The number of PSEG electricity customers who are purchasing their power from competitive suppliers remains below 14% as of May 2013. Though the number of competitive power shoppers has steadily increased, the overall electric switch numbers are low compared to other competitive power markets in the United States. The slow number of shoppers has occurred despite rising PSEG default rates and low competitive electricity rates that are yielding electric bill savings above 20% in some cases.

For those PSEG power customers who have accepted New Jersey electricity choice into their lives, the result has been lower PSEG electric bills and price security into the near future. There are currently 246,000 residential customers in the PSEG service area buying their power from competitive energy companies out of 1,835,000 households in the area. These consumers have taken the time to compare electricity rate offers and find the best offer that fits their specific needs.

Many people have pointed to the slow growth of the New Jersey electric choice market to the limited marketing the state has implemented to educate their citizens. In contract, the Texas and Pennsylvania state governments have marketed electric choice with consumer friendly websites. In both states residential electricity switch percentages are hovering around 50%.

Others have pointed to the difficulty in finding the correct identification number on the PSEG electric bill to submit a switch request. In Pennsylvania the number needed to submit a switch request for the two largest electric utilities PPL and PECO Energy, is a simple 10 digit account number clearly visible at the top of the electric bill on every page. In contrast, the number needed for PSEG electric switch requests is the POD ID number which is an 18 digit number that follows the letters “PE” and can only be found in one small place situated mid-page. Some elderly consumers have complained that once they actually find the number the print is too small to even read. Furthermore, if PSEG also provides gas to the customer, a second POD ID exists on the bill for gas service which the customer often confuses as the electric POD ID.

Though electricity choice in New Jersey has had its hurdles, the private sector has stepped in to help push the ball that is already rolling slowly. Competitive suppliers are offering lower electricity prices and information sites such as NJelectricity.org have been developed to help educated New Jersey consumers about their energy choice options.

Competitive PSEG electricity rates updated daily:

While the overall electric switch percentages continue to increase in New Jersey, the portion of PSEG customers participating in energy choice has lagged behind that of the other state utilities. The electric switch percentages measures the portion of customers in a service utility area who are taking part in New Jersey electricity competition and buying power from a competitive supplier. Total active New Jersey electricity shoppers increased by 16,772 customers to 458,833 from May 2012 to June 2012.

Out of the three biggest New Jersey electric utilities – PSE&G, JCP&L, Atlantic City Electric – the PSE&G switch rate is the lowest at 11.8% compared to over 16% for the other big two utilities. The gas switch statistics show a similar story with only 6.64% of PGE&G gas customers taking the time to shop for competitive rates. The next largest gas utilities in the state, South Jersey Gas and New Jersey Natural gas, have switch rates of 10% and 8% respectively.

One theory of the lower switch numbers for PSE&G, the states largest utility for both electric and gas, is the complicated utility identification numbers found on the PSE&G bill needed to complete a switch to a competitive supplier. In order to switch to a competitive electricity company, the customer must find their 18 digit electric POD ID number found on their bill. Another similar 18 digit gas POD ID number exists as well on the bill for consumers looking to switch gas suppliers. ElectricRate.com, an energy comparison site, has reported that many PSE&G customers mistakenly enter in their PSE&G account number when attempting to make a switch. Competitive energy companies are unable to complete a switch request with just an account number according to New Jersey Board of Public Utilities rules. Many consumers struggle to find the correct POD ID on their electric bill and give up on making the switch. In some cases, the customer may accidentally give their gas POD ID when signing up for electric service or vice versa.

Customers willing to take the time to find the correct POD ID number on their PSE&G bills will reap the benefits with large energy savings. Below are current competitive electric rates available in the PSE&G service area.

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.

Summer electricity rates for PSEG customers on supply default rates have been announced. The PSEG default rates are named Basic Generation Service (BGS) charges by the New Jersey Board of Public Utilities. Customers who do not shop for competitive rates, offered through the New Jersey Electricity Choice and Competition Act, pay the BGS charges. Those customers who do shop for competitive electricity prices can find rates that are significantly lower than the BGS charges resulting in a lower PSEG electric bill. The competitive rates include all charges listed under the “Electricity Supply” section on the PSEG electric bill.

All BGS charges on the PSEG bill include the state SUT tax. The New Jersey Board of Public Utilities requires all competitive electricity companies to include the SUT in their rate offerings to residential customers so that consumers can compare PSEG electricity rates smoothly and accurately, eliminating potential hidden fees that companies might otherwise try to impose.

Starting on June 1, 2012 residential customers paying BGS rates will pay $0.1097 per KWh for their first 600 KWh and $0.119038 for everything in excess of 600 KWh. Most residential properties bigger than a one bedroom apartment will consumer more than 600 KWh. The average BGS customer will pay over $0.1100 on their electric bill this summer. Competitive rates (see below) can reduce the rate per KWh tremendously resulting in a lower PSEG electric bill.

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):

PSEG electricity customers can save as much as 17% on their electric supply bills by selecting an alternative electric supplier. Electricity shopping has been picking up steam in recent months as more competitive electricity companies have filed and received electricity supplier licenses from the New Jersey Board of Public Utilities. However, many consumers are still uninformed that New Jersey in now an electric choice market, and even more are uninformed about just how much they can save.

In the past, surveys done in New Jersey regarding market awareness on electric choice has shown that many people just don’t want to go through the “hassle” of shopping for electricity because the end result is only a few dollars a month in savings. However, as competition has heated up and pushed competitive pricing down, the savings are now becoming quite more significant, especially for medium and large houses.  In the past, electricity savings in New Jersey had been  reserved for the largest commercial and industrial customers in the state.  Things have certainly changed as more and more alternative suppliers compete for the 3.3 million New Jersey residential electricity consumers.

PSEG customers using 1,000 KWh would save $20 a month ($240 per year) by choosing the lowest rate available compared to the PSEG default rate.  Homes using 2,000 KWh would save more than twice that ($46.60 a month and $559.20 a year) because PSEG default rates get higher the more power you consume.  A good rule of thumb for figuring out your average monthly KWh is to figure you will use 1 KWh for every square foot of home (1,500 square foot home would use 1,500 KWh average per month).

 
Current Rate Offers From Competitive Suppliers (Updated Daily):

New energy choice markets in the northeast (Pennsylvania, New Jersey, Maryland, Connecticut) as well as existing deregulated areas such as Texas and Illnois are making some business electricity companies household names as the battle for market share has heated up.

Electricity companies who offer electric service to commercial and industrial clients buy power commitments in advance for the businesses and then sell it back to them in the form of a monthly electric bill.  Essentially these business electricity companies act as banks for large energy users.  As retail electric suppliers, they buy blocks of power on the wholesale market and then sell it to the customer with a retail markup.  This is why electricity companies require businesses to sign electricity contracts that locks them into service with the supplier for the term of the contract.

However, some of these business electricity contracts can be confusing and misleading to executives who are looking at purchasing energy for the first time.  Some of the misleading practices include “passing through” part of the charge to other sections of the bill,  thus making the rate appear lower than it really is.  Also, electricity companies can add unnecessary meter charges that can add up for businesses that have multiple meters.

It is important for businesses to do their due diligence or work with a energy consulting company who has a clear expertise in the field of deregulated electricity.  Electricity brokering companies can compare electricity contracts, rates, and suppliers.

Businesses should be weary of electricity companies offering variable rates that are contract free.  Usually the offer will not guarantee any type of rate allowing the electricity supplier to charge whatever they want in any given month.