You may be hearing news reports announcing the results of the PJM Base Residual Auction (BRA) that was held on July 22. A number of these news reports may speculate that the price of the electric supply that you use could rise again in 2026.
The good news is that we do not anticipate an impact on our customers’ electric bills next year due to the July PJM BRA results.
We are committed to helping you understand the facts behind the energy markets and the PJM auctions. Here is what you need to know:
What is PJM?
PJM Interconnection is the organization that is responsible for ensuring the reliable flow of electricity in 13 states, including New Jersey, as well as the District of Columbia.
What is the PJM BRA?
PJM holds the BRA to ensure enough generation to meet forecast demand for electricity one year in the future, plus a reserve margin, in a least cost manner.
What does this mean for your electric bill?
News reports may note that the pricing coming out of the BRA is up from last year, and that it is at the PJM mandated price cap. However, due to other factors, we anticipate a near flat impact on customers’ electric bills effective June 1, 2026, as long as other supply-related costs, such as the cost of energy, remain roughly the same.
It is important for you to know that PSE&G does not control or profit from the results of the BRA nor the portion of the supply charge for the electricity you consume. These costs are passed through directly to you with no mark-up.
What can customers do to manage energy costs?
Regardless of electric rates, you can take steps now to save energy and money. Learn about our energy efficiency programs, including the new FlexPower demand response program. For payment assistance programs and more tools and resources click vist pseg.com/saveenergy. Our Equal Payment Plan can help you manage your monthly energy bills and avoid seasonal peaks. It estimates your yearly energy costs (based on last year’s usage) and divides the total into 12 equal monthly payments. You pay the same amount for your energy bill each month.
If you’re an electric customer with a smart meter, MyMeter provides you with a detailed view of how and when you use electricity as well as helpful energy-saving information. You can set usage thresholds and receive alerts by text, email or both. MyMeter is easy to access through MyAccount or through our mobile app.
What are the next steps for New Jersey?
In the face of increasing demand and few firm generating resources being built, New Jersey is becoming ever more dependent upon PJM, importing approximately 40% of our power.
New Jersey needs to understand its customer demand requirements, consider what industries it wants to attract, and determine whether or not it wants to continue to be a large importer of energy.
Once these factors are defined, New Jersey also needs to consider its targets for customer affordability and the environment. These are not simple questions as they lead to important conversations on resources, supply chains and siting and permitting of pipelines, transmission lines and new power plants.
We stand ready to work with New Jersey policymakers on long-term solutions to our supply-demand challenge when we’re legally allow to do so, and we’ll be prepared to develop an integrated resource plan once these and other key questions are addressed.
