Utility Costs:
How to Lower Your Monthly Bills

Public Service Electric and Gas is the largest utility in New Jersey, serving most of Burlington County and parts of Camden and Gloucester Counties. PSE&G provides both electricity and natural gas. They offer energy efficiency programs, rebates for smart thermostats and appliances, and free home energy assessments for eligible customers. PSE&G is also one of the companies that allows you to choose an alternative energy supplier if you want to shop for a lower rate.

Atlantic City Electric serves parts of Burlington, Camden, and Gloucester Counties, particularly in the southern portions of these counties. They provide electricity only. Natural gas is provided by a separate company. Atlantic City Electric offers energy efficiency rebates, budget billing options, and assistance programs for income-eligible customers. They also participate in the New Jersey Clean Energy Program.

Elizabethtown Gas serves parts of Burlington County and other areas of central New Jersey. South Jersey Gas serves parts of Camden and Gloucester Counties. Both provide natural gas only. They offer energy efficiency programs, rebates for high-efficiency furnaces and water heaters, and budget billing to smooth out seasonal fluctuations in your gas bill.

The supply charge is the cost of the actual electricity or natural gas you use. It is measured in kilowatt-hours (kWh) for electricity and therms for gas. This is the part of your bill you can influence by shopping for an alternative supplier. In New Jersey, you have the right to choose your energy supplier, though the utility company continues to deliver the energy. Shop around for competitive rates, but be wary of teaser rates that expire after a few months and then spike significantly.

The delivery charge is the cost of transporting energy to your home through the grid. It covers maintenance of power lines, pipes, transformers, meters, and the utility infrastructure. This charge is set by the utility company and approved by the New Jersey Board of Public Utilities. You cannot shop around for a lower delivery charge. It is the same regardless of which supplier you choose. The delivery charge typically accounts for 30 to 50 percent of your total bill.

Your bill may also include a customer charge, which is a fixed monthly fee regardless of usage, and various taxes and regulatory fees. These are typically small compared to the supply and delivery charges but add up over time. Understanding each line item helps you see exactly where your money is going and whether there are any unexpected charges.

Low-flow showerheads and faucet aerators reduce water usage without sacrificing water pressure. A standard showerhead uses 2.5 gallons per minute, while a low-flow model uses 1.5 to 2.0 gallons per minute. For a family of four, this can save thousands of gallons per year. Low-flow toilets use 1.28 gallons per flush compared to 3.5 gallons in older models.

Water your lawn in the early morning to reduce evaporation. Use a rain gauge to track rainfall and only water when needed. Consider installing a rain barrel to collect rainwater for outdoor use. In South Jersey, summer droughts are becoming more common, and water conservation is both environmentally responsible and financially smart.

Dishwashers and washing machines use the same amount of water regardless of the load size. Run them only when full to maximize water efficiency. If you need to replace your appliances, look for ENERGY STAR certified models that use less water and energy.

The NJ Clean Energy Program offers free or low-cost home energy assessments through participating utilities. An energy auditor visits your home, inspects insulation, air sealing, HVAC, and appliances, and provides a report with recommended improvements. Many of the improvements, such as insulation and air sealing, are eligible for rebates that cover a significant portion of the cost. This is the best starting point for any homeowner looking to reduce energy costs.

Current rebate programs include up to $500 for qualifying central air conditioners, up to $300 for furnaces and boilers, up to $50 for smart thermostats, and rebates for insulation, windows, and ENERGY STAR appliances. The exact amounts change periodically, so check the NJ Clean Energy website for the most current information. Many utility companies also offer additional rebates on top of the state programs.

Start by visiting the NJ Clean Energy website or calling your utility company. Schedule a home energy assessment. After the assessment, you will receive a list of recommended improvements and the associated rebate amounts. Work with a participating contractor to complete the improvements. The contractor typically handles the rebate paperwork, and the rebate is applied to your bill or sent as a check. The process is straightforward and the savings are significant.

If your heating and cooling bills are consistently high, even with moderate thermostat settings, your home may be poorly insulated. Attic insulation is the most important area to check. In many older South Jersey homes, the attic insulation is inadequate by modern standards. Adding insulation can reduce heating and cooling costs by 15 to 25 percent. A home energy assessment will identify the problem areas.

If your HVAC system is more than 15 years old, it is likely operating at a much lower efficiency than modern systems. An aging system has to work harder to maintain the same temperature, using more energy. If your energy bills are rising even though your usage has not changed, your HVAC system may be the culprit. A professional tune-up can improve efficiency, but replacement may be the better long-term solution for very old systems.

Air leaks around windows, doors, attic hatches, and where pipes enter the home can significantly increase your heating and cooling costs. A simple test is to hold a lit incense stick near windows and doors on a windy day. If the smoke wavers, you have an air leak. Sealing these leaks with caulk, weatherstripping, or spray foam is one of the most cost-effective improvements you can make.