Jersey City Electricity Rates
Contents
- 1 Jersey City Electricity Rates
- 2 Jersey City Utility Companies
- 3 Jersey City Power Outage
- 4 New Jersey Energy Choice
- 5 Understanding the Electric Bill
- 6 Jersey City Price to Compare
- 7 Shopping for an Electric Supplier
- 8 Choosing an Energy Plan
- 9 Frequently Asked Questions
- 10 When Will I be Switched?
- 11 Are There Hidden Fees?
- 12 Is There an Early Cancellation Fee?
- 13 What Happens at the End of my Term?
- 14 View by City
- 15 Clean Energy
- 16 Electricity Rates
Jersey City is just one of many cities in New Jersey that is located in a deregulated electricity market allowing residents to choose their electric supplier and lower the supply rate on the electric bill. Jersey City electricity rates have become more competitive thanks to the New Jersey Board of Public Utilities taking steps to restructure the energy market in the early 1990s. New Jersey energy deregulation has opened up the energy market to outside energy suppliers who now have to compete for customers. Shopping and switching electric suppliers can save residents between 10 to 25 percent off the electric bill.
Jersey City has a population of just over 260,000 and is located west of New York City, across the Hudson River, and south of Hoboken, New Jersey. The city is the second most populous in the state just behind Newark. Given the geographical location, the city is subject to cold winters with an annual snowfall of just over 25 inches.
Jersey City Utility Companies
PSEG is the main utility company that operates in Jersey City. The main responsibility of the utility company is to maintain and manage the power lines that deliver electricity to customers within its service area. If you’re planning on moving to the city, then you will need to set up an electricity account through PSEG. Delivering power to customers represents the regulated section of the electric bill so a customer will not be able to switch to another utility company for this service.
Jersey City Power Outage
If you recently changed electric suppliers and the lights go out, then you will need to contact the utility company. PSEG is responsible for resolving all power outages within its service area. Weather and interference in the power lines, such as a tree branch falling, are the major culprits of most power outages. However, for any reason you experience a power outage, then contact PSEG.
- PSEG Customer Contact Number: 1-800-436-7734
New Jersey Energy Choice
The New Jersey energy market became restructured in the late 1990s with the help of the New Jersey Board of Public Utilities. The responsibilities of the utility companies became unbundled, and outside energy suppliers were now allowed to provide supply services to residents in the state. Before energy choice, the utility companies had a monopoly over the generation, transmission, and delivery of power within their service areas. The main responsibility of the utility company now is to deliver power and maintain the power lines.
Understanding the Electric Bill
The electric bill has two main charges which include the delivery and supply:
- Delivery Charge – The delivery charge represents the regulated section of the electric bill and is the cost of delivering power to customers. This charge is regulated by the New Jersey Board of Public utilities. Customers will not be able to switch utility companies for the delivery charge.
- Supply Charge – The supply charge represents the deregulated section of the electric bill. This is the cost of generating the power the customer is estimated to use during a period. Energy choice gives power to the customer to switch electric suppliers and lower the supply rate on the electric bill.
Jersey City Price to Compare
Along with delivering power to customers in Jersey City, PSEG is required to be the supplier of last resort for those that do not switch electric suppliers. The supply rate PSEG charges to customers are known as the PSEG price to compare. This is the rate customers can use to determine savings while shopping for a new energy supplier. The price to compare is a variable rate and often not competitive. If an electric supplier is offering a supply rate lower than the price to compare, then the customer will be saving money by switching to the new energy supplier.
Shopping for an Electric Supplier
With so many electric suppliers providing quality service in New Jersey how do you know which one is best for you? Electric suppliers that provide services in the state must be licensed by the New Jersey Board of Public Utilities. The website will contain a list of licensed energy suppliers that are qualified to supply services in the state. However, knowing which energy supplier is right for you will depend on the energy plan the supplier is offering.
Choosing an Energy Plan
The two most common energy plans include variable and fixed rates. Knowing which of these two products is right for you will depend on your risk tolerance. If you’re more conservative then you may consider locking in a fixed rate. Fixed rates will protect the customer during a rising market. However, if the energy market drops, then the customer may end up paying a higher rate.
Variable rates do exactly what they say and tend to fluctuate monthly. If you’re willing to take more risk then you may consider going with a variable rate. However, most variable rate plans can change at the sole discretion of the energy supplier. It is not uncommon for a variable rate plan to increase during the term of the agreement. Most variable-rate plans allow the customer to change energy plans without having to pay an early cancellation fee.
Renewable energy is also growing in popularity. More energy suppliers are offering customers 100% renewable energy options. This means 100% of the energy generated through these plans comes from renewable energy sources such as wind and solar. Renewable energy sources are considered to be cleaner than conventional sources such as oil and coal. However, if you select a renewable energy plan then expect to pay a premium on the rate.
Below are the pros and cons of the more popular energy plans among customers:
| Electric Rate Products | Pros | Cons |
|---|---|---|
Fixed Rate |
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Variable Rate |
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Index Rate |
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Renewable Energy Rates |
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Frequently Asked Questions
When Will I be Switched?
When you sign up with a new energy plan then expect to be switched over on the next available meter read. A meter read cycle is typically every 30 days. This means if you signed up right after the meter read, then you won’t be switched over until the following month. Expect to wait two months before the new rate shows up on the electric bill.
Are There Hidden Fees?
If you’re not paying attention, then you may be in for a surprise when the electric bill shows up in the mail. It is a common occurrence for customers to sign up with the lowest rate advertised without reading the terms and conditions in the agreement. Energy plans may contain additional charges such as a monthly meter fee charge or additional fees if you’re not using above or below a set consumption amount. All additional fees will be listed in the terms and conditions.
Is There an Early Cancellation Fee?
Most energy suppliers will charge their customers an early cancellation fee if they change electric suppliers before the expiration of the term. Early cancellation fees can cost up to $300! The terms and conditions will contain any early cancellation fees.
What Happens at the End of my Term?
If you take no action on the expiration of the agreement then expect to be switched to a monthly variable rate. Once this happens don’t be surprised to have the electric bill double or even triple in a single billing period. We recommend shopping for a new energy plan a month before the original agreement expires.
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