How to Switch Electricity Suppliers in New Jersey: TPS Enrollment for Cannabis Businesses
Any commercial or industrial customer of PSE&G, JCP&L, Atlantic City Electric, or Rockland Electric can buy electricity supply from a BPU-licensed Third Party Supplier while the utility keeps delivering and billing delivery. The supplier submits enrollment, the switch takes effect on a meter-read date, and outage response stays with the EDC. The New Jersey-specific steps are finding the class-specific BGS benchmark on your bill, knowing whether you are on fixed BGS-RSCP or hourly BGS-CIEP, and comparing TPS offers on the same basis the BPU Energy Shopping Handbook describes.
Who can switch
Retail electric choice in New Jersey dates to the Electric Discount and Energy Competition Act (EDECA), effective 1999, N.J.S.A. 48:3-49 et seq. [nj-bpu-commercial-shopping]. All residential, commercial, and industrial customers of PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric may buy supply from a BPU-licensed Third Party Supplier (TPS) [nj-bpu-commercial-shopping]. Municipal electric systems and the Sussex Rural Electric Cooperative are outside this framework [nj-bpu-commercial-shopping].
Customers who do not shop receive Basic Generation Service (BGS) from the EDC at prices from the annual statewide auction certified by BPU order [nj-bpu-bgs-2026]. The utility keeps delivery, metering, and outage response regardless of supplier [nj-bpu-commercial-shopping].
For background on separated supply and delivery, read what energy deregulation is.
Step 1: Confirm your electric distribution company
The utility name on the bill determines eligibility, rate schedules, and which BGS-RSCP price band applies. PSE&G serves the urban corridor from Bergen through Camden [pseg-electric-tariffs]. JCP&L serves northwestern and central counties plus the shore [nj-bpu-commercial-shopping]. Atlantic City Electric serves southern counties including the Atlantic City cultivation belt [nj-bpu-commercial-shopping]. Rockland Electric serves northern Bergen, Passaic, and Sussex bordering New York [nj-bpu-commercial-shopping].
If the bill says Vineland Municipal Utilities or another municipal system, stop here. Those accounts cannot use a TPS under the BPU framework [nj-bpu-commercial-shopping].
Step 2: Identify rate class and BGS product
New Jersey uses two default supply products [nj-bpu-commercial-shopping]:
| Product | Typical accounts | Supply pricing |
|---|---|---|
| BGS-RSCP | Small and medium commercial; PSE&G GLP and LPL-Secondary under 500 kW | Fixed price from three-year auction tranches; 2026 prices 10.938 to 12.057 cents/kWh by EDC [nj-bpu-bgs-2026] |
| BGS-CIEP | Large C&I above the RSCP threshold at each EDC | PJM real-time hourly energy plus capacity/transmission about $598 to $680 per MW-day for 2026-2027 [nj-bpu-bgs-2026] |
A dispensary on PSE&G GLP is almost always RSCP. A 600 kW grow on PSE&G LPL-Secondary is CIEP [pseg-electric-tariffs]. JCP&L, Atlantic City Electric, and Rockland Electric follow the same large-customer boundary pattern at comparable thresholds [nj-bpu-commercial-shopping]. Exact kW cutoffs at JCP&L, ACE, and Rockland were not confirmed from tariff leaves for this page; read your bill label and confirm with the EDC if unclear.
Step 3: Gather bills and interval data
Pull twelve months of bills for every meter. You need:
- Account and meter numbers
- Rate schedule code (GLP, LPL, GS, GP, GT, MGS, AGS, etc.)
- Monthly kWh and billed kW
- Supply line dollars separated from delivery
- BGS-RSCP or BGS-CIEP indicator
CIEP accounts should add interval data if available. Hourly load shape drives CIEP cost and TPS pricing [nj-bpu-bgs-2026]. Cultivation facilities with flat lighting schedules benefit from showing 8,760 hours to suppliers.
Step 4: Establish the BGS benchmark
The BPU Energy Shopping Handbook for businesses directs customers to compare fixed, floating, and hybrid TPS offers against the class-specific BGS rate [nj-bpu-commercial-shopping]. There is no single statewide price to compare.
RSCP accounts: Read the BGS-RSCP cents per kWh on the bill. The 2026 auction certified February 12, 2026 sets tranche prices from 10.938 to 12.057 cents/kWh across the four EDCs effective June 1, 2026 [nj-bpu-bgs-2026].
