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.

What is an “aggregator”?
An aggregator is a company or association that buys power at a wholesale price from power generating companies and passes the savings on to its customers. Because the aggregator is buying vary large amounts of power on behalf of all its customers, they can negotiate for the best rates on your behalf.

Does taking advantage of the deregulated electricity market require changes in wiring to my business?
None whatsoever. Your new agreement to buy electricity through an aggregator simply requires your local utility (the company that delivers power to your meter) to utilize electricity generated by the companies that sell power wholesale to the aggregator.

Can I take advantage of the deregulated electricity market in my home?
Not at this moment, in most cases. Aggregators need to acquire the bargaining power of larger electricity users to be able to negotiate favorably for their clients. At some time in the future, aggregators may turn to groups of homeowners.

Is there any service interuption when I change my electricity provider?
The change from buying power from your current provider to your new provider is “seamless”, in most cases simply requiring a reading of the meter at the time your new service takes effect. There is usually no need to replace the meter or otherwise interupt your power service. Your aggregator will take care of all the paperwork, contacting the various utility companies, etc.

Who do I call if the power is out?
Your local utility is responsible for delivering electricity to your business. In case of a storm-related or other outage, call your local utility just like you do now.

Will my local utility put me “at the back of the line” if I report an outage?
No, this is illegal. More importantly, in practical terms, most outages are not to just one address, but to an entire area or zone of their service grid. These repairs restore everybody’s service regardless of where they buy their electricity from.

How does the billing for my electric service work? How do I pay my bill?
You’ll still get just one bill. Whereas you currently typically receive just one bill to cover the generation, transmission, and delivery of power from one company, you now will receive one bill that shows the cost of all of these elements. In order to keep administration costs as low as possible and deliver power at the lowest cost to all customers, most aggregators require automated monthly payment of your bill, in the same safe and reliable manner as you may currently schedule your bank or credit card to automatically pay other regular bills for your business or home.

Who do I contact for questions about my bill?
For questions regarding your bill for electricity contact your aggregator. For questions regarding the delivery of your service such as outages, meter checks, etc., contact your local utility, which is responsible for delivering power (from whatever source) to your business.

Who is responsible for the safety and reliability of my service?
The delivery system is still the responsibility of your local utility and as such, its safety and reliability. The utility will maintain the lines and repair them if there is an outage or storm. The regulatory body overseeing utilities in
your state will help to ensure that the utility continues to provide a safe, reliable delivery system for your use.

Can I buy power from one specific power generating company?
Since saving money is most people’s primary reason for buying electricity through an aggregator, your energy may come from any number of different electricity generating companies at any given time, depending on price. Other options are usually available to purchase electricity solely from a “green” generator, such as solar and wind farms.

Do I have to make a long-term committment to a different electricity provider?
Avoid making long-term commitments with an aggregator or broker, at least initially. A safer option is to choose an aggregator who offers a no-commitment service so you can be satisfied that you are receiving the expected savings and service. If, for whatever reason, you are unsatisfied, you’ll have the option of returning to your previous electric supplier.

What reasons are there to stay with my current electricity company?
If you are a stockholder receiving dividends from your current provider (although the potential savings may cover much more than your current dividends), or if you are not concerned with the amount of money you spend for electricity.

How do I find a reliable aggregator to help cut my electricity bills?
Email George@hbsadvantage.com to learn more of how yo can save in the deregulated Market

Visit or webite to learn more www.hutchinsonbusinesssolutions.com

The Deregulated Electricity Market will SAVE your company money…but only if YOU act.

Just as deregulating the airline industry resulted in more competition and lower airfares, and the deregulation of the telephone industry resulted in slashing service costs, the deregulation of the nation’s electric utilities will result in utility companies competing for your business with better service and lower prices. While it’s not yet truly practical for the average household to utilize this deregulated environment, the “mid-size” to “large” electricity consumers (small to large businesses) are now able to drastically cut their electricity costs through “aggregators” (companies that buy large volumes of electricity at wholesale rates on behalf of their clients).

A Brief History of
Utility Deregulation

Before deregulation, you were ‘held hostage’ by one telephone company monopoly. You had to pay the rates that they decided were ‘fair’ (though they had to receive approval from the government). The phone company owned the wires, switches, even your actual phone which you had to rent from the phone company (you were not allowed to own a phone of your choice and connect it to “their” system.

Then the phone company monopoly was broken up by the U.S. Justice Department and the FTC, and allowed the entry of competition. The competition began with long distance phone calls, and companies like MCI and Sprint set up their own switching systems and wires and leased the use of the old phone company’s lines (this latter part was mandated by government decree to insure competition). Long distance rates started dropping, first by a little, then drastically. Today a long-distance call can cost as little as a penny (sometimes even less), whereas that same phone call 30 years ago would have cost 20 or 30 cents (or more) per minute. The End Result? Consumers of telephone service now have multiple choices for service providers, and the cost of telephone services (especially long distance, but also local service) have dropped dramatically, saving consumers tens of millions of dollars.

THE SAME SITUATION IS OCCURING TODAY WITH
ANOTHER UTILITY: THE ELECTRIC COMPANY.

In the interest of providing the public with the lowest possible rates and a selection of service options, the U.S. electric utility industry is now in the process of being deregulated. This allows power plants to compete for your business, and as we all know, competition breeds savings for consumers. It also changes the electrical utility industry into two distinct types of services: The companies that transmit power from the electrical generating station to your home or business (they own the poles, transformers, wires, etc…these are called “the distributors”); and the companies who actually operate power plants (“the generators”) and feed electricity into the distributors’ power grids. Of course, some companies are both generators and distributors. Still, deregulation allows you to choose who actually generates the power you consume, and you are free to choose the company that generates electricity in the most cost-effective manner and therefore can sell it to you at the best price.

In 1978, Congress passed the Public Utility Regulatory Policies Act which laid the groundwork for deregulation and competition by opening wholesale power markets to nonutility producers of electricity. Congress voted to promote greater competition in the bulk power market with the passage of the Energy Policy Act of 1992. The Federal Energy Regulatory Commission (FERC) implemented the intent of the Act in 1996 with Orders 888 and 889, with the stated objective to “remove impediments to competition in wholesale trade and to bring more efficient, lower cost power to the Nation’s electricity customers.” The FERC orders required open and equal access to jurisdictional utilities’ transmission lines for all electricity producers, thus facilitating the States’ restructuring of the electric power industry to allow customers direct access to retail power generation.

As a result of the Federal and State initiatives, the electric power industry is transitioning from highly regulated, local monopolies which provided their customers with a total package of all electric services and moving towards competitive companies that provide the electricity while utilities continue to provide transmission or distribution services. States are moving away from regulations that set rates for electricity and toward oversight of an increasingly deregulated industry in which prices are determined by competitive markets. (source: United States Department of Energy)

So how do you get electricity from “Power Company A” when your existing power company is “Power Company Z”?  Envision this example: Suppose your town is served by “Power Company Z”…this is the company that owns and maintains all the wires in your town, and they also happen to have a power generating station as well. This power company also is connected via larger regional or national power grids to 3 other power generating companies (let’s call them “Generator A, B, and C”). 25% of the power users in your town buy their power from Generator A, 25% from Generator B, 25% from Generator C, and the remaining 25% continue to buy from the distributing company “Power Company Z”. If you are one of the 25% that decides to buy your power from “Generator A”, then your distributor “Power Company Z” is required to buy 25% of their overall power from Generator A, 25% from Generator B, and 25% from Generator C. That means that the actual “juice” delivered to your business at any given moment could actually be a combination of electricity from up to 4 different providers, but the end result is the same…YOU, the CONSUMER, dictates which power company provides your share of the total power distributed and used, and you pay for your energy at Power Company A’s rates.

Of course it’s entirely possible that a power distributor has no actual power generating facility, OR that everybody in their service area chooses to buy their power from a source OTHER than the distributing company. The distributing company can not be expected to maintain the poles, towers, lines, transformers, etc. for nothing. Under the new deregulated industry, you will in effect receive two bills: One to pay for the actual amount of electricity used, and another for the delivery of the energy to your business. In actuality, your monthly power bill is consolidated into one payment, but it’s easy to see how much you are paying for electricity and how much for delivery.

In the end the competition between power generating companies will lower your bill by 15 to 20%, based on the experience of electricity users in states where deregulation has already been in place for several years. In the near future this competition will also allow you to make significant social and environmental choices. You may choose, for example, to obtain your electricity from a generating company that produces electricity at a slightly lower level of savings, but uses a cleaner fuel source than another generating company. You might even choose to take a firm environmental stand of receiving very little in savings but purchasing your electricity only from a very “green” power source, such as a producer who uses hydro, solar or wind turbines to generate electricity.

In the past, you could only buy electricity from your local utility, at the rates they set. Today, you have the freedom to buy from a variety of utilities that compete on price and quality for your business.

I have been getting a lot of feedback recently from many clients. They are all saying the same thing, “ What’s going on with the energy market, seems like everyone is starting to sell energy.”

That’s a good point! Energy prices are the most competitive they have been in the last 4 to 5 years and many people are trying to jump on the bandwagon.

Hutchinson Business Solutions (HBS) has been selling both gas and electric for the last 10 years. We represent all the major providers licensed to sell energy in New Jersey and that puts us in a unique position. We do not just represent 1 company. We are an independent energy broker, able to shop both your natural gas and electric accounts to all the providers, finding you the best opportunity for savings.

You will be surprised by some of the disparity of prices we find between the various providers, although they all seem to offer a savings over the current price to compare from your local provider. What needs to be understood is that each provider may have what is known as a sweet spot ie. those markets where they are more competitive.

