Calculating the PSEG Commercial Price to Compare

Commercial PSE&G customers tired of paying high electric bills should consider shopping around for a competitive electric provider. Attempting to figure out what the PSE&G Price to Compare rate is for a business can appear frustrating for business owners who are unfamiliar with the New Jersey energy choice shopping procedures. The PSEG commercial electric bill has a list of charges that include distribution, generation, capacity, and transmission costs. Unfortunately, unlike many other utility companies where energy choice has been a success, PSE&G does not offer a clear cut Price to Compare that can be used while shopping for a competitive electric supplier. Despite the confusion, customers do not need to be discouraged from shopping for competitive commercial electric rates. Calculating the PSE&G Price to Compare rate for a specific business is easier than one might think.

The PSE&G bill is split between two main sections that include charges for distribution and supply. The distribution charge is the cost of transporting the electricity from your local utility (PSE&G) to the physical place of business. Distribution charges are regulated expenses managed by the New Jersey Board of Public Utilities. The supply charge is the generation cost that includes the cost of transmission from the generation facility to the PSE&G service area lines and wires. Supply charges are the deregulated portion of the electric bill.

Finding out what the PSE&G supply charge, or Price to Compare rate, is for a specific commercial property simply entails dividing the Sub-Total Supply by the Total kWh (see image to the right). This calculation will provide the exact PSE&G Price to Compare rate that can be used while shopping for a competitive energy supplier. Depending on a business’s energy consumption and demand ratios, savings of as much as 10-20% can be obtained by locking in a competitive rate offered by a licensed New Jersey energy supplier.

Shop current PSEG commercial electric rates by selecting your business size below. All rates are offered by electricity suppliers who have been licensed by the New Jersey Board of Public Utilities.

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