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:
As the competitive electricity market takes shape in New Jersey, customers of PSEG are seeing more options as more power companies compete for market share. Electricity customers of PSEG can now compare power companies in order to find cheaper electric rates. While this still might be a new concept for some, the NJ BPU is in full force in monitoring the active electricity shopping market that was created by the New Jersey Electricity Choice and Competition Act.
Electricity customers of PSEG are able to shop for lower rates on the supply section of their electric bill. Savings versus the default electric rates for residential customers have been seen as high as 20%. The delivery section of the PSEG electric bill remains the same no matter which electric supplier is chosen. While electricity choice deregulated the generation supply portion of the electricity business, the delivery (distribution) of electricity has remained regulated. This means that PSEG remains responsible for the power lines and wires of their territory, and is in charge of responding to power emergencies.
Electricity choice in PSEG and other New Jersey utilities (JCPL, Atlantic City Electric, Rockland Electric) simply allows consumers to compare power companies and purchase electricity at lower prices and terms that meet a customer’s specific needs.
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.
The ability to shop for electricity is proving consumers with multiple energy supplier options in Elizabeth, NJ. Taking the time to find competitive electric rates can result in huge savings on the PSEG electric bill.
The most efficient and time saving method to compare electric rate prices is to use an electricity rate comparison website. This allows consumers to instantly compare offers for the lowest rate, term length, and savings amount versus the utility default rate. For some customers shopping for electricity means finding the lowest electricity rate. However, the consumer should also consider how long the rate will be locked in for and how much, if any, the termination fee is.
Often the lowest rate offered will be for longer terms of 18 or 24 months. Locking in the lowest rate for two years might be the best thing for a home owner who is not planning on moving anytime soon. However, for a college student who has just moved into an apartment with a 10-month lease, the better option might be to choose an electricity company offering a low variable rate, or lock in a fixed rate for 6 months which will then change to a variable rate when the six months are up.
Power customers can also shop for renewable electricity offers where the electricity is generated from wind power farms. These electric rate prices might be higher than the lowest electric rate available, however some shoppers are willing to pay the extra charge for the ability to buy green power.
Energy choice in New Jersey has provided customers living in Elizabeth the ability to shop for all of these electricity options and more. The majority of Elizabeth electricity customers have PSEG as their utility company. Even after a competitive energy company is chosen, PSEG will continue to send your monthly electric bill, maintain the lines and wires, and charge you the distribution expenses found on your bill under the “Delivery” section. The delivery prices remain regulated by the New Jersey Board of Public Utilities and are the same no matter which electric company is chosen to provide you with your competitive supply rates.
Here is a list of current competitive electricity prices for Elizabeth customers who have PSEG as their utility (updated daily):
