Abby Gruen/The Star-Ledger  posted Jun 07,2010

New Jersey’s largest utility, PSE&G, was granted a 1.9 percent electric rate increase today, confirming a settlement reached May 27 of their year-long bid to raise money from ratepayers for capital improvements.

The Newark-based utilities’ request to also increase gas rates was deferred by the commissioners of the Board of Public Utilities because there was not unanimous agreement on a settlement of that case.

The $73.5 million in additional electric revenue awarded by the BPU today is a fraction of the $147 million requested. The average residential electric customer will see their monthly bills increase by $12.40 per year, or 0.89 percent.

PSE&G had originally asked the board to approve $230 million in additional revenue, which would have resulted in a return on common equity of 11.25 percent. Today they were granted a 10.3 percent return on equity.

“Given current capital market conditions, we felt this was a reasonable return,” said Mark Beyer, chief economist for the BPU, at the public hearing in Newark today.

PSE&G’s request to increase gas bills by 1 percent, or $14.32 per year for the average residential gas customer,was agreed to in a settlement reached last week by the utility and the BPU, the Public Advocate and the Large Energy Users’ Coalition; but Morris Energy Group, which represents wholesale gas customers, opposed the settlement.

The matter will likely be taken up at the next BPU board meeting on June 18th, said Lee Solomon, president of the board.

The president and COO of PSE&G, Ralph LaRossa said in a press release: “We need to strike a balance between the need for additional revenue and today’s tough economic realities, We will take whatever steps are necessary to operate our business within the parameters of this decision.”

The BPU also approved a settlement on an eight-year-old case by the Division of Rate Counsel, that will make PSE&G repay ratepayers for fees it overcollected since it was deregulated in 1999. Average electric customers will get back roughly $11 on their monthly bills per year for the next two years.

The BPU dismissed a 2007 petition claiming overcollection of charges related to deregulation, called stranded costs, filed by Richard G. Murphy II, and supported by the Chemistry Council of New Jersey and other ratepayer groups.

“The utility is being reimbursed for something that didn’t occur, and the BPU did not address that today,” said Daniel Sponseller, an attorney representing Murphy. Murphy and his supporters intend to ask the BPU to reconsider their decision.

A claim made in the rate case by the Large Energy User’s Coalition that PSEG Power has received preferential treatment from PSE&G by avoiding payment of fees other power providers pay, including societal benefits charges, was not addressed by the board today.

“We stand by our call for a freeze on rates until the issue of whether Public Service is paying its fair share of societal benefits charges is resolved,” said Ev Liebman, director of program advocacy for New Jersey Citizen Action. “Based on information that came out of this rate case, there are indications that we should be getting even more back for ratepayers.”

PSEG Summer Rates

July 14, 2010

As reported by ElectricityWatch.org

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:

They bring up a great point, know what you are paying with PSEG and if you are shopping your account, ask if the price is fully loaded.

The price presented from any deregulated provider must include the base price, plus 7% loss allowance(to deliver 100kw of electric, you must send 107kw, for there is a 7% loss in the transmission), plus 7% sales tax. This is an apples to apples comparison.

To learn more email george@hbsadvantage.com

PSEG Price to Compare

June 24, 2010

As reported by electricitywatch.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:

We found this to be a very informative article. When we are speaking to a prospective client, we alway go into great details discussing the importance of comparing a price to compare.

Things to know

7% Loss factor – In order to deliver 100,000 kwh of electric to a destination a supplier must ship 107,000 kwh. This 7% allowance must be factored into a deregulated electric price received from a provider. This loss factor is already in PSEG price to compare.

Sales Tax – PSEG also has 7% sales tax figured into their price to compare.

We find that many times potential clients are mislead. They are quoted the price for the supply only and told the actual price to compare. As usual, the savings are too good to be true.

Actually, the savings can be very good but you have to define what is the actual price they are offering. Is it fully loaded. Does it inclde the 7% loss allowance plus the 7% sales tax.

To learn more email george@hbsadvantage.com or call 856-857-1230

Deregulation FAQ.

May 24, 2010

As reported in NJ Electricity Review

New Jersey Electricity Review

Your Current Electric Provider
Since New Jersey restructured its electricity market, the incumbent providers (PSEG, JCPL, Atlantic City Electric (Conectiv), Rockland Electric) are now solely in the business of managing the lines and wires portion of your electricity service. They are not in the business of offering competitive supply prices. However, they have been given the responsibility to provide high default rates for those business consumers who have not chosen a competitive supplier.
 
Why should I get off of the Default Rate?

There is a misconception in New Jersey that your current provider will be upset if you choose another company to supply your energy. This could not be more untrue. The incumbent providers (PSEG, JCPL, ACE, Rockland) are regulated lines and wires companies whose revenues and profit margins are managed by the state. They do not receive profits for the supply portion of the bill and would rather see all of their customers receive supply service from alternative providers so that they can focus on the reliability and customer service of the power lines.

However, because deregulation is a fairly new concept, the New Jersey State Public Commission Board has mandated that the incumbent providers provide a default service for those customers who are slow to choose a competitive supplier. Due to recent market conditions, the fixed rates that are available in the competitive market are significantly lower than the high default rates, by as much as 15-30% .

 
What Does Deregulation Mean to Me?The deregulated energy market in New Jersey provides the opportunity for all businesses to experience huge savings in their energy spending. The hurdle is knowing when and how to see these savings. Fixed generation rates, bandwidth limitations, ancillary charges, congestion fees, and blend-and-extend price adjustment clauses are just a few elements worth understanding to realize your potential savings.
 
How Can I Save Money?In order to see the maximum savings it is essential to work with a firm who represents you, not the provider, and who are experts in all deregulated energy markets, electricity contract negotiations, and the natural gas market..

By representing your company or organization we will force several providers to compete for your business resulting in lower rates and more favorable contract concessions. We will provide you with a full savings analysis that will compare your current default rate versus the low fixed rates we are able to find. Once the contract is executed we will continue to monitor the market on your behalf and look for opportunities to renegotiate and lower the rate even further.

 

Should you like to know more about opportunities to save in the NJ deregulated natural gas and electric market email george@hbsadvantage.com

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.