Uncover the Truth New Jersey Hides about Your Electric Rates
Power to Choose

Uncover the Truth New Jersey Hides about Your Electric Rates

24 Aug 20225 mins to read


People use the words electric rates comparison when they talk about energy deregulation. Energy deregulation is the process of integrating competition in the wholesale energy market and allowing NJ power suppliers to buy electricity at low prices and tailor individual plans for their consumers. As a result, homeowners and business owners can choose power suppliers or personal energy plans and adjust them according to their needs. Energy deregulation prevents monopoly and improves competition, benefiting the end consumer who receives the best New Jersey electric rates and uses his power of choice.

Do You Know These Facts about Energy Choice in the USA?

  • From the start, the energy industry was fully regulated, and in 1932 around 8 companies owned 73% of electricity in the US.
  • In 1935, Congress passed the PUHCA (Public Utility Holding Company Act) to stop the increased monopoly and initiate regulated protocols in the energy market.
  • When the energy crisis hit in 1970 and the oil embargo in 1973 changed the lives of Americans, the USA built power plants that relied on its natural resources - coal and uranium. The exorbitant prices for their construction were passed to consumers who saw shocking electric prices on their bills. They couldn’t even dream about having an electric choice and switching their electricity supplier.
  • With the implementation of the Energy Policy Act in 1992, the energy wholesale market started to be competitive, and the first deregulation policies would emerge for the public.
  • In 2022, 26 states deregulated their energy or gas market, and thousands of consumers used their energy choice to get lower prices on their monthly bills.

Deregulation was the first form of managing electricity from the time the first power plant was built in America. The lesson is obvious - consumers should have the power to choose their electricity provider.

Does NJ Electric Rates Comparison Work for Everyone?

New Jersey introduced deregulation for its customers in 1999 with the Electric Discount and Energy Competition Act (EDECA) and ended the utility monopoly of the energy sector. Until then, the fluctuation of electricity prices on the market and the constantly increasing costs were placed on people's shoulders. Once the bill was passed and New Jersey made the proper adjustments, consumers had the power to choose their energy supplier and save electricity and money during the process.

It didn't take long for people to notice the advantages of energy deregulation on the state's economy. Energy rates dropped by 10.2% compared to average national rates and generated $290 million in savings. These changes led to the development of the "power to choose" concept - when consumers shop around for the best energy provider and plan, switching to the one that offers more benefits and lower prices.

The Average New Jersey Electric Rates in 2022

According to the U.S. Energy Information Administration, the energy rates in New Jersey in 2022 are the following:

Residential:          17.04 cents/kWh

Commercial:        13.37 cents/kWh

 

The natural energy sources of utility energy generation:

Petroleum-Fired:       0.0%

Natural Gas-Fired:   49.4%

Coal-Fired:                 1.2%

Nuclear:                     43.3%

Renewables:              5.1%

 

The energy sources for home heating:

Natural Gas:       75.3%        

Fuel Oil:                 7.4%                    

Electricity:            13.6%        

Propane:                2.2%        

Other/None:           1.5%

Energy Facts about New Jersey:

  • Although New Jersey is considered one of the most densely populated states in the USA, it holds fourth place in the top lowest energy consumption per person.
  • In 2022, the state allocated over $30 million to fulfill the New Jersey Electric Vehicle Law for the next ten years. The program aims for at least 90% of sold or leased vehicles to be electric by 2040.
  • New Jersey is the seventh solar energy producer in the USA, and its energy can support around 500,000 households annually.
  • The CO2 emissions are one of the lowest in the country, amounting to 0.8% of the total U.S. emissions.

How Does Electricity Come to Your House in New Jersey?

Until you get electricity at home, it follows the following path:

1) Generation - most electricity in the country is generated by coal, natural gas, nuclear energy, coal, and renewable energy. 

2) Transmission - once the electricity is generated, it is transmitted from the power plants through high-voltage lines to the local distribution network.

3) Distribution - at this point, the electricity is distributed through low-voltage lines to your home.

4) Consumption - you use the energy and pay the bill to your utility or chosen New Jersey, power suppliers.

What is the Role of NJ Power Suppliers?

