [nj-bgs-2026-order].

The auction has two products. BGS-RSCP (Residential and Small Commercial Pricing) covers residential accounts and smaller commercial customers, including many dispensaries and craft grows under 500 kW. BGS-CIEP (Commercial and Industrial Energy Pricing) covers large commercial and industrial load priced at PJM real-time hourly energy, plus a capacity charge won in the auction [nj-bgs-2026-order].

For PSE&G, the 2026 RSCP closing price was 10.938 cents per kWh on 28 tranches. JCP&L cleared at 11.327 cents per kWh on 15 tranches [nj-bgs-2026-order]. Atlantic City Electric and Rockland Electric posted 11.275 and 12.057 cents respectively [nj-bgs-2026-order].

On the large-customer side, BGS-CIEP cleared at $677.73 per MW-day for PSE&G (24 tranches) and $680.00 per MW-day for JCP&L (9 tranches) [nj-bgs-2026-order]. That MW-day figure covers capacity and renewable portfolio costs; the energy itself floats hourly at PJM locational marginal prices.

Why June 1 matters on your calendar

June 1 is not arbitrary for a New Jersey cultivator. It marks the start of a new BGS supply year, the PJM capacity delivery year, and typically the heaviest cooling and dehumidification season for indoor flower rooms. If you are on a third-party contract that expires in May, your renewal decision lines up directly with whatever BGS price your utility posts for your class.

The BPU noted that approximately two-thirds of RSCP requirements were already under contract from the 2024 and 2025 auctions, with one-third rolling off each year [nj-bgs-2026-order]. That laddering means the June 1 price you see on your bill is a blend of three vintages, not just the February 2026 closing number.

For context, EIA reported New Jersey's average commercial price at 18.47 cents per kWh in June 2026, well above the RSCP supply component alone because delivery, demand, and taxes stack on top [eia-epm-5-6-a].

Worked example: a 200 kW PSE&G cultivation facility

Assume a 15,000 sq ft indoor facility in Newark on PSE&G LPL-Secondary at 200 kW peak demand and 280,000 kWh monthly use. This is an illustration, not a client bill.

Line item	Assumption	Monthly cost
BGS-RSCP supply	280,000 kWh x $0.10938	$30,626
Delivery energy	280,000 kWh x ~$0.04 (varies by schedule)	$11,200
Demand charge	200 kW x ~$12/kW (check tariff)	$2,400

Supply at the auction clearing price alone runs about 11 cents per kWh. Your all-in effective rate depends on how much of your bill is demand charges versus energy. A facility on BGS-CIEP at 800 kW would instead see supply swing with PJM hourly prices, which can spike on hot August afternoons when HVAC and lighting coincide.

PSE&G vs JCP&L: same auction, different territories

Both utilities cleared in the same statewide process, but territory matters for delivery. PSE&G's urban corridor (Essex, Hudson, Middlesex) carries different line-loss and congestion patterns than JCP&L's northwest and shore counties (Morris, Monmouth, Ocean). The RSCP supply price gap between them is about 0.39 cents per kWh in 2026 [nj-bgs-2026-order].

Multi-site operators with grows in both territories cannot assume one benchmark applies to both meters. Each account compares against its EDC's class-specific BGS price [nj-bpu-shopping].

What to do before June 1

Pull your rate schedule name from the bill header (GLP, LPL-Secondary, LPL-Primary, HTS at PSE&G; GS, GP, GT at JCP&L). Confirm whether you are on RSCP or CIEP. If you are large enough for CIEP and have not signed with a third-party supplier, you are already floating hourly.

Request fixed-price quotes for 12 or 24 months and compare the all-in supply rate to your blended BGS benchmark. Read pass-through language on PJM capacity and transmission. A fixed contract does not change your utility demand charge, but it can cap the supply volatility that CIEP exposes you to each summer.

See how to switch electricity suppliers in New Jersey for enrollment mechanics and the BPU's shopping checklist.

How the auction mechanics affect your price

The BGS auction uses a descending-clock format. Suppliers bid tranches of load until the clearing price stops falling. The BPU certifies results and directs each EDC to update tariff sheets [nj-bgs-2026-order]. For RSCP, the 2026 closing prices moved modestly: PSE&G down about 1.8 percent from the prior year blend and JCP&L up about 1.6 percent [nj-bgs-2026-order]. That is a different story from 2025, when PJM capacity costs drove double-digit supply jumps across the Mid-Atlantic.

Three tranches of RSCP load roll each year. Roughly one-third of the requirement was repriced in February 2026 while two-thirds stayed at 2024 and 2025 auction prices [nj-bgs-2026-order]. Your June 1 bill reflects that weighted average, not the headline closing price alone.

For CIEP, the capacity component is explicit. PSE&G cleared at $677.73 per MW-day and JCP&L at $680.00 per MW-day [nj-bgs-2026-order]. Energy floats hourly at PJM real-time prices. A hot afternoon when flower-room HVAC and lighting peak together can push hourly supply well above what a fixed RSCP customer pays that same month.

Atlantic City Electric and Rockland: do not ignore the tail

Most New Jersey cannabis activity clusters in PSE&G and JCP&L territory, but South Jersey and Rockland Electric customers still shop under the same BGS framework. Atlantic City Electric's 2026 RSCP cleared at 11.275 cents per kWh and Rockland at 12.057 cents [nj-bgs-2026-order]. If you are evaluating a site in Atlantic or Bergen County, use the EDC-specific benchmark, not PSE&G's 10.938 cent figure.

CIEP vs RSCP: which applies to your meter

Customer type	Typical threshold	BGS product	Price form
Dispensary, small craft grow	Under 500 kW demand	BGS-RSCP	Fixed cents/kWh
Large indoor cultivation	500 kW+ demand	BGS-CIEP	Hourly energy + MW-day capacity
Multi-site portfolio	Varies by account	Per meter	Compare each separately

The 500 kW threshold is a common breakpoint at PSE&G LPL-Secondary, but confirm on your bill. HTS and LPL-Primary accounts almost always land on CIEP [nj-bpu-shopping].

Worked example: 800 kW facility on BGS-CIEP

Assume a 40,000 sq ft indoor grow in Monmouth County on JCP&L at 800 kW peak and 950,000 kWh monthly use. Illustration only.

Line item	Calculation	Monthly estimate
CIEP capacity	0.8 MW x $680/MW-day x 30 days	$16,320
CIEP energy (assumed avg)	950,000 kWh x $0.07/kWh RT average	$66,500
Delivery demand	800 kW x tariff rate	varies
Delivery energy	950,000 kWh x delivery rate	varies

Capacity alone adds about 1.7 cents per kWh before energy and delivery. If real-time energy averages 7 cents in a mild month but spikes to 15 cents during a heat wave, your supply line swings while a fixed third-party contract would not.

Timing your contract against PJM capacity

June 1 also starts the PJM capacity delivery year. BGS-CIEP capacity charges embed the auction result your EDC won in February [nj-bgs-2026-order]. Third-party suppliers price PJM capacity differently: some include it in a fixed rate, others pass it through monthly. Read the contract fine print before signing.

If you are building out a new facility expected to cross 500 kW, plan supply strategy before energization. Default CIEP assignment happens automatically when you exceed the large-customer threshold [nj-bpu-shopping]. Signing a fixed supplier contract before that threshold can lock a price before hourly exposure begins.

What stable prices still cost you

Modest year-over-year BGS moves do not mean cheap power. New Jersey's all-in commercial rate remains among the highest in the country when delivery and demand stack on supply [eia-epm-5-6-a]. A 1.6 percent supply increase on a $40,000 monthly bill is still $640 per month. Shopping supply will not cut demand charges, but it can stabilize the energy and capacity lines that cultivators control through contract choice.

For PSE&G-specific delivery schedules, see PSE&G commercial rates. For JCP&L territory grows, see JCP&L rate context. Cultivation load profiles are covered in New Jersey cultivation facility energy.

Verifying BPU-licensed suppliers before June 1

The BPU publishes licensed third-party suppliers on its commercial shopping page [nj-bpu-shopping]. Before signing a fixed contract to replace BGS, confirm the supplier holds an active license and understand whether the quote is for your exact rate class [nj-bpu-shopping]. A price marketed to small commercial GLP accounts does not apply to an LPL-Primary CIEP meter.

Enrollment lead time runs ten to fifteen business days typical [nj-bpu-shopping]. Submit supplier choice paperwork by mid-April if you want service to start June 1 when the 2026 auction prices apply [nj-bgs-2026-order]. A gap month on default BGS during peak summer cooling can erase supply savings from a slightly better fixed rate.

Third-party capacity language vs BGS-CIEP MW-day

Suppliers price PJM capacity three ways: embedded in a fixed rate, passed through monthly, or indexed to the BGS auction result [nj-bgs-2026-order]. CIEP customers already see capacity as an explicit MW-day line [nj-bgs-2026-order]. Fixed supplier contracts should state whether capacity is capped or floats at each June 1 PJM delivery year reset.

Compare supplier pass-through language to the $677.73 PSE&G and $680.00 JCP&L CIEP capacity clears [nj-bgs-2026-order]. A supplier quoting 10.5 cents all-in with capacity included may beat CIEP hourly exposure in a hot summer if real-time energy averages above eleven cents [eia-epm-5-6-a].

Multi-site operators in PSE&G and JCP&L territory

A portfolio with a Newark grow on PSE&G and a Monmouth grow on JCP&L needs two benchmarks [nj-bgs-2026-order]. The 2026 RSCP gap between utilities is 0.39 cents per kWh [nj-bgs-2026-order]. CIEP capacity differs by $2.27 per MW-day between territories [nj-bgs-2026-order]. Central procurement that uses one statewide average misstates savings at at least one meter.

Pull each account's rate schedule, BGS product assignment, and twelve-month supply cost before renewing any master supply agreement [nj-bpu-shopping].