Atlantic City Electric residential customers paying default rates for their power supply service experienced a rate reduction of 5.7% in June. The Atlantic City Electric price to compare, the price consumers pay for electricity generation service who have not shopped for competitive rates, had been at $0.1224 since February of 2012. On June 1, that rate dropped to $0.1154.

While the rate reduction gives a slight relief to price to compare paying customers, competitive energy suppliers were quick to point out that these customers can save even more by shopping for competitive electric rates with current savings as high as 18% off of the ACE price to compare rate. Through New Jersey energy choice laws consumers have the ability to choose who supplies their home with electricity.

The energy choice laws maintain Atlantic City Electric as a regulated utility for southern New Jersey, responsible for delivering power to homes and businesses within the region. However the generation supply, the cost to produce the electricity at retail prices, is open for consumers to shop for the best prices. Those consumers who do not participate in New Jersey electricity choice automatically pay the price to compare rates offered by their local utility company. Competitive electricity prices provide an easy way for customers to significantly lower their Atlantic City Electric bill. Even after choosing a competitive supplier, Atlantic City Electric continues to deliver the monthly electric bill to their customers. The competitive electric rate simply takes the place of the price to compare supply charge.

Here are some of the lowest current competitive electricity rates in the Atlantic City Electric service territory.

Summer electricity rates for PSEG customers on supply default rates have been announced. The PSEG default rates are named Basic Generation Service (BGS) charges by the New Jersey Board of Public Utilities. Customers who do not shop for competitive rates, offered through the New Jersey Electricity Choice and Competition Act, pay the BGS charges. Those customers who do shop for competitive electricity prices can find rates that are significantly lower than the BGS charges resulting in a lower PSEG electric bill. The competitive rates include all charges listed under the “Electricity Supply” section on the PSEG electric bill.

All BGS charges on the PSEG bill include the state SUT tax. The New Jersey Board of Public Utilities requires all competitive electricity companies to include the SUT in their rate offerings to residential customers so that consumers can compare PSEG electricity rates smoothly and accurately, eliminating potential hidden fees that companies might otherwise try to impose.

Starting on June 1, 2012 residential customers paying BGS rates will pay $0.1097 per KWh for their first 600 KWh and $0.119038 for everything in excess of 600 KWh. Most residential properties bigger than a one bedroom apartment will consumer more than 600 KWh. The average BGS customer will pay over $0.1100 on their electric bill this summer. Competitive rates (see below) can reduce the rate per KWh tremendously resulting in a lower PSEG electric bill.

Atlantic City Electric customers are finding that they can lower their electric bill by shopping for competitive priced power. The southern New Jersey utility serves over 480,000 residential customers. However with the passage of the New Jersey Energy Competition and Choice Act, the role of Atlantic City Electric has changed.

Prior to New Jersey energy choice Atlantic City Electric was responsible for all phases of power consumption for almost all citizens living in the bottom half of the garden state. This included the purchasing of electricity generation for their customers, and then the delivery of the power to businesses and homes. Atlantic City Electric was also of course responsible for responding to power failures and emergencies, as well as reading the meter and billing.

Now that energy choice is in full effect, Atlantic City Electric still maintains the majority of the roles they had before. They are still responsible for power delivery, responding to emergencies, meter reading, and billing. The aspect that has changed is that they are no longer responsible for buying the electricity generation supply for their customers. Energy choice allows customers to purchase their own generation supply, meaning that they can shop for the lowest electric rate or choose to buy power that comes from a specific generation type, such as wind power.

Customers who do not shop for low electric rates pay a default rate for their electricity supply through Atlantic City Electric. This default rate is determined by auctions held by Atlantic City Electric for competitive energy companies. ACE does not profit from the default rate and instead passes on the revenues to the competitive energy companies who have won the previously held auctions to serve default paying customers. This is why ACE does not care if their customers switch electric suppliers. ACE does not care if their customers pay less for electricity supply because their revenues and profits are derived from the regulated electricity delivery charges.

For customers looking to lower their Atlantic City Electric bill, they can compare electric rates below to find low offers:

As the competitive electricity market takes shape in New Jersey, customers of PSEG are seeing more options as more power companies compete for market share. Electricity customers of PSEG can now compare power companies in order to find cheaper electric rates. While this still might be a new concept for some, the NJ BPU is in full force in monitoring the active electricity shopping market that was created by the New Jersey Electricity Choice and Competition Act.

Electricity customers of PSEG are able to shop for lower rates on the supply section of their electric bill. Savings versus the default electric rates for residential customers have been seen as high as 20%. The delivery section of the PSEG electric bill remains the same no matter which electric supplier is chosen. While electricity choice deregulated the generation supply portion of the electricity business, the delivery (distribution) of electricity has remained regulated. This means that PSEG remains responsible for the power lines and wires of their territory, and is in charge of responding to power emergencies.

