Lower PSEG Bill

PSEG electricity customers are finally able to save money on their electricity bills by choosing a lower rate than the default PSEG rates.

In recent years, electricity suppliers had been slow to enter New Jersey electricity market.  Now that the electricity companies are able to offer electric rates that are lower than the  utility basic generation service rates, companies have entered the market and are offering their service to PSEG customers.

To see if money will be saved, customers should look at the “Supply” section on their PSEG bill.  There they will find the electric rates that can be compared to alternative electricity company offers.  Electric savings are currently being offered by as much as 12.4%, but not all offers result in saving, so it is important for customers to compare rates.  Some PSEG bill payers are even choosing to pay more on their electricity bill for the right to buy 100% wind power or other forms of green energy.

Customers who shop for lower power rates might also find promotions that can further sweeten the deal on top of electric bill savings.  PSEG customers will still receive their electric bill from PSEG even after they switch electric suppliers.

The best offers, (lowest rates plus promotions) for fixed and variable electric rates, that we have found are below:


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Business Electric Contracts

As electricity deregulation markets have matured around the country over the last several years, electric suppliers have gotten tricky on how they present their offers on contracts.  In short, the energy supply charge should include several components including the energy commodity, capacity, line losses, ancillary charges, and sometimes transmission charges depending on your specific market.   Many suppliers will show a rate that just includes the energy commodity charge, and then pass on the extra charges through another category on the bill.

Why do they do this?

Simply put, they do this to make their rate look lower than their competitors.  For example, one supplier might give a rate that includes everything for 7.5 cents.  Another supplier might give a rate that just includes energy commodity for 6 cents.  At first the 6 cent offer appears to be great.  However, when you get the bill you will see a line for the 6 cent charge followed by an additional section that has another 3 cents for all of the addition charges.  So in the end, that 6 cents is really 9 cents.

How do they get away with this?

It is all in the electricity contract!

It is extremely important to take the time to review all electricity contract offers to ensure that you are getting a true apples to apples comparison.

One of the reasons ElectricityWatch.org was set up was because I went through such a deceitful practice.  I signed an electricity contract for a fixed rate of 7 cents when in reality I ended up paying 8-9 cents per month.  During this time I could have paid a fixed rate of 6.65 cents.

Though everything is in the contract, many electricity companies have gotten very smart as to how they word their electric contracts so that the consumer overlooks important factors relating to the rate.  If you would like us to review your business electric contract, feel free to post a comment with the request and we will contact you to do so.

Keep in mind this is for business electricity customers.  Residential customers are protected by their state utility commissions from such practices.  Businesses, however, are expected to do their own due diligence.

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PECO Electric

PECO electric customers are now able to shop  for better rates from alternative electricity companies, but are the prices better?

Some offers in the PECO territory are coming below the PECO default rate, known as the price to compare.  The PECO price to compare is the rate that PECO charges their customers who do not shop the competitive market for alternative electric options.  The price to compare rates are determined by a series of auctions that PECO facilitated in 2010.

The price to compare rates will change every quarter as PECO scheduled additional auctions in 2011 for a percentage of the default service users.  Due to this fact, it is important for PECO energy customers to think not just about what their current default electric rate is, but what it will be, especially in the summer when electricity use is at its peak.

Some customers in the PECO area are locking in long term fixed rates to protect themselves from potential future increases.

In addition to savings, customers can find promotion offers like the $50 gift card above from some electric suppliers, here are some popular choices with great rates.


Other companies are offering variable electric rates that are showing initial savings off of the PECO price to compare rate.  Though it is important for consumers to watch those variable rates closely as they can go up at any time.

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Low CT Electric Rates

Connecticut Light and Power (CL&P) residential customers are finding lower electric rates in the Connecticut competitive electricity market.  Many CL&P residential customers have still not switched electricity suppliers because they are unaware of the savings and benefits of shopping for low electric rates.

Many electricity customers who have not switched are not well informed on the details of the Connecticut Electricity Restructuring Act.  The act allows for CL&P and United Illuminating (UI) to continue to control the delivery of the power and the billing.  These utility companies only offer supply electricity rates as a default service.  Connecticut customers who do switch electric companies continue to receive their monthly electric bill from CL&P, or UI, but instead of paying the higher default supply electric rate, they pay the new lower rate that they signed for with the alternative electricity company.

Visit our Electricity Prices page for current electric rates in Connecticut.

Both offers can be chosen online.  The fixed electric rate will require a commitment of 6 months.  The variable rate has no commitment, however the rate can go up at anytime.  We recommend the fixed rate offer at this time.

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