PSEG BGS Summer Rates Posted

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.