Electricity choice in PSEG and other New Jersey utilities (JCPL, Atlantic City Electric, Rockland Electric) simply allows consumers to compare power companies and purchase electricity at lower prices and terms that meet a customer’s specific needs.

Default supply electric rates increased on October 1, 2011 by 18% for residential customers of Atlantic City Electric. The price increase has spurred an increase in electric switch activity in the southern part of New Jersey where Atlantic City Electric is the regulated utility company. While they remain the regulated monopoly for electricity delivery, customers do have a choice of who they buy their power supply from, and currently competitive rates are far lower than the ACE default rates.

The default rate includes all aspects of the electricity generation supply on the electric bill. Switching electric suppliers results in the selected rate replacing the default rate on the bill which is called the basic generation service (BGS) charges.

Atlantic City Electric customers still paying default service with the utility can control the increase by shopping for competitive electricity rates. The New Jersey Electricity Competition and Choice Act gives Atlantic City Electric customers the option to switch electric supply companies. We recommend choosing a fixed electric rate so that you do not have to worry about your rate increasing dramatically, which often occurs with variable rate options.

The ability to shop for electricity is proving consumers with multiple energy supplier options in Elizabeth, NJ. Taking the time to find competitive electric rates can result in huge savings on the PSEG electric bill.

The most efficient and time saving method to compare electric rate prices is to use an electricity rate comparison website. This allows consumers to instantly compare offers for the lowest rate, term length, and savings amount versus the utility default rate. For some customers shopping for electricity means finding the lowest electricity rate. However, the consumer should also consider how long the rate will be locked in for and how much, if any, the termination fee is.

Often the lowest rate offered will be for longer terms of 18 or 24 months. Locking in the lowest rate for two years might be the best thing for a home owner who is not planning on moving anytime soon. However, for a college student who has just moved into an apartment with a 10-month lease, the better option might be to choose an electricity company offering a low variable rate, or lock in a fixed rate for 6 months which will then change to a variable rate when the six months are up.

Power customers can also shop for renewable electricity offers where the electricity is generated from wind power farms. These electric rate prices might be higher than the lowest electric rate available, however some shoppers are willing to pay the extra charge for the ability to buy green power.

Energy choice in New Jersey has provided customers living in Elizabeth the ability to shop for all of these electricity options and more. The majority of Elizabeth electricity customers have PSEG as their utility company. Even after a competitive energy company is chosen, PSEG will continue to send your monthly electric bill, maintain the lines and wires, and charge you the distribution expenses found on your bill under the “Delivery” section. The delivery prices remain regulated by the New Jersey Board of Public Utilities and are the same no matter which electric company is chosen to provide you with your competitive supply rates.

Here is a list of current competitive electricity prices for Elizabeth customers who have PSEG as their utility (updated daily):

PSEG electricity customers can save as much as 17% on their electric supply bills by selecting an alternative electric supplier. Electricity shopping has been picking up steam in recent months as more competitive electricity companies have filed and received electricity supplier licenses from the New Jersey Board of Public Utilities. However, many consumers are still uninformed that New Jersey in now an electric choice market, and even more are uninformed about just how much they can save.

In the past, surveys done in New Jersey regarding market awareness on electric choice has shown that many people just don’t want to go through the “hassle” of shopping for electricity because the end result is only a few dollars a month in savings. However, as competition has heated up and pushed competitive pricing down, the savings are now becoming quite more significant, especially for medium and large houses.  In the past, electricity savings in New Jersey had been  reserved for the largest commercial and industrial customers in the state.  Things have certainly changed as more and more alternative suppliers compete for the 3.3 million New Jersey residential electricity consumers.

PSEG customers using 1,000 KWh would save $20 a month ($240 per year) by choosing the lowest rate available compared to the PSEG default rate.  Homes using 2,000 KWh would save more than twice that ($46.60 a month and $559.20 a year) because PSEG default rates get higher the more power you consume.  A good rule of thumb for figuring out your average monthly KWh is to figure you will use 1 KWh for every square foot of home (1,500 square foot home would use 1,500 KWh average per month).

 
Current Rate Offers From Competitive Suppliers (Updated Daily):

Performing an energy price comparison among different energy companies and their offers is not always as simple as it may seem.  If you are shopping for competitive energy prices you may not always get apples to apples rate comparisons, especially if you are doing electric rate comparisons for a business.

Increasingly competitive energy suppliers are finding creative ways to structure their rate offers which makes customers appear to be signing contracts for unrealistic low rates, when in truth the contract has many additional charges that show up on the electric bill.

In order to protect customers, New Jersey and Pennsylvania post their “Price to Compare” rates which are the default rates offered by the utilities that competitive suppliers are supposed to offer their rates against.  Most people understand that with electric choice, the bill is now divided into two sections:  the competitive supply section, and the regulated delivery section.  The “Price to Compare” rate that utility companies (PP&L, PECO, PSE&G, JCP&L) publish are the entire supply component of the bill.

