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PSEG History

At the end of the 1890s, New Jersey's utilities were subsidiaries of street railways. They operated mostly to provide power to streetcar and trolley railways. Many of these street railway companies were poorly managed, dangerously operated, and badly financed. When 30 people were killed in a horrific Newark streetcar accident in 1903, public outcry launched a crusade to reform New Jersey's transit companies. In response, Thomas McCarter, the youngest attorney general in the state's history, saw an opportunity to do just that.

McCarter and others formed the Public Service Corporation (PSC) with $10 million to buy up more than 500 gas, electric, and transit companies in New Jersey. It was a shrewed move. Revenue from the first year of operation hit nearly $17.3 million, with over half caming from street railways. But as more homes bought electric lighting and appliances, the demand for electric service took off. In 1924, PSC formed the Public Service Electric and Gas Company (PSE&G) and four years later, PSC merged all of its various gas and electric businesses into PSE&G to form one company.

PSC's expansion and success attracted the giant investment holding companies of the time. In 1929, the United Corporation bought control of PSC (and with it, PSE&G). United Corporation soon grew to control over 100 other corporations, including 13 utility companies. However, as a result of the Public Utility Holding Company Act of 1935, the United Corporation was forced to divest itself of its holdings, including PSC.

In 1948, PSC voluntarily dissolved, leaving PSE&G as an independent company. Though PSE&G retained the Public Service Coordinated Transport (PSCT) transit company as a subsidiary, the growth of the suburbs and reliance on cars in the 50s and 60s cut into profits from PSCT. Though PSE&G rebranded PSCT into Transport of New Jersey in 1971, the move was temporary. PSE&G sold off its transit subsidiary to New Jersey Transit a decade later.

In 1985, PSE&G created a new parent company, Public Service Enterprise Group (PSEG). When New Jersey deregulated its electricity market, this new parent company formed PSEG Power to assume power generation operations from PSE&G. This freed PSE&G to become a distribution-only utility.

All the same, as the state's oldest and largest publicly owned utility, the company is best known to its customers as just PSEG.

Headquartered in Newark, PSEG takes an active role in all the communities it serves. Through the PSEG Foundation, it fund grants to more than 200 nonprofit organizations that have an impact in the communities in New Jersey. Its programs in education and outreach seek to build pathways for students interested in studying STEM subjects. PSEG is also dedicated to transitioning to a low-carbon future in a just and equitable way.

PSEG Service Territory

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  PSEG New Jersey Electricity
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  PSEG New Jersey Electricity and Natural Gas

PSEG serves approximately 2.6 million electricity and natural gas customers in more than 300 urban, suburban and rural communities in these central and northern New Jersey counties:

Bergen Burlington Camden Essex Gloucester
Hudson Hunterdon Mercer Middlesex Monmouth
Morris Ocean Passaic Somerset Union

PSEG serves these cities:

Clifton New Brunswick Passaic Perth Amboy Union

Shop for PSEG Electricity Suppliers In Your Area.

Shop for PSEG Natural Gas Suppliers In Your Area.

Compare PSEG Electricity & Natural Gas Rates

Compare alternative supplier electricity and natural gas rates
in the PSEG service area.

  1. Enter zip code.
  2. Select electricity or natural gas.
  3. Choose "residential" or "business".
  4. Click "Shop for Rates".

New Jersey electricity and natural gas utility service territories can overlap in some zipcode areas. If the tool reports that it has found more than one serving your zip code, don't worry! Just choose your local utility from those listed.

You'll then get to see the listing of all the energy suppliers' plans available in your area, along with rates, term lengths, and links to more detail information.

How to Start New PSEG Service

Start your new service by calling PSEG customer service at 1-800-436-7734. or by using their convenient secure online form to schedule the start date for your electricity and natural gas services.

You will also need to provide:

  • Address you are moving to
  • Phone number
  • Email address
  • The date you want to start service
  • Social Security number

Once PSEG receives the service request, it takes up to 5 business days to complete. Be sure to register for online account management services.

Will I Need to Pay a Deposit?

PSEG checks your credit worthiness before setting up an account and to determine whether you will need to pay a deposit.

TIP -- Be sure to unfreeze your credit. If you have frozen your credit with any of the major credit agencies, you will need to have it temporarily unfrozen before you submit a new service request.

New Jersey law allows utilties to charge a reasonable deposit as a condition of supplying service to new customers.

  1. The deposit amount is calculated at two times the average monthly bill for the previous 12 months.
  2. Deposits are usually due with the first bill. However, customers can contact PSEG customer service to arrange installment payments.
  3. Customers that fail to pay a bill within 30 days of the due date may require an existing customer to furnish a deposit or increase their existing deposit.
  4. Deposits are eligible to be returned to residential customers after 12 months of on-time payment.
  5. Customers can have their deposit refund applied to their account as a credit or receive a refund check.

Understand PSEG Delivery and Supply Charges

In New Jersey, residential customers pay for both the cost to deliver their electricity and natural gas as well as as the commodity cost for the amount of supply that they use.

  • Delivery Charges are fixed rate charges (tariffs) representing the cost of transmitting electricity or natural gas to your home via PSEG's power lines and pipeline networks. The charges cover PSEG's local infrastructure operating costs, maintenance, and ensure them a profit. Other usage-based charges are small costs from riders to fund projects, cover fees, etc. PSEG's delivery charges must be approved by New Jersey Board of Public Utilities (the BPU). All PSEG customers pay the same set Delivery rates (one for electricity, one for natural gas) no matter who supplies their energy.

  • Supply Charges represent the price for the amount of energy supply that you use. Customers can choose PSEG's "Price to Compare" for electricity supply or their natural gas supply. However, because of New Jersey 's Energy Choice program, customers are free to also choose energy from a competitive retailer called a "Third Party Supplier" or TPS.