Electric Opportunity

 We recently presented a proposal to a client where the price to compare from PSEG was  $.1162 cents per kwh. One of our providers submitted a proposal of $.109 cents per kwh, while another one came in at $.103 cents per kwh. By shopping the account we were able to provide more value with greater savings.

 Another thing that you must be aware of, while looking at your electric price in the deregulated market, be certain that the price is fully loaded and includes all the tarrifs and Sales Tax. I have seen where a client has been given a proposal with these items left out. What might look like a better deal can in fact be deceptive for the actual price will include a 7% loss allowance and also 7% sales tax. The loss allowance and the sales tax is already included in your price to compare from the local provider. To make the proposal apples to apples this must be included.

 Should you like to know more about your opportunity for savings in the deregulated electric market email george@hbsadvantage.com  We offer a free analysis of your cost and will present a proposal of the opportunities based on your current demand and annual usage.

 Natural Gas Opportunity

 There are also opportunities available in the natural gas market. If you are currently receiving natural gas from your local provider; remember that they are purchasing natural gas wholesale and selling it to you retail. Each month the price of natural gas changes from the provider based on current market conditions. Should you have floated your account in the deregulated market over the past year buying your natural gas thru HBS, you would have saved from 10% to 20% depending on who your local provider is.

 We also offer the option to lock your price on natural gas from 1 year up to 2 years or more. Some companies prefer this option for it offers certainty as to what they will be paying over the life of the contract and protects their account from market price fluctuations.

 Should you like to know more about your opportunity for savings in the deregulated natural gas market email george@hbsadvantage.com  We offer a free analysis of your cost and will present a proposal of the opportunities based on your current demand and annual usage.

 Hutchinson Business Solutions does not charge any additional fees for our services. As stated, we are an independent energy broker and receive a small residual from our providers during the life of the contract. Therefore, all the savings fall to the bottom line.

 There are minimum usages that may qualify your account to be able to participate in the deregulated market. Normally, if you are spending on average of $2000 a month on natural gas or a minimum of $5000 a month on electric, you should be looking at the opportunities for savings in the deregulated market.

Years ago, AT&T ruled the U.S. telecommunications industry. However, once deregulation was introduced, it opened the field to competition and allowed customers to shop for alternative carriers.

The same rings true for the energy marketplace, which saw deregulation gain momentum in the late 1990’s, giving customers a choice of energy suppliers, products and prices in their utility jurisdictions. There are approximately 20 states today with deregulated natural gas and approximately 15 with deregulated electricity.

Natural gas market

In the past 20 years, the majority of new electric generating plants have been designed to run on natural gas. When the pipelines were deregulated and the fuel was labeled “clean”, federal, state and local governments pushed for natural gas’s usage and consumers responded by using more gas every year since.

Natural gas has a relatively non-polluting production cycle and poses very little risk when it’s transported in pipelines. There also aren’t the emissions you have with shipping fuel by trucks and ships.

Yor current local utility provider buys natural gas in the wholesale market and then sells it to their customers at retail prices. We put our clients in a wholesale position. 

Expanding electricity

Unlike the natural gas market, it’s trickier to deregulate the electricity industry. Whereas the former has a direct line from well to pipeline to user, electricity comes from multiple sources, including nuclear, coal, oil, natural gas and renewable energies.

Deregulation of electricity allows for competion for the purchase of your electric supply in the local market and this means savings for you. 

Your natural gas and electric is still delivered by your local provider. Should there and be any service issues or disruption, your local provider is still responsible for servicing the account.

Hutchinson Business Solutions is an independent broker reresenting all the major deregulated providers selling natural gas and electric in the tri state area for the last 10 years.

We offer a free analysis of your current annual natural gas and electric supply cost. Our clients are finding savings from 11% upto 48%.

For more information and to order your free energy analysis email george@hbsadvantage.com

On August 1 1999, New Jersey implemented electric deregulation in its state, opening its borders to competition and lower electricity prices. Electricity can be provided more cheaply in New Jersey where there is a number of competitive suppliers in the marketplace. Electric consumers need not change their electric supplier (it is the same electricity) and they only need to choose their electric provider. These electric providers buy electricity in bulk at competitive prices and redistribute savings to their customers.

Deregulated Electric and Gas

Natural Gas and Electric competition has substantially benefited industrial electric and gas consumers in the states of New Jersey, New York, Pennsylvania and Delaware.

Hutchinson Business Solutions (HBS) is an independent broker representing all the major deregulated providers in this area. We will provide a free cost analysis of your commercial / industrial annual electricity and natural gas supply expense. 

Your local providers purchase natural gas and electric in the wholesale market and then sells it to their customers at retail prices. HBS puts our clients in a wholesale position and the savings will fall to your bottom line.

To obtain your free analysis on your commercial, industrial or business electricity email your contact information to george@hbsadvantage.com.

In these hard economic times, Why Pay More!

Contact us today. HBS provides corporate utility financial solutions