CIEP accounts: Sum supply charges for twelve months and divide by kWh for an all-in supply benchmark. Compare TPS fixed or block-and-index offers to that trailing average, not to the RSCP number a store in your company sees [nj-bpu-bgs-2026].
Do not use EIA's 18.47 cents per kWh statewide commercial average as your benchmark [eia-epm-5-6-a]. That figure blends supply and delivery across all classes.
Step 5: Verify the supplier on NJ Power Switch
The BPU publishes licensed Third Party Suppliers at NJ Power Switch [nj-powerswitch]. Confirm the company is licensed before sharing account data or signing. The commercial shopping page links the handbook and supplier resources [nj-bpu-commercial-shopping].
Step 6: Request quotes in a common format
Give every TPS the same package: bills, interval data if available, term lengths (12, 24, 36 months), and product type. Ask each to state:
- Fixed, index, or block-and-index structure
- Whether PJM capacity is fixed or passed through
- Whether transmission and ancillary services are bundled
- Price by meter, not portfolio-blended
- Billing arrangement: utility consolidated or dual
The fixed vs index vs block-and-index page explains structures. All commercial customers may receive any product type; New Jersey does not have New York's 2019 mass-market ESCO reset restrictions [nj-bpu-commercial-shopping].
Step 7: Review contract terms
Read term, renewal clause, notice window, early termination fee, and billing method [nj-bpu-commercial-shopping]. The contract fine print page covers evergreen risk. Consolidated billing through the EDC is simpler for multi-site operators; dual billing means two invoices to reconcile.
Step 8: Sign and let the TPS enroll you
The Third Party Supplier submits enrollment to the EDC [nj-bpu-commercial-shopping]. The switch takes effect on a scheduled meter-read date, typically within one billing cycle. No service interruption, no meter swap for supply choice alone. The what happens to my utility FAQ covers outage responsibility.
Plan start dates deliberately. A grow leaving default CIEP before summer reduces hourly exposure during PJM peak months [nj-bpu-bgs-2026].
Step 9: Calendar the contract end
At term end you re-sign, auto-renew under the contract clause, or revert to BGS [nj-bpu-commercial-shopping]. Reverting to CIEP during summer restores hourly PJM pricing [nj-bpu-bgs-2026]. Put the end date and notice deadline on a shared calendar and start re-bidding 60 to 90 days ahead.
Mistakes New Jersey operators make
- Using one benchmark for stores and grows. RSCP and CIEP are different products. Compare each account to its own BGS line.
- Ignoring capacity on CIEP accounts. The 2026 auction capacity component runs about $598 to $680 per MW-day [nj-bpu-bgs-2026]. A TPS quote that excludes capacity is not comparable to default CIEP.
- Assuming the EIA average is your price. 18.47 cents commercial is all-in statewide [eia-epm-5-6-a]. Your bill already splits supply and delivery.
- Missing the June 1 BGS effective date. Auction results certified each February apply from June 1 [nj-bpu-bgs-2026]. Align contract starts with tranche rollovers when it helps.
- Enrolling with an unlicensed marketer. Use NJ Power Switch [nj-powerswitch].
For utility-specific delivery classes, see PSE&G and JCP&L. For rate tables, see commercial electricity rates. For timing, see how long switching takes.
NJ Power Switch and consolidated billing
Licensed Third Party Suppliers appear on NJ Power Switch [nj-powerswitch]. BPU's Energy Shopping Handbook directs customers to compare fixed, floating, and hybrid TPS offers against the class-specific BGS rate [nj-bpu-commercial-shopping]. Consolidated billing through the EDC is common; confirm format at signing [nj-bpu-commercial-shopping]. TPS contracts pass through PJM capacity based on summer peak load contribution [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 [nj-bpu-commercial-shopping]. Update the folder after every rate case order and every benchmark reset published by the regulator [nj-powerswitch]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [nj-bpu-bgs-2026]. 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 [eia-epm-5-6-a]. Confirm current rules with the regulator or your advisor before signing supply contracts [nj-bpu-commercial-shopping].
