Electricity prices increased for roughly 1.6 million residential customers in New Jersey who are serviced by PSEG on June 1. In response to auction results, PSEG summer rates for their basic generation service price went into effect on June 1 and will last through the end of September. The basic generation service price includes the generation and transmission components of the monthly PSEG electric bill.
The hike will be most significant to residential customers who live in large houses. From October 1, 2015 through May 31, 2016 the residential basic generation service rate was $0.121264 per KWh. On June 1, 2016 that price shot up 13.5% to $0.137679 for usage above 600 KWh a month. Nationwide, the majority of residences that are larger than two bedroom apartments, or 900 square feet, consumer over 600 KWh a month. The first 600 KWh will charged a price of $0.127933, a 5.5% increase from the previous $0.121264 basic generation service price. Essentially, the more power a household consumes, the more significant the price hike will be in terms of average rate per KWh on the monthly PSEG electric bill.
PSEG residential customers do have the option to shop the competitive New Jersey electricity market for lower prices. Competitive prices have been available over the last year. Many competitive electricity suppliers are yielding savings well above 10% off of the new basic generation service price, giving customers new to electricity shopping a high incentive to shop. Surprisingly only 9% of residential customers serviced by PSEG have switched off of the basic generation service price an onto a competitive plan.