Lower My PSEG Bill
New Jersey energy customers serviced by the state regulated utility PSE&G are quickly learning that they can save money on their electric bills by choosing an alternative electricity supplier. Competition in the New Jersey energy markets continues to improve as more competitive energy companies have begun offering service in the state, resulting in an overall downward push on electric prices.
How It Works:
The PSEG bill is divided into two separate sections which include “Delivery Charges” and “Supply Charges”. The delivery charges are expenses that PSE&G charges consumers for distributing the power from the generation facilities to homes and businesses. These charges remain regulated by the New Jersey Board of Public Utilities and are the same no matter which electric supplier a customer chooses.
The second part of the PSEG bill are the supply charges. This is where consumers have a choice and are able to shop the competitive market for the best electric rates which can mean different things to different people. For some people it means finding the cheapest electricity price, for others it might mean finding a company that offers renewable sources of energy such as wind or hydro.
Customers who do not choose an alternative electric supplier pay a default rate called the basic generation service rate with PSE&G. The basic generation service rates are determined by a three year auction process held by the state for competitive energy suppliers. These energy suppliers bid for the ability to provide energy service to customers who have not shopped for their own energy needs. The revenues for the default service are collected by PSE&G and then passed through to the winning bidders. Many people believe that switching electric suppliers will cause PSE&G to provide worse service if a power failure occurs, however the truth is that PSE&G does not profit from the default supply rates. They do not care if their customers switch suppliers because their profits come from the regulated delivery charges.
If you are looking to save money on your PSEG bill you can compare electric rates below: