New Jersey set to see lower electricity rates

After decades of paying some of the highest electricity rates in the country, residents of New Jersey will be happy to hear that prices are set to come down across the state later this summer, according to The Star-Ledger.

These lower electricity rates are the result of a recent energy auction in the state, which utilities use to set prices over a three-year period.

"Our analysis of this is basically that we are benefiting from the drop in natural gas prices and that is a very welcome trend for New Jersey ratepayers," said Robert Hanna, president of the Board of Public Utilities.

Reuters reports that the largest savings the state could amount to nearly $7 less on electricity bills. However, the most expensive utility company in the state, Rockland Electric saw only a $1.37 drop in average monthly bills.

Hanna notes that while this auction was able to reduce electricity rates, in general the utilities are designed not to be particularly responsive to changing prices. At a time of high energy prices that could prove helpful, but with natural gas prices at their lowest level in years, alternative electricity providers could potentially provide even more savings than the utility companies.