Atlantic City Electric residential customers paying default rates for their power supply service experienced a rate reduction of 5.7% in June. The Atlantic City Electric price to compare, the price consumers pay for electricity generation service who have not shopped for competitive rates, had been at $0.1224 since February of 2012. On June 1, that rate dropped to $0.1154.

While the rate reduction gives a slight relief to price to compare paying customers, competitive energy suppliers were quick to point out that these customers can save even more by shopping for competitive electric rates with current savings as high as 18% off of the ACE price to compare rate. Through New Jersey energy choice laws consumers have the ability to choose who supplies their home with electricity.

The energy choice laws maintain Atlantic City Electric as a regulated utility for southern New Jersey, responsible for delivering power to homes and businesses within the region. However the generation supply, the cost to produce the electricity at retail prices, is open for consumers to shop for the best prices. Those consumers who do not participate in New Jersey electricity choice automatically pay the price to compare rates offered by their local utility company. Competitive electricity prices provide an easy way for customers to significantly lower their Atlantic City Electric bill. Even after choosing a competitive supplier, Atlantic City Electric continues to deliver the monthly electric bill to their customers. The competitive electric rate simply takes the place of the price to compare supply charge.

Here are some of the lowest current competitive electricity rates in the Atlantic City Electric service territory.

Atlantic City Electric customers are finding that they can lower their electric bill by shopping for competitive priced power. The southern New Jersey utility serves over 480,000 residential customers. However with the passage of the New Jersey Energy Competition and Choice Act, the role of Atlantic City Electric has changed.

Prior to New Jersey energy choice Atlantic City Electric was responsible for all phases of power consumption for almost all citizens living in the bottom half of the garden state. This included the purchasing of electricity generation for their customers, and then the delivery of the power to businesses and homes. Atlantic City Electric was also of course responsible for responding to power failures and emergencies, as well as reading the meter and billing.

Now that energy choice is in full effect, Atlantic City Electric still maintains the majority of the roles they had before. They are still responsible for power delivery, responding to emergencies, meter reading, and billing. The aspect that has changed is that they are no longer responsible for buying the electricity generation supply for their customers. Energy choice allows customers to purchase their own generation supply, meaning that they can shop for the lowest electric rate or choose to buy power that comes from a specific generation type, such as wind power.

Customers who do not shop for low electric rates pay a default rate for their electricity supply through Atlantic City Electric. This default rate is determined by auctions held by Atlantic City Electric for competitive energy companies. ACE does not profit from the default rate and instead passes on the revenues to the competitive energy companies who have won the previously held auctions to serve default paying customers. This is why ACE does not care if their customers switch electric suppliers. ACE does not care if their customers pay less for electricity supply because their revenues and profits are derived from the regulated electricity delivery charges.

For customers looking to lower their Atlantic City Electric bill, they can compare electric rates below to find low offers:

Default supply electric rates increased on October 1, 2011 by 18% for residential customers of Atlantic City Electric. The price increase has spurred an increase in electric switch activity in the southern part of New Jersey where Atlantic City Electric is the regulated utility company. While they remain the regulated monopoly for electricity delivery, customers do have a choice of who they buy their power supply from, and currently competitive rates are far lower than the ACE default rates.

The default rate includes all aspects of the electricity generation supply on the electric bill. Switching electric suppliers results in the selected rate replacing the default rate on the bill which is called the basic generation service (BGS) charges.

Atlantic City Electric customers still paying default service with the utility can control the increase by shopping for competitive electricity rates. The New Jersey Electricity Competition and Choice Act gives Atlantic City Electric customers the option to switch electric supply companies. We recommend choosing a fixed electric rate so that you do not have to worry about your rate increasing dramatically, which often occurs with variable rate options.

New Jersey power consumers are finding savings through the state’s electricity choice program.  Electric choice in New Jersey has brought in more than a dozen electric suppliers offering electricity rates to commercial and industrial customers over the last several years.  Now electricity suppliers are starting to offer residential rates in New Jersey.

NJ power shoppers who take the time to compare electricity offers are finding the best deals.  In addition to low electric rates that offer significant savings versus utility default rates, some electric suppliers are offering incentives and promotions to entice customers to switch.  Despite electric bill savings of over 20% in some cases, less than 8% of New Jersey residential electric customers have switched suppliers.

Those who have not switched continue to pay a high default rate with their local electric utility company – PSEG, JCPL, ACE, Rockland.  PSEG and JCPL have been pushing power shopping and choice to their customers to help spread the word.  Though New Jerseyans now have a choice of who supplies their electricity, the power continues to be delivered by the local utility companies.  PSEG, JCPL, Atlantic City Electric, and Rockland Electric do not lose the customer when they switch electric suppliers.  Instead, the utility company continues to bill the customer and charge regulated rates for power delivery.  The only thing that changes is that instead of paying the high default supply rate, the customer pays a competitive supply rate.  If that competitive rate is lower than the default rate, than the customer saves money on their electric bill.

Here are some current low power rates in New Jersey:
PSEG Rates

JCPL Rates

Atlantic City Electric Rates

The Atlantic City Electric company, the electricity utility company serving the majority of southern New Jersey, has the highest electric default rates in the country among utilities serving electricity deregulated markets.  Current residents serviced by Atlantic City Electric who have not chosen a competitive electric supplier for the supply portion of their energy usage, are paying the Atlantic City Electric price to compare rate of 13.15 cents per kilowatt hour.

Customers can save 13% by paying a fixed rate of 11.40 cents per kilowatt hour.  The offer also includes a Visa Prepaid Gift Card.