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 [nj-bpu-commercial-shopping]. Update the folder after every rate case order and every benchmark reset published by the regulator [nj-powerswitch]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [nj-bpu-bgs-2026]. 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 [eia-epm-5-6-a]. Confirm current rules with the regulator or your advisor before signing supply contracts [nj-bpu-commercial-shopping].
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 [nj-bpu-commercial-shopping]. Update the folder after every rate case order and every benchmark reset published by the regulator [nj-powerswitch]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [nj-bpu-bgs-2026]. 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 [eia-epm-5-6-a]. Confirm current rules with the regulator or your advisor before signing supply contracts [nj-bpu-commercial-shopping].
Tariff verification before budgeting
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [nj-bpu-commercial-shopping]. Update the folder after every rate case order and every benchmark reset published by the regulator [nj-powerswitch]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [nj-bpu-bgs-2026]. 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 [eia-epm-5-6-a]. Confirm current rules with the regulator or your advisor before signing supply contracts [nj-bpu-commercial-shopping].
Frequently asked questions
Who submits the switch in New Jersey?
The Third Party Supplier submits enrollment to your electric distribution company after you sign. You do not call PSE&G or JCP&L to switch supply, and you do not need a new meter or a service interruption. The EDC continues to deliver and to bill delivery charges.
What benchmark should I compare a TPS offer against?
The BGS price for your rate class at your EDC, not a single statewide number. Small commercial accounts on BGS-RSCP compare against the fixed RSCP line on the bill. Large accounts on BGS-CIEP compare against trailing hourly default supply cost including capacity.
Does switching change who I call in an outage?
No. The EDC keeps the wires and outage response. The TPS only replaces the generation and supply portion. Under consolidated billing you still receive one bill from the EDC with the TPS charge shown separately or embedded per the contract.
How long does switching take?
The change takes effect on a meter-read date after the TPS processes enrollment, typically one billing cycle. Ask the supplier which read date it targets, especially if you want a fixed contract to start before summer CIEP exposure.
What happens when my TPS contract ends?
If you do not renew or switch to another TPS, supply reverts to Basic Generation Service at the current BGS auction price. RSCP accounts return to fixed tranches. CIEP accounts return to hourly PJM real-time pricing plus the auction capacity charge.
Can a Vineland municipal customer switch?
No. Municipal electric systems and the Sussex Rural Electric Cooperative are outside the BPU retail choice framework. Only customers of the four investor-owned EDCs may enroll with a licensed Third Party Supplier.
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.
- New Jersey Commercial Electricity Rates for Cannabis Facilities: EIA Averages, BGS, and Utility Classes
NJ commercial power averaged 18.47 cents/kWh in June 2026 vs 14.19 nationally. BGS-RSCP and BGS-CIEP benchmarks and EDC demand-class tables.
- 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.
- What Is Energy Deregulation? How Electricity Choice Works for Commercial Customers
How deregulation splits supply from delivery, who gets to choose a supplier, what the utility still does, and where cannabis businesses can shop in 17 markets.
- Fixed vs. Index vs. Block-and-Index Electricity Contracts
What each supply structure means, who carries price risk, which fits a 24/7 grow load, what pass-throughs do, and a worked 12-month comparison.
- Contract Terms to Watch: Early Termination Fees, Evergreen Clauses, and Pass-Throughs
Clause-by-clause guide to a retail electricity supply contract: price, swing, pass-throughs, change in law, ETF formulas, renewal notices, assignment, credit.
- How Long Does Switching Electricity Suppliers Take?
How long supplier switches take: PA's 3-day rule, CT meter-read timing, Texas ERCOT, rescission windows, and mid-contract moves for commercial accounts.
- What Happens to My Utility When I Switch Suppliers?
After you switch suppliers the utility still delivers power and fixes outages. One bill vs two, delivery demand, price to compare, and net metering.
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 [nj-bpu-commercial-shopping], refer to the entries below. Links open the primary source in a new tab.
- [nj-bpu-commercial-shopping]Energy Shopping for Commercial Customers — New Jersey Board of Public Utilities. Accessed 2026-09-11.
- [nj-powerswitch]NJ Power Switch (licensed third party suppliers) — New Jersey Board of Public Utilities. 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.
- [pseg-electric-tariffs]PSE&G Electric Tariffs (B.P.U.N.J. No. 17, effective July 15, 2026) — PSE&G. Accessed 2026-09-11.
- [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.