NJ Energy Deregulation

[this_is_nascar 162]

I've not yet researched this on the Net as of yet. I wanted to get some feedback from you folks first. Are you aware of something along the lines of deregulation of the energy companies in NJ? I continue to get calls from people talking about (specific to PSEG), where they claim if I "sign-up" with them, still get my electric from PSEG, still get service/support from PSEG, but my monthly cost is lowered.

 

It's one of those "if it's to good to be true" stories as far as I concerned. I was wondering if others heard about this and took advantage of the "program". I've been taught that you never get something for nothing, so I'm curious as to what gets taken away if someone goes with this option.

[BlueLineFish 615]

My parents did it. Turned out to be a waste of time. No real savings and pse&g service calls take longer

[A-Tech 8]

I've heard of those being scams. I guess there might be a couple legitimate ways, but a lot of people were taken advantage of with this over the summer I think.

[Pizza Bob 1,488]

They aren't scams, but there is no guarantee that they'll lower your costs either. They are, in essence, brokers trading futures. They buy a block of energy from a company like PSE&G or JCP&L (a pox on their house) with the hope that energy costs will go up and then they sell the block of energy that they own for somewhere between what they paid and the current price. The original provider is still responsible for the line maintenance etc. All the new "power" company is doing is acting as a broker. So for all of you out there that thought that you actually had a choice and that you could divest yourselves of the likes of a JCP&L - you're fooling yourselves. The money is still going into their pocket, you are just paying a middleman - who may or may not be able to save you money.

 

Adios,

 

Pizza Bob

[CMJeepster 2,778]

My cousin tried to get me in on one of these things recently. My research led me to pass as it was explained to me that its similar to a pyramid scheme.

[this_is_nascar 162]

Thanks everyone. I'm glad that I asked here and even more pleased that I've never entertained their offer.

[reloaderguy 30]

There was a guy in Shoprite in Carteret giving you a 3 cent per kil hour lower rate for a couple months. Then it went up to a penny below what PSE&G charges. No real savings ai 1 cent per kil hour!

[bry@n 195]

Supposedly my town just negotiated with Con Ed for the entire towns electric. Supposed to be a 15% discount. Guess we'll see.

[TK421 2]

Sounds like Enron to me.

[Red Solo Cup 11]

I tried this to get airline miles. (Delta, but United is partners with the same energy company).

The first month was indeed 10% lower than JCP&L.

The second month was 50% HIGHER than JCP&L.

I called and bitched and they put me on a "commercial plan" (yeah, whatever you want to call it) that with tax equals 9.9 c/kwh.

The regular JCP&L rate is about 10.5 cents an hour.

And i get some airlines points for my usage.

I would recommend switching at a low usage time of year so if you get bait and switched the pain isn't too bad.

I probably ended up about even considering the lump of bonus miles i got versus the month I grossly overpaid.

They also offer the same kind of deal for natural gas.

So you can do it but timing is important as well as meticulous attention to detail.

[Barms 98]

search around.. there was a larger thread discussion on this a couple of months ago..

[2 trip_nick 0]

I've been using Viridian as a provider since the spring. I've saved money every month, electric and gas. It's a legitimate business model. Save money by spot buying, something pse&g can't do. There's a risk that you can be caught short in any given month but you can opt out any time. Your savings will depend largely on the provider you pick. Choose wisely.

[raz-0 1,259]

Can't remember who mine is. Have had it for two plus years. It's pretty much low risk as by law, you can change providers at any time with no penalty. It just takes one full billing cycle. You don't need to involve the company you are leaving either.

 

First year savings was about $0.05 per kwh. Second year it was about $0.07. This year, jcp&l rolled back some of their insane hikes on the supply side and rolled them into an increase on the delivery, so savings for winter is going to be about $0.02.

 

It adds up. The biggest benefit is that the magically low estimated reading the month before jcp&l goes to summer rates doesn't mean anything any more. That right there is usually enough to put about $80-$100 back in my pocket.

 

I got several fliers in the mail and looked into them. I went with the one with the most info available.

 

The energy isn't bought from jcp&l. It's bought at the time they sell off access to generated supplies. FYI the 2015 sales just got round one done a few months ago. Bad news is that obamas coal penalties kick in and there won't be much cheaper generation to water down the increase, so not sure what good it will do past 2014. These brokers sell cheaply based on swapping cheap generation for more expensive, or trading over buys.

 

Don't buy from the squeegee people dumped in your neighborhood by the vanload. Don't try to get frequent flier miles. Don't sign up with your buddy, unless your buddy deals in multi million dollar buys and sells of generation supply on a regular basis.

[Red Solo Cup 11]

I think this site might be useful: http://www.njelectricity.org/

 

Gateway seems to be the cheapest and I've seen $75 gift card signup offers printed at shop rite.

[this_is_nascar 162]

Thanks again everyone.

[mipafox 438]

Where I live in Lehigh Valley we had energy deregulation around 10 years ago much like in NJ.

 

Every heard of PPL? (Pennsylvania Power and Light) They don't make electricity. They buy it, distribute it, and charge for it. If I switch power supply companies my service and my bills don't change, I just pay different rates for the actual electricity.

 

I don't know if it works that way in NJ or not, and it might vary from company to company.

[Qel Hoth 33]

Where I live in Lehigh Valley we had energy deregulation around 10 years ago much like in NJ.

 

Every heard of PPL? (Pennsylvania Power and Light) They don't make electricity. They buy it, distribute it, and charge for it. If I switch power supply companies my service and my bills don't change, I just pay different rates for the actual electricity.

 

I don't know if it works that way in NJ or not, and it might vary from company to company.

 

PPL doesn't make power? Then what is their facility at martins creek? Or their nuke plant just outside of berwick? Or any of the other 20 odd ppl generation plants?

[mipafox 438]

PPL doesn't make power? Then what is their facility at martins creek? Or their nuke plant just outside of berwick? Or any of the other 20 odd ppl generation plants?

 

Shows what I know. Interesting, thanks. I get mailings from them and they have radio commercials all day long saying they don't make power and encouraging people to buy power from other electric companies. I wonder how they justify those statements.

 

One thing is for sure. They don't want you to buy electricity from them.

 

Great. Now I feel like a chump and have to figure out what is going on. Thanks

 

(No, really, thanks)

[mipafox 438]

OK, I got it. PPL Electric Utilities is who I pay for electric service. They are a special purpose entity owned by whomever the PPL parent company is. They own and maintain the power transmission and distribution grid and don't make electricity. Although I can't say for sure (especially after this debacle), I'm going to hazard a guess that anybody that gets an electric bill from PPL probably doesn't get it from a company that makes electricity.