PSEG electricity customers are finally able to save money on their electricity bills by choosing a lower rate than the default PSEG rates.
In recent years, electricity suppliers had been slow to enter New Jersey electricity market. Now that the electricity companies are able to offer electric rates that are lower than the utility basic generation service rates, companies have entered the market and are offering their service to PSEG customers.
To see if money will be saved, customers should look at the “Supply” section on their PSEG bill. There they will find the electric rates that can be compared to alternative electricity company offers. Electric savings are currently being offered by as much as 12.4%, but not all offers result in saving, so it is important for customers to compare rates. Some PSEG bill payers are even choosing to pay more on their electricity bill for the right to buy 100% wind power or other forms of green energy.
Customers who shop for lower power rates might also find promotions that can further sweeten the deal on top of electric bill savings. PSEG customers will still receive their electric bill from PSEG even after they switch electric suppliers.
The best offers, (lowest rates plus promotions) for fixed and variable electric rates, that we have found are below:
Electricity customers who are serviced by Metropolitan Edison Company (Met-Ed) are preparing to shop the competitive electricity market for the first time. On January 1, 2011 electric rates for Met Ed customers, that had previously been capped, will expire giving customers the option to stay on the Med Ed default supply price or shop the market for lower electric rates.
It is expected that Met Ed customers who compare electricity rate offers from electricity companies will be able to save money versus the Met-Ed default price to compare rates. Electricity shopping will result in lower electric bills for those electric customers who are able to lock in lower electric rates than the new Met Ed rates.
Met Ed residential customers should take the time to compare all electric offers. It is expected that some electric companies will offer residential Met Ed customers variable rates that fluctuate with market rates, while other electric companies will offer fixed electric rates for up to two years that will give households price protection. Other markets in Pennsylvania have seen low variable introductory rates followed by immediate spikes. Sometimes a slightly higher fixed electric rate will save you a lot more in the long run compared to a lower variable electric rate.
Met Ed commercial and industrial customers will be given a variety of electricity rate options. As Met Ed moves from a regulated environment to a competitive market, it will be extremely important that businesses take the time to educate themselves on all of their electricity supply options. The right choice can save them thousands on their electricity bills.
Connecticut Light and Power (CLP) customers can reduce their home electricity bills by finding a cheaper electric rate for the supply section on their electric bill. There are still a number of Connecticut residences who are unaware of their electricity choice options.
For CL&P residential customers, you can find your competitive electric rate underneath the section “Supplier Service Detail”. If it says “Generation Service Charge $0.11051 then you are paying the CL&P default price to compare rate. This is the rate that you should compare against alternative electric rate offers.
Compared to the default rate, MX Energy is offering the lowest fixed electric rate at $0.095. This represents a savings of 14% that you can save on your monthly electric bill by taking the time to compare electricity companies. CLP continues to manage the delivery of the power and will also continue to send out the monthly electric bill even after you choose a lower electric rate.
Connecticut set up their deregulated electricity market so that the Utilities (CLP and UI) do not care if their customers leave their default service and choose an alternative electric company. Connecticut Light and Power, as well as United Illuminating Company, receive their profits through the delivery charges on your bill which are still regulated by the state.
For the lowest fixed rate in Connecticut, click here and type in your zip code.
In Central Pennsylvania, electricity customers of PPL are finding that they can lower their monthly electric bill by comparing electricity companies and finding a competitive electric rate.
The price to compare rate for PPL residential customers, also known as the default supply rate, is $0.10448 per kilowatt hour. The lowest fixed electric rate that we have been able to find for customers in the PPL area is $0.0889 per kilowatt hour, an easy way to save 15% off of the electricity bill. To lock in these savings go to Champion Energy. The plan locks in the low rate for 12 months.
A month-to-month variable rate with 11% savings versus the PPL price to compare rate is available with Verde Energy, also known as Low Cost Power. They also have a $50 cash back bonus program when you sign up with them.
The price to compare rate is expected to be lower in 2011, but it is unlikely it will go well below 10 cents, if at all. Competitive electric rate offers allow residential customers to lock in low fixed rates for up to two years, allowing protection from rates increasing drastically.
The electricity wholesale market is highly correlated with the natural gas market. In recent years the natural gas market has been extremely volatile. In Texas, where electricity has been deregulated since 2002, customers saw all time high electric rate prices in the summer of 2008 followed by some of the lowest rates just one year later in the summer of 2009.
