Energy customers in Jersey City are quickly learning that they can obtain lower electricity rates with competitive energy suppliers. Due to the New Jersey Electricity Choice and Competition Act, Jersey City electric customers can shop and compare competitive electric rates to their local utility’s default rate. The competition act has turned the Jersey City utility, PSE&G, into a regulated electric distribution company; their revenue streams are derived from the delivery of power and the maintenance of the power lines and wires.
The PSE&G electric rates for the generation and supply service are default rates that are passed through PSE&G to their customers. This means that PSE&G does not profit off of their customers for the supply of their electricity; the part of the bill that is open to electric choice. Many PSE&G customers are surprised to learn that PSE&G wants their customers to find a lower electric rate by shopping the competitive electricity market.
Even after PSE&G customers choose an alternative electric company with a lower rate, they continue to receive their monthly electric bill from PSE&G. The electric bill looks the same, the only difference is that the default rate is replaced by the competitive rate chosen by the customer. Over a dozen electric suppliers are currently offering competitive electric prices to Jersey City consumers.
Fixed electric rates that are lower than current PSE&G default rates result in guaranteed savings for Jersey City customers. PSE&G electric default rates are determined by a series of auctions. The rates are set for one year starting on June 1 and ending May 31 of the following calendar year.
Here are the lowest competitive electric prices in Jersey City: