Although New Jersey's "Electric Discount and Energy Competition Act" took effect in 1999, the law was mostly ineffective until recently. As competitors entered in the electricity supply market over the past two years, savvy consumers have signed up to save money on their electric bills.
Electric suppliers like Viridian, Constellation Energy and North American Power have begun competing for consumers in New Jersey over the past eighteen months. But many consumer have been loathe to switch, not because they love their utility, but rather for concern about how switching may affect their service.
New Jersey's Clean Power Choice Program highlights the benefits of comparing energy suppliers. In most cases, "new" energy suppliers' pricing structure beat the current incumbent utility in your area.
Consumers should know that the transmission of electricity to your home will still be handled by your incumbent utility in New Jersey (PSE&G, JCP&L, Atlantic Electric, Rockland Electric), and that consumers will not be discriminated against due to their choice of energy suppliers.
Saving money on electricity may be critical for residents who heat their homes with electric heat pumps, and most consumers will see the benefit of deregulated prices during the summer months, when cooling costs are higher. In order to take advantage of these savings, consumers should shop around now, so that the transfer will be fully operational by the warmer spring and summer months.
Viridian has also launched its natural gas service into New Jersey. Consumers who use natural gas for heating, cooking and/or clothes drying can take advantage of lower costs provided by a competitive marketplace. Once again, the incumbent ultility will still provide transmission of natural gas to the home or business, but the new "supplier" can provide a lower cost and more environmentally sensitive source of energy.
Utilities are currently under mandates to provide more environmentally sensitive alternatives to traditional power sources such as coal and oil. The new energy suppliers are providing these alternatives through their use of solar and wind-generated power in their energy supply. For consumers wanting a 100 percent renewable sources of energy, both Viridian and North American Power can supply 100 percent clean energy, which comes at a higher rate than their "traditional" service.
In any event, it pays consumers to shop around, and energy deregulation is taking place in New Jersey, New York, Pennsylvania, Illinois, Maryland, Ohio, Massachusetts as well, so consumers should check in their state for possible alternatives.
