Aug. 3, 2020
New Jersey is the 11th largest state in the United States, with a population of 8.8 million. More than 90% of the state’s electricity generation is from natural gas and nuclear power. However, many energy companies are focusing on renewable energy, mainly on solar power. All New Jersey residents can choose from several energy suppliers by comparing New Jersey electricity rates and opting for the best electricity plans in their service area. Here’s how New Jersey’s electricity market works, and how to save on energy and get the best New Jersey electricity rates.
New Jersey natural gas companies, such as PSE&G, South Jersey Gas, New Jersey Natural Gas, and Elizabethtown Gas, provide most of the natural gas needed for electricity generation. Meanwhile, other energy suppliers make sure of nuclear power and renewable energy.
For all New Jersey residents, your electricity bill is divided into two main categories – supply and delivery services.
The supplier is the energy company that generates electricity. Their electricity rates depend on the cost of producing power. Since the state of New Jersey has multiple local utility companies, each of them has different energy suppliers in its service area. The total energy costs of suppliers will include the price per kilowatt-hour (kWh), cancelation fees, and early termination fees, among other charges.
The delivery services are handled by your local utility company. The energy delivery company delivers your electricity, maintains power lines, and manages power outages. The delivery charges include the cost of delivering electricity and maintaining the transmission network. There are additional charges for customer account services and other charges allowed by the Board of Public Utilities (BPU).
The four main utility companies operating in different parts of New Jersey, include JCP&L (Jersey Central Power & Light), Atlantic City Electric, Rockland Electric, and PSE&G. Your local utility company continues to deliver electricity regardless of your third-party suppliers.
You can learn more about New Jersey electricity rates and tariffs here.
The Electric Discount and Energy Competition Act of 1999 started the energy deregulation process for New Jersey customers, including both commercial and residential customers. As a result, all New Jersey residents can buy commercial and residential electricity plans from various energy providers.
While companies providing electric utilities remain the same, customers have the energy choice to choose suppliers. Residents can also opt for green energy plans if they want their electricity supply from renewable sources. Overall, New Jersey electric rates are below the national average.
If you don’t choose an energy provider, your local utility company will offer you the default rate – basic generation service (BGS). BSG rates are also your Price to Compare; you can use it to compare the energy rates and plans offered by other suppliers. The process will help you find the best New Jersey electric rates in your service area.
All New Jersey residents can choose from several electricity supply companies in the energy market. You have to make sure your new plan has a rate that’s lower than your Price to Compare.
You can compare each company’s plans and rates to get the plan that offers the most savings. You can search and try to shop for rates yourself, but watch out for the fine print, hidden fees, and escalating rates once your term ends.
Alternatively, you can use Arbor’s free TrueRate Protection service to automatically find and switch to the best New Jersey electricity rates in your area.
Arbor scans the market and gives you the best rates you can get in your service area. When your contract term is expiring, Arbor finds the best rate and switches you again. You always pay the best rate and never have to worry about overpaying for electricity ever again.
You can also use the free savings calculator to find out how much you could save in each case.
All energy supply companies offer various plans with different rates, term lengths, and benefits. Energy deregulation has made it easy to change your energy supplier, and doing so doesn’t halt your energy delivery.
Get a copy of your electric bill and check who supplies your electricity and at what rate. You can use Arbor to find the best rate in your area and switch to the lowest cost supplier quickly to save time.
You can use Arbor to find the best rate in your area by using our free savings calculator.
Furthermore, customers can choose from different types of plans. These are the six plan options you’ll find in New Jersey.
Fixed-Rate Plans: Opting for fixed-rate plans means you will pay the same energy costs, regardless of how the energy market rates fluctuate. We recommend fixed-rate plans because they provide price certainty and minimize risk. But be careful: when your term expires, your rate becomes variable and can go up without notice. Arbor automatically keeps you on the best fixed-rate plan, so you don’t have to worry about rate hikes at the end of your term.
Variable-Rate Plans: Variable-rate plans, otherwise known as floating plans, let you pay according to the monthly rate depending on wholesale electricity prices.
Hybrid Plans: Such plans combine the features of fixed and variable-rate plans.
Green/Renewable Energy Plans: New Jersey residents can choose green energy plans if they want renewable energy supply.
Home Services: You can get home services, such as HVAC installation, roof repairs, and smart thermostat installation, among other services.
Renewable Energy Credits (RECs): Residents can buy RECs from electricity providers – RECs help support sustainable energy sources.
Some plans may ask you for a deposit. However, plans available through Arbor never require a deposit.
Depending on where you live in New Jersey, your utility company will be different. More importantly, you can choose what energy company supplies your electricity. You can use the Price to Compare or the rate you’re currently getting to check what energy plan works best for you.
After checking what plan provides the best New Jersey electricity rates, you can make your decision.
You should also check out how you can save on your energy bill with your local utility company. But electricity is complicated, which is why people trust Arbor to manage their electricity service for them, so they always pay the best electricity rate available in New Jersey.
Take 30 seconds and save up to $250 per year. Calculate your savings now with our free calculator.