New Jersey

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:


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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.


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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.


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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.


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Atlantic City Electric Customers Power Shop for Savings

February 2, 2012

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 […]

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Compare Power Companies in PSEG

December 9, 2011

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 […]

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Atlantic City Electric Bill Pay

October 19, 2011

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 […]

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Shop for Electricity in Elizabeth NJ

August 13, 2011

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. […]

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PSEG Summer Electricity Savings

July 13, 2011

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 […]

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Business Electricity Companies

May 12, 2011

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 […]

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