In the past, utilities were publicly owned and were a one-stop shop for everything energy-related, starting with electricity generation, distribution, billing, solving disputes, and much more. Consumers in New Jersey had no choice in switching their energy suppliers. Once deregulation came into the country, the whole system changed.

Today, a supplier buys electricity and gas from generators and sells them to consumers at a better price. Even more, electricity suppliers in New Jersey create competition and can tailor different plans with better electric rates for consumers. This way, your electricity is still transmitted and distributed by the local utility, but the actual supply comes from your chosen energy provider. This is why your energy choice is important in New Jersey.

What Are the Benefits New Jersey Hides About Your Electric Rates?

  • You can save energy. From its start, deregulation saved around $290 million for consumers in New Jersey, and the numbers have constantly increased. While utilities provide nonnegotiable rates, switching power suppliers will allow you to choose a better deal with customized terms, such as price, early cancelation fees, plan length, renewable energy sources, and others, which means you will get the best New Jersey electric rates.
  • You don't experience service interruption. When you switch your New Jersey energy supplier, it will make the necessary changes for you by contacting the local utility to make the switch. This way, you won't undergo any connection problems and can continue using electricity for your home.
  • You can opt for a renewable energy source. Multiple New Jersey electricity suppliers offer plans with rates based on renewable energy resources. By choosing green energy, you can contribute to reducing your carbon footprint and be a part of the USA’s net-zero policy.
  • You get better service. NJ power suppliers will deliver valuable services to their customers to survive the competition. You get fast assistance, lower New Jersey electric rates, and better 24/7 customer support than your utility offers.
  • You have the power to choose. Forget about monopoly prices and unfairness - today, you are the one who decides which electric rates are best for your home and business. You can choose the most suitable power suppliers on the market and make the New Jersey power of choice work for you!

What Types of Plans Can You Get in New Jersey?

  • Fixed-rate plans. The plan will have a fixed price that won't change during the contract's time. If an energy crisis strikes the country and prices skyrocket, your home will be secure with fixed electric rates.
  • Variable plans. These contracts are flexible because the energy rates will follow the price changes in the wholesale energy market. On the one hand, if prices rise, your bill is higher. But on the other hand, in New Jersey, you will get lower electric bills and electric rates when prices go down.
  • No-deposit and prepaid energy plans. Usually, electricity suppliers will check your credit score and ask for a deposit before starting a plan. With no-deposit contracts, you avoid credit checks and can even choose the prepaid option. You deposit money into your personal account, and the supplier uses it monthly to pay your bill.
  • Green energy plan. As discussed above, several New Jersey electricity providers will have renewable electric plans. It’s important to make a green choice and reduce your carbon footprint.
  • Business plans. In today's energy crises, securing just your home in New Jersey with tailored electric rates is not enough. That's why NJ power suppliers have reliable business energy plans, and you get to save money and electricity on your company's bills.

How to Switch Your NJ Power Suppliers?

Switching your energy supplier is a piece of cake. The process is even faster and straightforward with Energy5.

  1. Access Energy5 and compare suppliers and prices in your area.
  2. Review the plan details and select the one that suits you best.
  3. Upload recent bills to show your supplier your average monthly electricity usage.
  4. Request a customized price and electric rates for your house/ business.
  5. Recheck the contracts' clauses, make a choice, and confirm the switch.
  6. Your new NJ electric supplier will contact your local utility and make all the necessary changes.
  7. You are all set for now!

Why Is Your Energy Choice Important?

After so many unexpected global events, such as Covid, the energy crisis, and constantly rising inflation, it's time to secure your home and business in New Jersey and get fixed energy rates. Although you may feel unaffected today, things are progressing quickly.

Forget about the anxiety you constantly get before opening your monthly energy bill. Forget about rising wholesale energy prices and overcharges. Today you can actually make the energy choice work for you and take matters into your hands. That's why Energy5 can select the best NJ power suppliers, tailor an electric rates comparison, and develop solutions to survive the rising prices.

The Energy5 tool can be a turning point for making crucial energy and gas savings decisions for your home and your business. You are the one who can take the necessary steps to reduce your carbon footprint. Choose New Jersey electricity suppliers that can present a plan with fixed energy rates to overcome the energy crisis and save money on your electric bill.


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