Energy Deregulation In New Jersey

The history of electricity deregulation in New Jersey

In 1997, history was about to be made in New Jersey. The New Jersey Board of Public Utilities shared the idea of having an Energy Master Plan. This energy plan consisted of one very important aspect – by the year 2001, all residents of New Jersey could choose their own electricity provider. This change also applied to businesses in the state.

New Jersey’s electricity needs were taken care of by the four utilities – Atlantic City Electric (ACE), Jersey Central Power and Light (JCPL), Public Service Electric and Gas (PSEG), and Orange & Rockland. While these utilities are still active and functional, consumers now have the freedom to choose any electricity supplier they want. 

As far as natural gas is concerned, this market too was deregulated in 1997, along with the electricity market.

One of the best byproducts of the energy deregulation law in New Jersey has been the increased competition and choice of different energy suppliers. This competition has also given rise to green energy companies. Consumers are becoming more aware of energy efficiency these days, and energy deregulation lets them make an informed and carefully measured decision.

Different Deregulated Energy Plans in New Jersey –

  • Fixed-rate plans

This plan allows customers to set a particular price for 1kWh. It is based on a contractual basis, and it secures the customer from the highs and lows of the market. This plan is stable and is perfect for those who like knowing how much they have to spend on electricity every month.

  • Variable-rate plans (AKA floating plans)

This plan is the exact opposite of the fixed-rate plan as it follows the spot market value of electricity or natural gas. This is why it is often referred to as a floating plan because of the floating value of energy. With this plan, you can be assured that you are always paying for the market value of energy, no more and no less.

  • Hybrid plans

This plan is a little complex compared to the fixed-rate and variable-rate plans. A hybrid plan falls right in the middle – they fluctuate, but the rate of fluctuation is not as random, it follows a mathematical formula and is tied to a commodity index.

  • Green or Renewable energy plans

These plans can be residential or commercial, and they help reduce the carbon footprint of the family home or the company. These plans are ideal for consumers who care about the planet and want to take more steps to minimize their impact on the environment.

  • Residential Services

These plans are designed specifically for homes. If you are a homeowner and are looking for a plan for your family, then you must check out the residential plans different suppliers have to offer.

  • Renewable Energy Credits (RECs)

The Solar Renewable Energy Credit gives businesses and homes an SREC for every thousand kilowatt-hours of electricity they produce. These credits can be given to state utilities to get a certain amount of electricity each year.

Advantages of having deregulated energy –

  • More renewable energy options

More environmentally conscious people can now choose and support greener energy initiatives and reduce their impact on Earth. This upcoming field of alternative renewable energy is here to stay!

  • Can easily switch from one energy provider to another

When you get in touch with an energy procurement service like Navigate Power, switching energy suppliers is as simple as ever! All you need to do is browse through the different energy suppliers in your city, select a plan that best works for you and voila! You have successfully changed your energy supplier! You will not face any interruption in your electricity services throughout this switching process as well.

  • Great customer care services

Since the energy markets in New Jersey have been deregulated, many different energy companies and suppliers have been established and are competing to get more customers. This competition results in a higher quality of services, which also includes improved customer service.

  • Long term energy and money savings

The ability to choose your own energy supplier helps you save money and energy in the long run. Everyone has different energy needs, and one standard regulated energy plan does not cater to the needs of all. Based on these parameters, individuals and businesses choose a plan that best suits needs and is affordable as well.

  • Greater variety of choice

New Jersey has many different energy suppliers playing the field now, and all these companies offer different types of plans, including fixed-rate plans, floating plans, renewable energy plans, hybrid plans, and so on.

Electricity and Natural Gas providers in New Jersey –

To get a list of the energy companies that Navigate Power works with in New Jersey, contact us at [email protected].