PSEG Rates for 2010

May 24, 2010

As reported by Electricwatch.org

PSEG Electric Rates for 2010March 7, 2010

Basic Generations Service (BGS) rates for PSEG electric customers have been established for the new year.  BGS rates are the default rate for customers serviced by the utility PSEG who have not shopped for a competitive electricity supplier.  The new rates will go into effect on June 1.

PSEG default rates for the supply portion of the bill are divided into a summer term that begins June 1 and extends through the end of September, and the non summer term that begins October 1 and extends through the end of May 2011.  The default BGS rates include the entire Supply section on customer PSEG bills.  This is often an area of confusion to business customers who look into the benefits of competitive rate shopping.  The total price to compare takes into account the generation rate as well as capacity charges.  When customers just compare the per KWh rate on their current bill they are not getting an apples-to-apples comparison. 

In order to realize the actual price to compare, PSEG business customers should take their total supply charge and divide it by the total amount of KWh they consumed for the bill period.  This will result in a KWh rate that can be compared to offers from competitive suppliers.  This price to compare will include state taxes of 7%.  So if the competive rate does not include taxes (as will be stated on the contract) multiply the rate by 1.07 to get the true comparison rate.

The bottom line is that there are competitive electricity suppliers available for business customers serviced by PSEG.  Depending on the size of the customer and the type of electricity product chosen (fixed, variable, green energy, long term), savings can be as much as 25%.

Our Perspective:

Are you currently participating in the NJ Deregulated electric market? Current market rates are presenting great opportunity for savings.

Hutchinson Business Solutions is an independent energy management company. We have been providing savings for our clients in the deregulated natural gas and electric market since for over 10 years.

Our clients are finding savings from 10% to 25%. Should you like to know more email george@hbsadvantage.com . Local providers buy natural gas and electric on the open market at wholesale prices and then bill their clients retail.

We put our clients in a wholesale position! Many companies are finding deregulated utilities to be a great area for savings and increased cash flow.

2 Responses to “PSEG Rates for 2010”

  1. ZIA KHAN said

    If we install a 250 kW solar farm and feed the generted power into the PSG&E grid, what rate $/kWh PSG&E will pay?

    • ghutch said

      If you have a farm and are producing more than you use then you will be selling back to PJM @ the open market rate. This will be lower than what PSEG would pay yo. If you are producing only the amount you are uusing, then you get a full credit back from PSEG. If you are paying $.16 cents per kwh, they will credit yo back the full amount.

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