If You're Using PSE and G Then You're Paying Too Much for Electricity

New Jersey residents who are still using PSE&G as their electricity provider are likely paying more than they need to for their energy bills. This utility company recently had to refund money to a number of customers because it was found that they were overcharging people for electricity. In spite of this problem, they have received approval to actually raise their electricity rates. Living in an era of electricity deregulation means that you have the option of choosing an electricity company that can offer you a competitive price. That’s definitely something to think about if you’re currently still using PSE&G!

The Board of Public Utilities in New Jersey recently approved a rate increase for PSE&G. The total rate of the increase is over $70 million. This translates to approximately a $12 total increase in the average customer’s annual NJ electric bill. Although this isn’t a significantly large amount of money for individual families, it is important to note that the utility company is raising its rates during a time when competition in the industry should be leading to decreases instead of increases in charges. Deregulation of electricity means that there are multiple companies offering electricity. Consumers seeking to get the best prices should be deterred by a company that is raising its rates in the face of competition.

Moreover, the company’s practices should make customers wary. The rate increase that was allowed is actually being limited because of another order by the Board of Public Utilities. The board found that the company has been overcharging its customers for a long time and must pay back the customers over the next two years. They owe over $120 million to customers who were overcharged. The immediate ramification of this is that the $12 annual bill increase will be offset by the refund and will actually only look like about $1 annual increase during the next two years. However, customers should consider the fact that this is due only to PSE&Gs previous practice of overcharging. What’s going to happen when the two years is up and the new rate fully sets in?

Electricity customers in New Jersey have a choice when it comes to their service providers. Smart customers want to get high-quality service at a low cost. It’s worth it to take the time to review the options. Although PSE&G may be the biggest utility company in the state, it’s not the only option. You may find it’s not even the best one for you.