The PSEG electricity bill is divided into a delivery section and a supply section. The delivery charges are the rates that PSEG charges their customers to deliver the electricity from the generation facilities, to transmission stations, through distribution lines and wires. These delivery charges are regulated by the New Jersey Board of Public Utilities; no matter who the PSEG customer buys their power supply from (PSEG default or a competitive supplier), the delivery charges will be same.
The Supply section of the PSEG electric bill includes the generation charges, transmission, and capacity costs. In New Jersey customers have a choice of who they buy their power supply from. The New Jersey Choice and Competition act opened up the electricity generation section of the market to competition. This has forced dozens of electricity companies to enter the New Jersey energy market in an attempt to gain market share.
PSEG customers who do not shop for competitive energy rates pay a default rate for their supply charges through PSEG. Competitive rates are up to 20% lower than the PSEG default rates for residential, commercial, and industrial customers. Competitive PSEG rates are available for those consumers who take the time to learn about NJ electric choice and compare electricity rates.