The estimated PSEG electricity price to compare rate for residential customers in 2011 is $0.1228 cents per KWh. The rate may vary slightly for different size customers as the PSEG rate includes several components. However, it is save to assume that any PSEG customer who has not taken advantage of electric choice can benefit by finding a lower electric rate versus the high PSEG price to compare rate, known as basic generation service.
Basic generation service is the default electric rate that PSEG charges their customers who have not shopped for competitive electricity. The interesting thing is that PSEG does not profit off of the default rates; they are simply passing through those charges from electricity companies who competed in an auction to charge the portfolio of PSEG default customers.
Switching off of PSEG default rates onto a lower electric rate does not mean that you will be leaving PSE&G. If you are a PSE&G customer, you remain a PSE&G customer no matter which electric supplier you choose through electric choice. The New Jersey Electricity Competition Act transformed PSE&G into a regulated power delivery company. PSE&G is responsible for the management and maintenance of the power lines and the management of invoicing electricity customers (mailing the electric bill).
Most competitive electricity companies offer consolidated billing so that you still only receive one electric bill per month from PSE&G. The PSE&G bill would contain their regulated delivery charges, followed by the competitive supply rate.