electric competition

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):



Residential electricity customers in Philadelphia and surrounding areas in southeast Pennsylvania are finding good savings on their PECO energy bills through electric competition.  Customers in the area seeking to compare electricity prices will find savings versus the PECO price to compare rates of 2011.

Below are two electricity companies offering electricity rates that are lower than the current residential PECO default rate.  While the savings are relevant, they do not even take into account that PECO rates are estimated to increase by another 10-15% this summer according to www.peco.com.  Locking in a fixed rate will protect customers from these increases.

The default prices for PECO electricity will change every three months and are based on a series of auctions.  Some competitive electricity companies are able to offer savings compared to the PECO rates partly because PECO has to include a premium in their pricing when they buy the energy on the wholesale market to offset the uncertainty of how many customers they will have.  Competitive electricity companies do not have to include this premium in their pricing since they are able to purchase power on the wholesale market for the retail customer one at a time.

Compare PECO Rates:



Seven years after New Jersey officially deregulated their electricity market, residences of the state are finally seeing competitive electric rates that can save them real dollars off of their monthly electric bill.

If you are a customer of PSE&G, JCP&L, Rockland Electric, or Atlantic City Electric, savings can be found by shopping the competitive electricity market for lower prices.  Alternative electric suppliers had been slow to enter the New Jersey market for a variety of reasons.  However, a significant drop in wholesale electric prices combined with high utility default rates, have given electricity companies a great reason to get licensed by the state and market their services and rates to New Jersey customers.

Residential customers can choose between a variable electric rate that can fluctuate month to month but gives the customer the option to leave the service at any time, or a fixed electric rate that locks in your rate for a specific period of time, usually anywhere from 4-24 months.

Here are the residential electricity rates available in New Jersey at this time:
PSEG Rates

JCPL Rates

Atlantic City Electric Rates

Some of the companies are running introductory offers with cashback bonuses.

For a low variable rate with a $50 Cashback Bonus introductory offer, click here.
Low fixed rate offers with a Visa Prepaid card up to $75 can be found here

In most cases, including the offers above, even after you switch electric suppliers you will still get your monthly electric bill from your utility company.  The utility companies (PSEG, JCPL, Rockland, Atlantic City Electric) are still regulated lines and wires company and are responsible for billing residential electric customers.  They only provide a default electric rate to residential customers because they are required to do so by the state under the terms of the New Jersey Competition and Electric Choice Bill.