Best Alternative to PSEG

With the recent announcement by PSEG that they will be raising their basic generation service rates for their residential and small business customers, many consumers are starting to search for the best alternative to PSEG. Through New Jersey energy choice laws, all PSEG customers have the option to shop the competitive electricity market for an alternative electricity supplier. While these companies are alternatives to PSEG, the quality of the power is the exact same as the power continues to be delivered though the same power lines and wires.

New Jersey has set up a fairly simply electricity choice market where utilities such as PSEG continue to deliver power to their customer base no matter who the customer chooses to supply the power. The alternative electricity companies offer rates to customers that represent the electricity generation and transmission portion of the electric bill. PSEG and the other three major New Jersey utilities receive revenues through the distribution charge on the electric bill which remains regulated by the New Jersey Board of Public Utilities.

The best alternative companies to PSEG are those that offer a fixed electric rate that is lower than the basic generation service charge. If a customer does not choose an alternative supplier they pay the basic generation service charge for power supply which is the PSEG default rate. Finding an electricity supplier that offers a rate lower than the default rate will result in a lower PSEG electric bill. However, it is also important that the rate is fixed for at least several months, otherwise the electricity supplier will likely increase the rate after the initial month.