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.
New Jersey figures last verified 2026-09-11. Full citations in the Sources section.
New Jersey vs. the U.S., June 2026
| Sector | New Jersey | U.S. average | New Jersey premium |
|---|---|---|---|
| Commercial | 18.47 cents/kWh | 14.19 cents/kWh | +4.28 cents (+30 percent) |
| Industrial | 15.65 cents/kWh | not 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].
| State | Avg. commercial price | Cannabis market | Energy choice |
|---|---|---|---|
| California | 27.33 cents/kWh | Adult-use + medical | Commercial-only choice |
| Massachusetts | 24.52 cents/kWh | Adult-use + medical | Full commercial choice |
| New York | 23.56 cents/kWh | Adult-use + medical | Full commercial choice |
| Washington, D.C. | 23.38 cents/kWh | Medical only | Full commercial choice |
| Rhode Island | 22.70 cents/kWh | Adult-use + medical | Full commercial choice |
| Maine | 22.24 cents/kWh | Adult-use + medical | Full commercial choice |
| New Hampshire | 21.22 cents/kWh | Medical only | Full commercial choice |
| Connecticut | 19.62 cents/kWh | Adult-use + medical | Full commercial choice |
| New Jersey | 18.47 cents/kWh | Adult-use + medical | Full commercial choice |
| Maryland | 16.84 cents/kWh | Adult-use + medical | Full commercial choice |
| Michigan | 16.63 cents/kWh | Adult-use + medical | Capped commercial choice |
| Illinois | 14.53 cents/kWh | Adult-use + medical | Full commercial choice |
| Delaware | 14.40 cents/kWh | Adult-use + medical | Full commercial choice |
| Ohio | 13.77 cents/kWh | Adult-use + medical | Full commercial choice |
| Pennsylvania | 13.33 cents/kWh | Medical only | Full commercial choice |
| Nevada | 9.83 cents/kWh | Adult-use + medical | Commercial-only choice |
| Texas | 8.66 cents/kWh | Low-THC medical only | Full commercial choice |
How the major utilities structure delivery and demand
| Utility | Territory | Small commercial class | Demand-metered classes | Demand-charge notes |
|---|---|---|---|---|
| PSE&G | Newark, Jersey City, Trenton, Bergen-Camden corridor | GLP (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&L | Northwest, central, Jersey Shore | GS (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 Electric | Southern NJ, Atlantic City area | MGS-Secondary (monthly general service) | AGS-Secondary, AGS-Primary, TGS (transmission) | AGS demand-billed with 12-month ratchet [nj-bpu-commercial-shopping] |
| Rockland Electric | Northern Bergen, Passaic, Sussex | SC 2 general non-demand | SC 2-D with demand, SC 3 large primary | Per-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].
| Product | Who | 2026 supply benchmark (energy side) |
|---|---|---|
| BGS-RSCP | Small and medium commercial under the large-customer threshold at each EDC | Fixed 10.938 to 12.057 cents/kWh by EDC, effective June 1, 2026, in three-year tranches [nj-bpu-bgs-2026] |
| BGS-CIEP | Large C&I above threshold | PJM 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
- Find the rate schedule on the delivery section (GLP, LPL, GS, GP, etc.).
- Check the supply label for BGS-RSCP or BGS-CIEP.
- Separate supply from delivery. Supply is the BGS or TPS line; delivery is the EDC distribution and transmission charges [nj-bpu-commercial-shopping].
- Multiply billed kW by the class demand rate if demand-metered. Confirm the rate from the current tariff; none are quoted on this page.
- 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 type | Supply product | Supply $ at cited rates | What the example leaves out |
|---|---|---|---|
| Dispensary on JCP&L GS | BGS-RSCP at 11.5 cents/kWh (mid-auction band) [nj-bpu-bgs-2026] | $5,750 | Delivery, transmission, GLP/GS demand if billed |
| Same kWh on PSE&G GLP | BGS-RSCP at 12.0 cents/kWh (upper auction band) [nj-bpu-bgs-2026] | $6,000 | Delivery and surcharges |
| Grow on PSE&G LPL-CIEP | Hourly energy only at 12 cents/kWh average (assumed summer blend) | $6,000 energy | CIEP 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
| Facility | Usually on | First rate question |
|---|---|---|
| Dispensary | BGS-RSCP | Does a fixed TPS beat the RSCP line for 24 months? [nj-bpu-commercial-shopping] |
| Extraction lab under 500 kW at PSE&G | BGS-RSCP or low CIEP | Can batch scheduling keep you under the CIEP threshold? [pseg-electric-tariffs] |
| Indoor grow above 500 kW | BGS-CIEP | Fixed vs block-and-index vs staying on default hourly [nj-bpu-bgs-2026] |
| Greenhouse in ACE territory | AGS or MGS | Does 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.
Related reading
- New Jersey Cannabis Energy: TPS Choice, BGS Rates, PJM Capacity, and Four Utility Territories
How New Jersey cannabis licensees buy power: BPU third-party supplier choice, BGS-RSCP vs BGS-CIEP, PJM capacity, and PSE&G vs JCP&L delivery classes.
- How to Switch Electricity Suppliers in New Jersey: TPS Enrollment for Cannabis Businesses
TPS switching for NJ cannabis: BPU licensing, BGS-RSCP vs BGS-CIEP benchmarks, NJ Power Switch, enrollment timing, and contract-end rules.
- PSE&G for Cannabis Facilities: GLP, LPL, BGS-RSCP vs BGS-CIEP, and TPS Billing
PSE&G cannabis billing: GLP vs LPL-Secondary at 500 kW, HTS primary service, BGS products, demand charges, and mybizenergy rebates.
- JCP&L for Cannabis Facilities: GS, GP, GT Classes, BGS, and Shore-County Loads
Jersey Central Power & Light cannabis billing: GS vs GP vs GT, BGS-RSCP and CIEP, Monmouth-Ocean territory, and FirstEnergy efficiency programs.
- Demand Charges Explained for Cannabis Cultivators
What a demand charge is, how utilities measure peak kW in 15- or 30-minute windows, why grow rooms get hit hard, how ratchets work, and a worked example.
- Understanding Your Commercial Utility Bill (Line-Item Breakdown)
Supply vs delivery, customer charge, distribution demand, transmission, capacity, riders, power factor, and taxes, with an annotated sample bill for a grow.
- State Commercial Rate Comparison
Compare average commercial electricity prices across cannabis states, with cannabis market status and supplier choice rules pulled from verified state data.
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.
- [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 2025 — U.S. Energy Information Administration. Accessed 2026-09-11.
- [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.
- [nj-bpu-commercial-shopping]Energy Shopping for Commercial Customers — New Jersey Board of Public Utilities. Accessed 2026-09-11.
- [pseg-electric-tariffs]PSE&G Electric Tariffs (B.P.U.N.J. No. 17, effective July 15, 2026) — PSE&G. Accessed 2026-09-11.
- [noaa-cag-new-jersey]Climate at a Glance: New Jersey statewide heating and cooling degree days, 1991-2020 base period averages — NOAA National Centers for Environmental Information. Accessed 2026-09-11.
- [pseg-electric-tariffs]PSE&G Electric Tariffs (B.P.U.N.J. No. 17, effective July 15, 2026) — PSE&G. Accessed 2026-09-11.