PSEG Business Electric

Many small and medium size businesses in New Jersey are still unaware of electricity choice in the state. Many that are aware of electric choice do not realize that there are savings available for customers who shop and compare electric companies.

Much of the confusion in the PSEG territory revolves around a misunderstanding of how to calculate the PSEG default rate or price to compare rate. Here is what business electricity customers need to know:

1. PSEG is a utility company. This means that they are responsible for the delivery of the power which also includes the maintenance of the electric lines and wires.

2. PSEG is not in the business of offering competitive electric supply rates. However, they are required by the state to offer default electric supply rates for customers who do not shop for competitive prices.

3. PSEG does not care if you choose another electric company for the supply service. Their profits from you are refined to the delivery portion of your bill which are charges that remain regulated. They do not profit from the supply section of the bill.

Now about that default rate:

1. The default rate includes the energy charge (measured in KWh), capacity (measured in KW), and transmission (measured in KW).

2. To measure your exact rate for a given month, you must take your “total supply charge” and divide it by your “total KWh”.

Unlike other markets in New Jersey, such as JCP&L and Atlantic City Electric, the default supply rate for businesses is not one stated rate. Instead, it is broken up into the three charges stated above. Because two of the charges (capacity and transmission) are measure in dollars per KW, it takes a little bit of math to figure out the total price to compare.

Most competitive rates offered will include all three components. In order to see what type of savings are available in PSE&G for businesses, a complete savings analysis needs to be done.

To receive a savings analysis for your business, send a copy of your electric bill to i[email protected] or fax to 972-692-7630 with the title (PSEG Savings Analysis).

Most PSEG business electric customers can save 10-18% on their electric bills.

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