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New Jersey Commercial Electricity Rates for Cannabis Facilities: EIA Averages, BGS, and Utility Classes

New Jersey's average commercial electricity price was 18.47 cents per kWh in June 2026, 30 percent above the U.S. average of 14.19, while the industrial average was 15.65 cents. The spread reflects delivery and PJM capacity more than a single fuel price: small accounts on fixed BGS-RSCP see supply near 11 to 12 cents/kWh from the 2026 auction, and large demand-metered accounts on BGS-CIEP see hourly PJM energy plus a capacity charge of about $598 to $680 per MW-day. Reading a New Jersey rate means reading the EDC, the rate schedule, and whether the supply line says RSCP or CIEP.

By Jason Taken, Founder, Jaken Energy

Updated September 11, 2026Last verified: September 11, 2026
Avg. commercial price
18.47 cents/kWh
June 2026
U.S. average
14.19 cents/kWh
June 2026
Energy choice
Retail electric choice under the Electric Discount and Energy Competition Act (EDECA)
All residential, commercial and industrial customers of PSE&G, JCP&L, Atlantic City Electric and Rockland Electric Company. Municipal electric systems (e.g., Vineland, Butler, Madison) and the Sussex Rural Electric Cooperative are outside the BPU choice framework.
Cooling / heating degree days
859 / 5168
Annual normals; see climate source

New Jersey figures last verified 2026-09-11. Full citations in the Sources section.

New Jersey vs. the U.S., June 2026

SectorNew JerseyU.S. averageNew Jersey premium
Commercial18.47 cents/kWh14.19 cents/kWh+4.28 cents (+30 percent)
Industrial15.65 cents/kWhnot in state file

Source: EIA Electric Power Monthly, Table 5.6.A [eia-epm-5-6-a].

The commercial premium is real but smaller than in New York or California. Much of the gap between BGS-RSCP supply near 11 to 12 cents/kWh [nj-bpu-bgs-2026] and the 18.47-cent commercial average is delivery, transmission, and surcharges on the EDC bill. The 2.82-cent spread between commercial and industrial averages within New Jersey shows how much rate class and load factor matter [eia-epm-5-6-a].

Average commercial electricity price by state, June 2026. Source: EIA Electric Power Monthly, Table 5.6.A. See each state page for the specific citation and verification date.
StateAvg. commercial priceCannabis marketEnergy choice
California27.33 cents/kWhAdult-use + medicalCommercial-only choice
Massachusetts24.52 cents/kWhAdult-use + medicalFull commercial choice
New York23.56 cents/kWhAdult-use + medicalFull commercial choice
Washington, D.C.23.38 cents/kWhMedical onlyFull commercial choice
Rhode Island22.70 cents/kWhAdult-use + medicalFull commercial choice
Maine22.24 cents/kWhAdult-use + medicalFull commercial choice
New Hampshire21.22 cents/kWhMedical onlyFull commercial choice
Connecticut19.62 cents/kWhAdult-use + medicalFull commercial choice
New Jersey18.47 cents/kWhAdult-use + medicalFull commercial choice
Maryland16.84 cents/kWhAdult-use + medicalFull commercial choice
Michigan16.63 cents/kWhAdult-use + medicalCapped commercial choice
Illinois14.53 cents/kWhAdult-use + medicalFull commercial choice
Delaware14.40 cents/kWhAdult-use + medicalFull commercial choice
Ohio13.77 cents/kWhAdult-use + medicalFull commercial choice
Pennsylvania13.33 cents/kWhMedical onlyFull commercial choice
Nevada9.83 cents/kWhAdult-use + medicalCommercial-only choice
Texas8.66 cents/kWhLow-THC medical onlyFull commercial choice

How the major utilities structure delivery and demand

UtilityTerritorySmall commercial classDemand-metered classesDemand-charge notes
PSE&GNewark, Jersey City, Trenton, Bergen-Camden corridorGLP (General Light and Power)LPL-Secondary, LPL-Primary, HTS (High Tension Service)GLP and LPL-Secondary under 500 kW on BGS-RSCP; larger LPL and HTS on BGS-CIEP [pseg-electric-tariffs]
JCP&LNorthwest, central, Jersey ShoreGS (General Service Secondary)GP (General Service Primary), GT (General Service Transmission)Per-kW demand on GP and GT; same RSCP/CIEP split as other EDCs [nj-bpu-commercial-shopping]
Atlantic City ElectricSouthern NJ, Atlantic City areaMGS-Secondary (monthly general service)AGS-Secondary, AGS-Primary, TGS (transmission)AGS demand-billed with 12-month ratchet [nj-bpu-commercial-shopping]
Rockland ElectricNorthern Bergen, Passaic, SussexSC 2 general non-demandSC 2-D with demand, SC 3 large primaryPer-kW on demand-metered classes [nj-bpu-commercial-shopping]

Per-kW distribution demand charges for GLP, LPL, GP, GT, AGS, and SC schedules were not confirmed from current tariff sheets for this page. Open the tariff URL for your EDC before quoting dollars per kW. The PSE&G and JCP&L utility pages explain where to find leaves.

