JCPL

Residential customers who receive their monthly electric bill from JCPL can find savings above 10% by taking the time to shop and compare electricity rates in the competitive NJ energy market. The New Jersey Electric Choice and Competition act is providing power options for both residential and commercial customers. There are variety of options in the New Jersey competitive market. Customers can choose to lock in a fixed rate for savings and price certainty, or they can choose a variable rate with the option to switch suppliers at any time. Green power options are also being offered because of the NJ Electric Choice act.

Having the power to shop power companies is still a new idea to most electricity customers in New Jersey. Less than 8% of JCPL residential customers have switched electric suppliers despite competitive rates that are more than 10% lower than JCPL residential default rates. New Jersey is hoping that their electricity market matures like the Texas market did over the last decade. In Texas, Houston energy customers can choose between over twenty electric companies and over 50 electric rate offers.

The default rates offered by JCPL are generation supply rates that JCPL charges to customers who have not participated in energy choice. These rates are determined by a series of auctions that begin three years prior to the current current year. In other words, default rates being offered in 2011 are determined by auctions that occurred in 2008, 2009, and 2010. Switching electric companies does not end the customer relationship with JCPL. JCPL remains the electricity delivery company for all of their customers regardless of which competitive electricity generation supply company is chosen.


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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.

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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):


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New Jersey power consumers are finding savings through the state’s electricity choice program.  Electric choice in New Jersey has brought in more than a dozen electric suppliers offering electricity rates to commercial and industrial customers over the last several years.  Now electricity suppliers are starting to offer residential rates in New Jersey.

NJ power shoppers who take the time to compare electricity offers are finding the best deals.  In addition to low electric rates that offer significant savings versus utility default rates, some electric suppliers are offering incentives and promotions to entice customers to switch.  Despite electric bill savings of over 20% in some cases, less than 8% of New Jersey residential electric customers have switched suppliers.

Those who have not switched continue to pay a high default rate with their local electric utility company – PSEG, JCPL, ACE, Rockland.  PSEG and JCPL have been pushing power shopping and choice to their customers to help spread the word.  Though New Jerseyans now have a choice of who supplies their electricity, the power continues to be delivered by the local utility companies.  PSEG, JCPL, Atlantic City Electric, and Rockland Electric do not lose the customer when they switch electric suppliers.  Instead, the utility company continues to bill the customer and charge regulated rates for power delivery.  The only thing that changes is that instead of paying the high default supply rate, the customer pays a competitive supply rate.  If that competitive rate is lower than the default rate, than the customer saves money on their electric bill.

Here are some current low power rates in New Jersey:
PSEG Rates



JCPL Rates



Atlantic City Electric Rates


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Rockland Electric

February 14, 2011

Rockland Electric delivers electricity to just under 63,000 residences in northern New Jersey.  Though electricity choice has existed in New Jersey for several years, competitive electricity companies have just recently started offering competitive electricity rates in the Rockland Electric area. Though, as of December 2010, only 1.8 percent of the residential customers have chosen an […]

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JCPL NJ

January 9, 2011

Residential electricity customers of the New Jersey utility company Jersey Central Power & Light (JCP&L) are receiving competitive offers for the first time. Though JCP&L has had a deregulated retail energy market for several years, electricity companies were slow to enter the market due to low JCP&L electric default rates.  JCPL sets their default rates […]

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NJ Electricity Prices and Savings

December 19, 2010

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 […]

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NJ Electric Prices

November 23, 2010

New Jersey electric customers have more rate options than ever before.  The four local utilities – PSE&G, JCP&L, Atlantic City Electric, Rockland Electric – all have default electric rates that are higher than competitive market rates for power. Despite this opportunity for savings, only 3.3% (as of September 2010) of all New Jersey customers have […]

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Find Lower JCPL Electric Rates

August 13, 2010

Jersey Central Power and Light (JCPL) electricity customers are seeing some of the lowest electric rates since the utility deregulated back in 2003. The basic generation service, the JCPL default rate, will be $0.110285 per kilowatt hour from October 1, 2010 through May 31, 2011 for small and medium businesses.  From now through the end […]

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How do I Lower My Electric Bill

August 9, 2010

States that have decided to deregulate, or restructure, their electricity utilities are giving their consumers the opportunity to lower their electric bills.  Misunderstanding how to lower the electric bill has been a problem for some of these electric rate payers. As a simple review, the electric bill is divided into two main sections; the delivery […]

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