The supply rate for energy is broken down into more smaller components.  Some of these charges, such as transmission and capacity, will often be displayed on the bill.  Other components, such as line losses and congestion fees, are charges that are not stated on the bill but are blended into the price to compare rate.  However, competitive suppliers will take out these charges and present their rate to a customer that only contains the energy commodity.  The remaining charges will show up when the customer receives the bill.

This practice makes offers seem significantly less than the utility price to compare.  Unfortunately, often when the bill shows up those extra charges push the rate well above the default price to compare.

It is important to understand that in most energy choice markets, business customers can save money on their bills through shopping and comparing offers.  However due diligence needs to be done and the contracts read.  If your staff is unable to do this themselves they should consider working with an energy consulting firm or use a electricity comparison site that presents all offers equally against each other and against the utility’s current price to compare rate.

Here is some information on specific price to compare rates:

PPL:  The price to compare includes the energy rate and transmission rate that are posted on the PPL website.  The rates also include a GRT tax that is 5.9%.  Current PPL commercial rates increased by 33% on June 1.

PECO:  The price to compare includes the energy rate and transmission rate that are posted on the PPL website.  The rates also include a GRT tax that is 6.06%.  PECO commercial rates will increase by 9-11% on July 1.  PECO residential rates will increase by an average of 10% on July 1.

PSEG:  The official term for the price to compare in New Jersey is Basic Generation Service (BGS) rate.  The BGS rate for PSEG businesses is a little complicated because they use different measurements for different charges.  They charge a per KWh rate for energy commodity, and then a dollar per KW demand for transmission and capacity.  This causes the total BGS to change slightly from month to month.  To get an overall idea of what your BGS default rate is, take your total supply charge and divide it by the total KWh amount for that month.  All of this is stated on the bill.  Then you can compare competitive rates against the total BGS rate to see what type of savings are available.  Keep in mind that BGS rate include a 7% NJ tax.

JCPL:  The official term for the price to compare in New Jersey is Basic Generation Service (BGS) rate.  The BGS rate includes energy and transmission charges.

Energy customers in New Jersey are given a variety of  options when in comes to their energy purchasing decisions.  New Jersey is leading the country in clean energy initiatives with the NJ Clean Energy Program which provides rebates and promotions for consumers looking to purchase energy efficient hardware.  The program also promotes the use of renewable energy sources such as solar and wind and provides financial assistance for consumers and businesses who invest in solar energy systems.

NJ Energy customers have also seen the benefits of an energy choice market where customers are able to shop for competitive electricity and natural gas rates.  Many energy consumers in New Jersey have not used NJ Energy Choice to their advantage because of an unfamiliarity to the program.  Natural gas customers who have not shopped pay a default rate with their utility which is based largely on market price.  In this sense the decision to purchase competitive natural gas is a decision of price protection and certainty; savings versus the default rates cannot be guaranteed because they change on a monthly basis.

On the contrary, utility default electric rates are set for one year at a time, and the default rates for the following year can be estimated within a tight range since a large percentage of that energy is purchased in advance for default rate paying customers.  These buying strategies present opportunities for NJ electricity customers to save money on their electric bills if they find competitive electric rates that are lower than the default rates.  Many electric suppliers in New Jersey are offering electricity prices that will save customers money.  Business customers in particular have big opportunities to save money.  Many small businesses in New Jersey have not chosen a competitive electricity supplier because they do not fully understand their electric bill.

New Jersey electricity customers, both residential and business, can use electric choice information sites to understand energy competition and electricity rate structures so that they can maximize their energy savings.

Electricity customers who are serviced by the utility PSEG are finding savings on their electric bills by shopping for lower electric rates.  Electric shopping in New Jersey is picking up as PSEG and JCPL get ready to set their summer rate increases.

Customers who have not shopped and compared electricity prices are paying high default rates.  The default electricity rates in NJ are set for one year at a time starting on June 1 and ending on May 31.  The summer months (June through September) have a different set of energy rates than the non-summer months (October through May).  While electricity savings are currently available for customers who compare energy prices, the savings are expected to be even greater once the summer default rates take effect on June 1.

In addition to lowering your electric bill, many of the competitive energy suppliers offer promotions such as gift cards and cash back bonuses.  Below are electric rate offers that also have promotional offers.

Electricity choice is certainly becoming a reality in New Jersey.  Customers of PSEG, JCPL, and Atlantic City Electric are seeing more and more electricity options.  One year ago their were less than a handful of options for NJ residential electric customers, now there are about a dozen electricity companies offering electric supply service with more filing the paperwork to enter the market.  True electric competition is taking place in New Jersey.

Compare Competitive PSEG Rates (updated daily):