The pattern for cannabis: a dispensary stays on GLP or GS with BGS-RSCP. A production grow crosses into LPL, GP, or AGS and lands on BGS-CIEP unless it signs with a Third Party Supplier [pseg-electric-tariffs] [nj-bpu-bgs-2026]. Class placement often saves more than a supplier discount; read demand charges explained first.

Default supply benchmarks: BGS-RSCP and BGS-CIEP

New Jersey does not publish one price to compare. The statewide BGS auction sets class-specific defaults [nj-bpu-bgs-2026].

ProductWho2026 supply benchmark (energy side)
BGS-RSCPSmall and medium commercial under the large-customer threshold at each EDCFixed 10.938 to 12.057 cents/kWh by EDC, effective June 1, 2026, in three-year tranches [nj-bpu-bgs-2026]
BGS-CIEPLarge C&I above thresholdPJM real-time hourly energy plus capacity/transmission about $598 to $680 per MW-day for June 2026 through May 2027 [nj-bpu-bgs-2026]

The BPU noted 2026 auction prices rose mainly on higher PJM energy and capacity costs, tempered by the PJM capacity price collar adopted in 2025 [nj-bpu-bgs-2026]. Compare TPS offers to the BGS line on your bill for your class [nj-bpu-commercial-shopping].

PJM and capacity context

All four EDCs are in PJM Interconnection [nj-bpu-commercial-shopping]. Third Party Supplier contracts pass through the customer's PJM capacity obligation based on summer peak load contribution and network transmission [nj-bpu-commercial-shopping]. Capacity cost is not a separate New Jersey-only fee; it is part of CIEP default supply and of most TPS quotes unless capacity is explicitly fixed.

A flat cultivation load with a managed peak is easier to price than a peaky retail load, but both pay delivery demand if the class bills kW. The switching guide covers enrollment.

Seasonality

New Jersey normals are 5,168 heating degree days and 859 cooling degree days [noaa-cag-new-jersey]. PJM real-time energy prices rise in summer with air-conditioning load [nj-bpu-bgs-2026]. CIEP accounts feel that on the supply line every hour. RSCP accounts keep fixed supply through the tranche but still pay seasonal delivery if the rate schedule has seasonal components. Coastal dew points at or above 70 F from June through September push dispensary and greenhouse peaks into the same months [noaa-cag-new-jersey].

How to read a New Jersey rate

  1. Find the rate schedule on the delivery section (GLP, LPL, GS, GP, etc.).
  2. Check the supply label for BGS-RSCP or BGS-CIEP.
  3. Separate supply from delivery. Supply is the BGS or TPS line; delivery is the EDC distribution and transmission charges [nj-bpu-commercial-shopping].
  4. Multiply billed kW by the class demand rate if demand-metered. Confirm the rate from the current tariff; none are quoted on this page.
  5. Divide total dollars by kWh for all-in cents per kWh and compare to 18.47 [eia-epm-5-6-a] only as a sanity check, not as your benchmark.

The understanding your commercial utility bill page walks a sample bill. The state rate comparison tool places New Jersey next to other cannabis states.

Worked comparison: same kWh, different classes

Assume 50,000 kWh in one month, a realistic month for a small processor or a very efficient micro-cultivator.

Account typeSupply productSupply $ at cited ratesWhat the example leaves out
Dispensary on JCP&L GSBGS-RSCP at 11.5 cents/kWh (mid-auction band) [nj-bpu-bgs-2026]$5,750Delivery, transmission, GLP/GS demand if billed
Same kWh on PSE&G GLPBGS-RSCP at 12.0 cents/kWh (upper auction band) [nj-bpu-bgs-2026]$6,000Delivery and surcharges
Grow on PSE&G LPL-CIEPHourly energy only at 12 cents/kWh average (assumed summer blend)$6,000 energyCIEP capacity $/MW-day not converted here [nj-bpu-bgs-2026]

The table shows why class and product beat a single cents-per-kWh headline. Two accounts with identical kWh can differ by hundreds of dollars on supply alone before delivery demand is counted. A TPS fixed contract for the dispensary competes with 11.5 cents RSCP; a TPS block-and-index for the grow competes with trailing CIEP, not with the store's RSCP line [nj-bpu-commercial-shopping].

