Newark Electricity Rates
Contents
- 1 Newark Electricity Rates
- 2 Newark Utility Companies
- 3 Newark Power Outage
- 4 New Jersey Energy Choice
- 5 PSEG Price to Compare
- 6 Understanding the Electric Bill
- 7 Choose an Electric Supplier
- 8 Select an Energy Plan
- 9 Renewable Energy Plans
- 10 Frequently Asked Questions
- 11 When Will I be Switched?
- 12 Are There Hidden Fees?
- 13 Is There an Early Cancellation Fee?
- 14 What Happens at the End of my Term?
- 15 View by City
- 16 Clean Energy
- 17 Electricity Rates
Residents living in Newark, New Jersey can shop for an alternate energy supplier and lower the electric bill by 10 to 25 percent. New Jersey is one of many states that has deregulated the electricity market allowing energy suppliers to compete with the utility companies for customers. Newark electricity rates have become competitive as more energy suppliers enter the market. Since the market became deregulated, the main responsibility of the utility company now is to manage power lines that deliver electricity to homes and businesses in its service area.
The city of Newark has a population of just over 280,000. It is located just west of Jersey City across Newark Bay. Given its geographical location, the city is subject to cold winters and averages over 25 inches of snow per year.
Newark Utility Companies
PSEG is the main utility company that operates in the city of Newark. The utility company is responsible for managing the lines and wires to safely deliver electricity to customers within its service area. If you’re planning on moving to the city, then you will have to set up an electricity account through PSEG. The delivery charge is regulated by the New Jersey Board of Public Utilities. A customer will not be able to switch to another utility company for the delivery service.
Newark Power Outage
If you experience a power outage then you will need to contact the utility company. PSEG is in charge of making sure the lights stay on. Most power outages are caused by bad weather or damage to the lines from things such as a falling tree branch. If you experience a prolonged outage, then you will need to contact PSEG.
- PSEG Customer Contact Number: 1-800-436-7734
New Jersey Energy Choice
The New Jersey Board of Public Utilities moved forward in deregulating New Jersey’s energy market in the late 1990s. Before there was energy choice, the utility companies had a monopoly in the generation, transmission, and delivery of power within their service areas. If a customer was unhappy with the rate there was nothing they could do to change. Thanks to energy choice, Newark residents now have a variety of energy suppliers to select from.
PSEG Price to Compare
Along with managing the power lines, PSEG is required to provide a default rate for supply services to those that do not switch over to a competing energy supplier. The default rate is known as the PSEG price to compare. This rate is variable and often not competitive. A customer can use the price to compare while shopping for energy plans. If an energy 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.
Understanding the Electric Bill
The electric bill has two main sections that include the delivery and supply charge.
- The Delivery Charge – The delivery charge represents the regulated section of the electric bill and is charged by the utility company. This is the cost of delivering the power to the end-user. This charge is regulated by the New Jersey Board of Public Utilities
- The Supply Charge – The supply charge represents the deregulated section of the electric bill and is the cost of generating power the customer is estimated to use during a period. Thanks to energy choice, a customer can change electric suppliers and lower their supply rate.
Choose an Electric Supplier
If you’re new to energy choice, then shopping for an electric supplier might seem like a hassle. It doesn’t have to be! Switching to the right electric supplier can save you 20% or more on the electric bill. So, taking the time to find the right energy supplier is a small price to pay compared to the savings that will add up.
With so many energy suppliers providing service in Newark, how do you know which one to select? Electric suppliers that provide supply services in New Jersey must be licensed by the New Jersey Board of Public Utilities. Knowing which electric supplier to choose depends on the energy plan that is right for you. Whether you’re looking for the lowest possible rate or you want to lock in a plan that comes from 100% renewable energy, there will be a supplier out there for you.
Select an Energy Plan
Two popular energy plans include variable and fixed rates. Knowing which plan to select has a lot to do with a person’s risk tolerance. Most people are happy locking in a fixed rate and not being hit with any surprises once the electric bill comes due. However, if the market drops and prices go down, then you may be stuck paying a higher rate.
Variable rates fluctuate monthly. It is not uncommon to have a variable rate increase during the term of an agreement. Most variable rates can change at the sole discretion of the energy supplier which will not make the customer happy if the market goes down but their rate goes up. However, most variable rate plans do not have an early cancellation fee. This allows the customer to change electric suppliers or lock in a fixed rate without having to pay a penalty.
Renewable Energy Plans
A greater percentage of Newark electricity rates are being generated from renewable energy sources. This is largely due to the increases in regulations set by New Jersey’s Renewable Portfolio Standard (RPS). The RPS requires a set percentage of electricity sold in the state to be generated from renewable energy sources. This percentage is set to increase in the coming years to 50% by 2030.
The RPS has created an artificial market for renewable energy. Knowing energy suppliers must meet the required percentage set by the RPS, investments are being made to third-party renewable energy farms that produce solar and wind energy. This has led to more energy suppliers offering customers energy plans that are 100% renewable.
Below is a chart that shows the pros and cons of the most popular energy plans:
| 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 electric supplier then expect to be switched on the next available meter read. A meter read cycle is typically every 30 days. This means if you signed up right after your meter read then you won’t be switched over until the following month’s meter read. Expect two to three months before the new rate shows up on the electric bill.
Are There Hidden Fees?
If an electric supplier is offering a supply rate that seems too good to be true then it probably is. These rates may have additional fees such as a monthly base charge that will be added as a separate line item onto the electric bill. All additional charges will be listed in the plan’s terms and conditions.
Is There an Early Cancellation Fee?
Most energy suppliers will charge customers an early cancellation fee if the customer changes electric suppliers before the expiration of the term. Early cancellation fees can cost up to $300 or more! Any early cancellation fee will be listed in the energy plan’s terms and conditions.
What Happens at the End of my Term?
If the energy plan expires and the customer takes no action, then expect to be switched to a monthly variable rate. We strongly recommend avoiding this and begin shopping for a new energy plan a month before the original term expires.
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