Under New Jersey’s energy deregulation law, the supply portion of your electric or natural gas bill is separate from the delivery portion. With the supply portion open to competition, customers can shop around for the best price on their energy supplies. Their electric and natural gas distribution utilities will still deliver those supplies through their wires and pipes – and respond to emergencies, should they arise – regardless of where those supplies are purchased. Purchasing your energy supplies from a company other than your electric or gas utility is purely an economic decision; it has no impact on the reliability or safety of your service.
To learn more about Third Party Suppliers and how to shop for energy, the Board of Public Utilities has created an entire website with helpful information, explanations and tips, NJ Powerswitch.
Click on your current energy provider to find out which alternative electric suppliers serve your area.
Atlantic City Electric
Orangel Rockland Electric
New Jersey Natural Gas
South Jersey Gas
Any electric or gas customer in New Jersey is eligible to shop, but those with higher usage may have an even greater incentive to do so. Commercial and industrial customers with peak loads of 750 kilowatts or more are subject to a retail margin of one-half cent per kilowatthour if they continue to buy their electric supplies from their utility. Those customers with peak loads of 1,000 kilowatts or above are also subject to hourly pricing (i.e. their supply costs change hour-by-hour to reflect the actual cost of generating electricity in that particular time period).
Listed at the bottom of the page are third-party electric suppliers licensed by the Board of Public Utilities to sell within the service areas of each of the state’s four electric distribution utilities, and a similar list of natural gas suppliers. You may also wish to visit the websites of your electric or gas distribution company for specific information on buying third-party supplies within their service areas.
Call several suppliers on the list so you can compare their offers. You should have your company’s recent billing history available when you call, so the suppliers know how much energy you use and what your usage patterns are.
One of the first things to ask about is the pricing options the supplier offers. Generally, these options fall into three categories: Fixed, floating and hybrid.
Fixed: Under this option, a customer pays a set, agreed-upon price for energy supplies throughout the term of the contract. Fixed price contracts can help customers save money if energy costs rise in the future. Conversely, customers may end up paying more under a fixed price option if energy costs decline.
Floating: Also known as variable pricing, this option allows the customer’s price to rise or fall on a monthly basis as it tracks the wholesale cost of electricity or natural gas. Generally, the customer’s price is a percentage of the wholesale cost, regardless of the direction in which the wholesale price moves.
Hybrid: This option is a combination of the fixed and floating options. In some cases, the customer pays a fixed price for part of the contract period, and a floating price for the remainder of the time. In other cases, a fixed price will apply to some percentage of the customer’s supplies and a floating price will apply to the rest.
Regardless of the option you choose, it is also important to ask the following questions: