PSEG New Jersey
Energy customers of the utility company PSEG in New Jersey are able to shop for competitive electricity and natural gas rates. Comparing electricity rates can result in big savings on the electric bill for PSEG customers. Though the overall switch rate has been relatively slow, the fact remains that the PSEG electric bill can be lowered by about ten percent for residential customers and even more for commercial and industrial electricity customers.
PSEG electricity customers who do no shop for competitive electric rates pay the PSEG default rate known as the basic generation service rate for the supply section of their electric bill. This default rate is a pass through charge for PSEG, meaning that they do not profit by offering the rate to their customers. PSEG wants their customers to shop and choose an alternative electricity supplier. PSEG customers are still finding this fact hard to believe.
With the launch of electricity deregulation in New Jersey, the incumbent utility companies like PSEG have been given the task of acting as the regulated electricity delivery company for their customers. In essence, switching electric suppliers does not mean that you are leaving PSE&G. PSE&G continues to serve as the local utility company and continues to send the same monthly electric bill. The charges on the PSEG electric bill under “Delivery Charges” are the charges that PSEG sees a profit from. These rates are regulated by the state as electricity delivery (distribution) is still a regulated business. Only the generation, or supply, of electricity has been deregulated.
Competitive electricity rates that are lower than PSEG default rates are now available for both residential and business customers.
Current Competitive Electric Rate Offers in the PSEG Area: