PSE&G – New Jersey: Know your Utility

Published: October 2, 2017

Public Service Electric & Gas Company, or PSE&G, is the most prominent utility company in the state of New Jersey. PSE&G was first formed in 1903. It grew over the years as it acquired over 400 different gas, electric and transportation companies in New Jersey. Its service territory spreads over the majority of New Jersey, predominately North and West New Jersey. The utility owns the energy grid, lines and meters to your location. However, customers of PSE&G have the choice of purchasing the actual power and energy consumed (supply) from a third party supplier, or ESCO (Energy Services Company).

  • What is the difference between a utility and a supplier?
    • The utility delivers it through the wires to your facility. An ESCO supplies the energy your business consumes.
  • Does it cost money to switch your business to another supplier?
    • There is no cost associated with the switch. Provide basic information including two recent bill copies and a signed LOA (a permission slip for us to look at your business’ energy usage). Then we can get started on your free energy analysis.
  • How many suppliers are in the market?
    • There are A LOT of suppliers in the market. Some serve all rate classes of customers, some specialize in small/medium and others only large customer classes. Diversegy only works with reputable commercial energy supply companies and will match you with suppliers that serve your rate class.
  • How do I find the best rate for me?
    • Step 1: Find a list of all licensed third party suppliers in PSE&G that serve your rate class. Step 2: reach out to every one of them. Step 3: request pricing. And finally, step 4: compare all rates and choose which one that works best. But you would be missing a few key pieces. Are they including GRT/SUT? Did they price the same day? Did you know that energy prices could change daily? What does their contract say? Are they reputable? Is the price for consolidated billing or dual billing? OR Contact us for a free complimentary analysis today and we can do all that for you, without having to be on your payroll.
  • What is BGS?
    • BGS stands for Basic Generation Service. It refers to an auction system that allows competing electricity producers to bid on the state’s power contracts. The market cost of electricity is reflected in the BGS price, as well as a couple of other unstated costs. Those choosing a third party supplier avoid this cost.
  • What is GRT/SUT?
    • GRT stands for Gross Receipts Tax. It is included with the energy rate to compute the total charge. In New Jersey it is 2.75% of the gross receipts of the first sale of energy. For more information on GRT’s in New Jersey, click here.
    • SUT stands for Sales and Use Tax. Some suppliers include it in their rate and some do not. It can cause around a 10% swing in price.
  • Do all suppliers include GRT/SUT?
    • No, not all suppliers in PSE&G present customers a price including GRT/SUT. It’s important to know which do and which do not to have a true apples-to-apples comparison. Diversegy always provides a true comparison inclusive of all costs when applicable to their customers.
  • When does PSE&G change their rates?
    • PSE&G changes their commercial electricity rates seasonally, particularly summer (June – September) and winter (all other months)
    • PSE&G changes their commercial natural gas rates monthly
  • Are there any taxes included in the supplier cost of energy?
    • Yes and no, for PSE&G, some suppliers include the cost, some do not . These tariffs vary for electricity and natural gas. For more information on the tariffs for PSE&G per commodity, please reference the tariffs section on the PSE&G website.
  • Do commercial energy taxes fluctuate?
    • Yes, federal, state and local government taxes contribute to the cost of energy for your business. For more information, click here.
  • Historical information on pricing?
  • Does PSE&G have any efficiency rebates or programs?
    • Yes! PSE&G has a commercial Efficiency Program that provides rebates and incentives. Their programs include: Commercial System Relief Program, Renewable Energy program, and a NY PACE Financing Option for all commercial customers. Diversegy can perform a free analysis to see how your business could benefit from these incentives.
  • Who should I call about outages and repairs to my business?
    • You should still call PSE&G. In case of a power outage, please call 1-800 436-PSEG (7734). For more information on who to contact, click here.
  • Will I be double charged by both the utility and the supplier?
    • No, you will not be double charged. If you started off with the utility’s rates, your bill already has a supply and a distribution charge. Now that you are working with a third-party supplier, they will be the “supply” charge. The “distribution” portion of your bill will be from PSE&G for the lines and poles to deliver your power. Nothing else will change. For more information about supply and delivery charges, click here. To understand more on how to accurately read your bill to determine these and other charges, click here.
  • What is the benefit of working with a company like Diversegy?
    • We help businesses in the commercial, industrial, and municipality sectors reduce costs, mitigate risk, and improve their bottom line by incorporating an energy strategy into their business. While other brokers may do the same, with our state-of-the-art technology and techniques, we can get you what you need faster than ever before. Additionally, we offer a full suite of products and services to serve most of your commercial energy needs, including solar.
  • Why shouldn’t I stay with PSE&G for energy supply?
    • You could stay with PSE&G, but having a third party supplier often helps reduce energy costs and offers price stability. The service to your business will still be provided by PSE&G, but the rate on your bill will be from a third party supplier. Please click on the free analysis button below to receive your complimentary commercial energy analysis to see if having a third party supplier is what’s best for you.

 

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