The results from New Jersey’s annual electricity auction are in, and while three out of four utilities’ electric supply rates will go down this year, PSE&G rates are scheduled to remain flat. The New Jersey Board of Public Utilities (BPU) approved the rate changes in early February. Starting in June, Atlantic City Electric’s residential rates will decrease by 5.35%, JCP&L’s by 3%, and Rockland’s by 5.5%.
PSE&G is the state’s largest utility, with 70% of the state’s population residing in the utility’s territory. While the other utilities’ rates will decrease, residents under the PSE&G utility giant will see no relief this year due to costs from future major upgrades in infrastructure. Currently, the utility’s average residential rate (the Price-to-Compare) is at 11.16 cents per kilowatt hour.
The electricity purchased in the auction will provide one-third of the state’s residential and small business electric supply for three years, and the remaining demand for supply will be supplemented with past years auctions’ electric supply.
While rates have steadily been decreasing in the state for four years, New Jersey residents already pay some of the highest electricity rates in the country. Average residential electricity rates in 2012 were 15.82 cents per kilowatt hour, compared to a national average of 11.91 cents. The only states with higher rates are Hawaii, Alaska, New York, Connecticut, New Hampshire and Vermont.
Less than 10% of PSE&G customers have switched to a retail electricity provider for the supply portions of their electricity bills. As more customers make the switch, competition among providers increases, resulting in lower rates from many electric providers in the state. If PSE&G is your utility, now is the time to shop around since you know for sure that their rates won’t be dropping anytime soon. Use our Compare & Switch tool (at the top of this page) to view reputable providers in your area. It’s easy to use, and best of all, it’s free.