Shopping lever by facility type

FacilityUsually onFirst rate question
DispensaryBGS-RSCPDoes a fixed TPS beat the RSCP line for 24 months? [nj-bpu-commercial-shopping]
Extraction lab under 500 kW at PSE&GBGS-RSCP or low CIEPCan batch scheduling keep you under the CIEP threshold? [pseg-electric-tariffs]
Indoor grow above 500 kWBGS-CIEPFixed vs block-and-index vs staying on default hourly [nj-bpu-bgs-2026]
Greenhouse in ACE territoryAGS or MGSDoes the 12-month AGS ratchet amplify a one-month peak? [nj-bpu-commercial-shopping]

Confirm placement on the bill before modeling dollars. Tariff thresholds at JCP&L, Atlantic City Electric, and Rockland Electric were not verified leaf-by-leaf for this page.

BGS auction ladder and June 1 effective dates

The BPU certified the 2026 statewide BGS auction February 12, 2026 [nj-bpu-bgs-2026]. BGS-RSCP closing prices run 10.938 to 12.057 cents/kWh across the four EDCs in laddered tranches effective June 1, 2026 [nj-bpu-bgs-2026]. BGS-CIEP capacity charges run about $598 to $680 per MW-day for June 2026 through May 2027 [nj-bpu-bgs-2026]. Compare TPS offers to the BGS line for your class, not to EIA's 18.47 cents statewide average [eia-epm-5-6-a] [nj-bpu-commercial-shopping].

Quarterly bill review cadence

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [nj-bpu-bgs-2026]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [nj-bpu-commercial-shopping]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pseg-electric-tariffs]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [noaa-cag-new-jersey]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Documentation for audits and lenders

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [nj-bpu-bgs-2026]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [nj-bpu-commercial-shopping]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pseg-electric-tariffs]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [noaa-cag-new-jersey]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Board reporting on utility COGS

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [nj-bpu-bgs-2026]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [nj-bpu-commercial-shopping]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pseg-electric-tariffs]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [noaa-cag-new-jersey]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Frequently asked questions

Is 18.47 cents per kWh what a New Jersey cannabis facility actually pays?

It is EIA's June 2026 average across all commercial customers, supply and delivery combined. A dispensary on BGS-RSCP may see supply near 11 to 12 cents plus delivery. A large grow on BGS-CIEP can see higher supply in summer from hourly PJM prices. Use your bill, not the average.

Why is the industrial average lower than commercial?

Industrial customers take higher voltage service, run flatter load factors, and land in demand classes with lower delivery cost per kWh. The June 2026 industrial average of 15.65 cents versus 18.47 commercial shows what class placement is worth.

What are the 2026 BGS-RSCP supply prices?

The BPU certified the 2026 auction February 12, 2026. BGS-RSCP closing prices run 10.938 to 12.057 cents/kWh across PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric, effective June 1, 2026, in three-year laddered tranches.

What does BGS-CIEP cost beyond energy?

BGS-CIEP adds a capacity and transmission charge from the annual auction of about $598 to $680 per MW-day for June 2026 through May 2027, plus PJM real-time hourly energy prices. Large cultivators on default CIEP are exposed to summer hourly spikes.

How do demand charges work at the major EDCs?

PSE&G GLP, LPL, and HTS bill per-kW delivery demand on demand-metered schedules. JCP&L GP and GT bill per-kW demand. Atlantic City Electric AGS uses demand billing with a 12-month ratchet. Current dollar-per-kW figures were not confirmed from tariff leaves for this page.

About the author
Jaken Energy

Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.

Sources

Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.

  1. [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025U.S. Energy Information Administration. Accessed 2026-09-11.
  2. [nj-bpu-bgs-2026]New Jersey Board of Public Utilities Certifies 2026 Electricity Auction Results (February 12, 2026)New Jersey Board of Public Utilities. Accessed 2026-09-11.
  3. [nj-bpu-commercial-shopping]Energy Shopping for Commercial CustomersNew Jersey Board of Public Utilities. Accessed 2026-09-11.
  4. [pseg-electric-tariffs]PSE&G Electric Tariffs (B.P.U.N.J. No. 17, effective July 15, 2026)PSE&G. Accessed 2026-09-11.
  5. [noaa-cag-new-jersey]Climate at a Glance: New Jersey statewide heating and cooling degree days, 1991-2020 base period averagesNOAA National Centers for Environmental Information. Accessed 2026-09-11.
  6. [pseg-electric-tariffs]PSE&G Electric Tariffs (B.P.U.N.J. No. 17, effective July 15, 2026)PSE&G. Accessed 2026-09-11.