NJ Electric Suppliers
Over the past year electric suppliers have entered the residential market in New Jersey. Though New Jersey deregulated their electricity market in 2003, NJ electric suppliers did not start offering service to residential customers until recently. Electricity companies were unable to offer power prices that were lower than NJ utility default rates, causing them to stay on the sidelines. All of that has now changed as electricity prices have come down and NJ utility default rates have remained high.
NJ electric suppliers are now active and offering competitive electric rates in areas that are served by PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric. These incumbent electric utility companies are still responsible for the save and reliable delivery of electricity to homes and businesses, however they are not concerned with the generation rates that their customers pay. With electric choice, customers are obligated to take the time to shop and compare electric suppliers. Those who do not pay a default electricity rate through their utility company such as Jersey Central Power and Light (JCP&L).
Competitive electricity rates offered by NJ electric suppliers are significantly lower than utility default rates. Atlantic City Electric and JCP&L customers have seen savings as high as 15% in 2011. In North New Jersey, Rockland Electric customers have seen competitive electric choice offers that are 20% lower than their default rates. PSE&G customers have seen consistent offers that will save them 10-12% on their monthly PSEG electric bill.
Some NJ electric suppliers offer a fixed electricity rate that is anywhere from 10 to 20 percent lower than utility default rates. Because the NJ utility default rates are set for one year at a time, locking in a fixed rate that is lower than the default rate guarantees the customer with electric bill savings. The fixed electric rate also provides price protection for customers worried about variable prices going up or default rates increasing for the next year.
Other NJ electric suppliers offer a variable rate. The variable rate offer will usually be less than the utility default rate. However, with no price ceiling, the rate can go up very quickly. The variable electric rate does not provide the customer with price protection like fixed electricity rates.
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