Despite the large savings available for Atlantic City Electric residential customers, well under 10% of them have switched electric suppliers to companies offering lower electric rates.  Much of the resistence is centered around the unfamiliarity that New Jersyans have with electricity choice.  Most people might be surprised to find out that the Atlantic City Electric company supports energy choice and wants their customers to shop for lower rates. Those who switch electric suppliers will still receive their electric bill from Atlantic City Electric.  The only thing that changes is the Atlantic City Electric price to compare rate, or default rate, is replaced by the rate offered by the electric supplier of the customer’s choice.

Here are current competitive electric rates:

Residential customers who are serviced by Atlantic City Electric can currently save up to 22.5% on their electric bills. This is a result of the New Jersey Electricity Choice and Competition Act that went into effect in 2003.

Savings above 10% are available for the first time for Atlantic City Electric customers because retail electric rates in the competitive market are lower than current Atlantic City Electric default rates, also called Basic Generation Service (BGS) rates.

When an Atlantic City Electric customer chooses an alternative electric supplier, they will continue to receive their bill from Atlantic City Electric, who remains the customer’s electricity delivery company and who is still responsible for the maintenance and management of the lines and wires throughout the southern New Jersey Electricity grid.

See offers from competitive New Jersey Electricity Companies Below:

Seven years after New Jersey officially deregulated their electricity market, residences of the state are finally seeing competitive electric rates that can save them real dollars off of their monthly electric bill.

If you are a customer of PSE&G, JCP&L, Rockland Electric, or Atlantic City Electric, savings can be found by shopping the competitive electricity market for lower prices.  Alternative electric suppliers had been slow to enter the New Jersey market for a variety of reasons.  However, a significant drop in wholesale electric prices combined with high utility default rates, have given electricity companies a great reason to get licensed by the state and market their services and rates to New Jersey customers.

Residential customers can choose between a variable electric rate that can fluctuate month to month but gives the customer the option to leave the service at any time, or a fixed electric rate that locks in your rate for a specific period of time, usually anywhere from 4-24 months.

Here are the residential electricity rates available in New Jersey at this time:
PSEG Rates

JCPL Rates

Atlantic City Electric Rates

Some of the companies are running introductory offers with cashback bonuses.

For a low variable rate with a $50 Cashback Bonus introductory offer, click here.
Low fixed rate offers with a Visa Prepaid card up to $75 can be found here

In most cases, including the offers above, even after you switch electric suppliers you will still get your monthly electric bill from your utility company.  The utility companies (PSEG, JCPL, Rockland, Atlantic City Electric) are still regulated lines and wires company and are responsible for billing residential electric customers.  They only provide a default electric rate to residential customers because they are required to do so by the state under the terms of the New Jersey Competition and Electric Choice Bill.

New Jersey electric customers have more rate options than ever before.  The four local utilities – PSE&G, JCP&L, Atlantic City Electric, Rockland Electric – all have default electric rates that are higher than competitive market rates for power.

Despite this opportunity for savings, only 3.3% (as of September 2010) of all New Jersey customers have switched away from default service on to lower rate structures.  Larger businesses have been quicker to switch as the Board of Public Utilities in New Jersey reports about 72% of the states largest customers (those using above 10o0 KW demand) have contracted out with alternative suppliers.

The consumers who can really benefit from electricity deregulation in NJ are the small business and residential customers.  The switch rate with these classes are extremely low.  Though New Jersey has had a deregulated electricity market for several years now, there has only been real savings opportunities available over the last 20 months or so.  NJ Electricity choice is still a new idea for many NJ residents.

What people in New Jersey should understand is that their local utility company is no longer responsible for their supply charges.  The utility companies, such as PSE&G and JCP&L, want their customers to shop for lower electric rates.  They do not profit off of the default service that they offer to customers who do not shop.  The utility companies are now soley in the business of delivering power.

We have found that most small businesses in New Jersey can expect to see savings between 10-20% if they take the time to shop the electricity market and compare prices.  Residential customers, depending on their utility, can see savings between 5-15%.

ElectricityWatch recommends customers look for electric prices that are fixed.
PSEG Rates

JCPL Rates

Atlantic City Electric Rates

Lower electric rates are available for Atlantic City Electric (ACE) customers who are on the utility’s default price to compare rate.  Commercial and industrial electric customers can save a modest 10-15% off their current rates by signing a fixed contract rate with a competitive alternative electric provider.

Depending on the rate class and usage patterns, ACE business customers are currently paying a default rate between 10.77-12.15 cents per KWh http://www.atlanticcityelectric.com/business/choice/nj/compare/.

Competitive rates in the region are being locked in for 12-36 month terms at rates as low as 9.7 cents per KWh.  Shorter term contracts are also available for those consumers who want to save money right away in the summer, but wish to wait and see where the long term default rates are heading.

South New Jersey electric customers can save money on their electricity bills by getting off of the high default rates and shopping the competitive market.

Contact us for more information about electricity deregulation.

Southern New Jersey commercial and industrial customers can now see significant savings on their electric bills if they choose to shop the competitive market for an alternative supplier.  Savings as much as 22% off of the basic generation service default rates have been achieved for many businesses.

Many customers on the MGS and AGS rate classes continue to pay the ACE default rates that are over 12 cents per KWh.  Current fixed rates can be locked in for 12 month terms as low as 10 cents per KWh.  While many businesses are starting to become wise to deregulation, the majority of ACE customers are still unaware or confused about the savings available.  We encourage all businesses in the ACE utility service area to shop for a competitive supply contract.

Update:  12/23/2010

Atlantic City Electric residential electricity customers can save 22% off of their default rate with a variable rate and $50 Cash back bonus by going here

Fixed electric rates with savings between 15-22% (plus up to $75 Visa Prepaid Card) can be found here