  • Understand PSEG PTC Charges

    The BPU requires PSEG to provide both electricity and natural gas supply at a basic service rate to customers in their service territory who don't shop for a retail supplier. These default rates are overseen by the BPU as they repesent costs that are passed directly through PSEG onto consumers without mark up. They are usually called the Price to Compare.

    Price to Compare (PTC)

    The PTC or "Basic Generation Service" represents the actual price the utility pays for the electricity. It includes not only the cost to generate the electricity but also the cost to transmit it from power stations over high tension power lines to PSEG's local electrical switch yards. From there, the electricity is distributed throughout PSEG's local electrical grid for delivery to homes.

    PTC rates are determined during periodic auctions for set periods of the year. PTC rates generally change seasonally on June 1st and October 1st of each year. That means electricity rates can vary seasonally; low some months, higher the next.

    PSEG Current PTC Residential Rate: 9.945 cents per kWh, expires 8/31/2024

    Basic Gas Supply Service

    The Basic Gas Supply Service rate represents 100% of PSEG's gas costs incurred to purchase and deliver natural gas to its system.

    This is a the BPU-approved default rate for the New Jersey natural gas supply to gas customers who don't shop for retail supplier. The drawback with Basic Gas Supply Service is that its rate can vary monthly throughout the year. Sometimes it's low, sometimes it's high.

    PSEG Current Basic Gas Supply Residential Rate: 0.362 cents per therm, expires 2/29/2020

    How Much Do PSEG PTC Charges Cost?

    Both the PSEG electric and gas rates change periodically during the year. That makes it important for consumers to know and understand how much they are paying for their electricity and natural gas in any one month.

    How much is the PSEG Electric PTC rate?

    the BPU estimates that the average New Jersey residence uses an average of 687 kWh each month.

    PSEG divides the year into summer rates (June through September) and non-summer rates. PSEG currently charges a different residential distribution rate for any usage over 600 kWh per month. However, in the current tariff, it's only the summer months where the rate is different. Therefore, an average, non-summer, residential PTC bill roughly breaks down like this:

    Rate per 687 kWh Used, including Sales and Use Tax (SUT) Monthly Customer Charge Total
    PTC Supply Rate 9.945 cents 0 $68.32
    Monthly Distribution Charges $0.035553 per kWh $4.64 $29.06
    Total Bill $97.38

    How much is the PSEG Natural Gas PTC rate?

    Because New Jersey can see some cold and snowy winters, natural gas usage for heating in the winter months is usually very much higher than the hot summer months.

    According to the NJ BPU, a typical residential natural gas customer in New Jersey used about 610 therms annually. That comes to about 100 therms in the winter. So, an average winter PSEG gas bill will break down this way:

    Rate per 100 therms Monthly Customer Charge Total
    Basic Gas Supply Rate 0.362 cents 0 $36.20
    Monthly Distribution & Balancing Charges $0.5590684 per therm 8.62 $64.53
    Total Bill $100.73

    What is the "Balancing Charge"?

    Natural gas utilities not only need to buy gas to supply their customers, they also must buy a supply of gas to keep their pipelines and storage tanks at the right pressure to keep gas moving to your home.

    The Balancing Charge is essentially a charge for using some of the natural gas utility's gas supply in its pipeline and storage systems from October through May

    Understand New Jersey Energy Choice

    New Jersey natural gas consumers are free to choose their own competitive retail electricity or natural gas supplier. Known as "Third Party Suppliers" or TPS, they shop deals with different producers on the wholesale market to offer their customers competitive rates. As such, TPS rates are not controlled by the BPU. This way, retail suppliers are able to offer competitively priced fixed rate plans for a variety of term lengths.

    Though it can seem confusing, shopping electricity and natural gas plans is an easy process. The trick is finding the one that meets your needs. That's why retail energy suppliers in New Jersey offer two types of plans:

  • Fixed Rates have their price rate set for the same price over the term of the contract. That means customers can count on stable energy rates on plans lasting from 6 to 36 months. However, many fixed rate plans come with early cancellation fees for breaking a contract early.

  • Variable Rates Want to avoid getting tied to an electricity or natural gas plan for months or years? Then choose a variable plan. Variable plan rates on these contracts can change from month to month depending on the price of the electricity or natural gas supply. But while there's no contract, there's nothing to prevent your rate from going up one month or down the next. However, these plans don't have any termination fees and this allows customers the flexibility to shop for new rates and switch to better deals without paying any penalty.

  • Understand Your Energy Usage and Your PSEG Bill

    Your PSEG usage affects your energy bills.

    While your energy usage habits are unique to you, any New Jersey native will tell you, winters can be blustery and cold while summers can be hot and muggy. In the Mid-Atlantic region of the U.S., about 52% of an average home's energy usage goes to space heating.

    Average Annual Usage Breakdown

  • About 15.9 % of New Jersey homes use electricity for space heating, natural gas warms 72.8 % of homes in the state.
  • According to the BPU's estimates, the average New Jersey home uses roughly 100 ccf of natural gas per month.
  • New Jersey residents use an average of 6% to 12% of their total annual energy costs for air conditioning.
  • The remainder of energy use goes to water heating, refrigeration, lighting, electronics, clothes dryers, cooking, and small appliances.

  • Want to learn more about your home energy usage? PSEG customers can see 13 months of their past electric usage plus other relevant information free of charge on their PSEG on-line account.

    The best way to cut your gas bill is to reduce your usage:

  • Seal your doors and windows against winter and summer drafts. Not only does it keep out the cold or hot air but it also reduces the amount of mold, pollen, and other allergens getting into your home.
  • Add insulation to your attic, basement, and duct work.
  • Install a programmable or smart thermostat. Programming it to set-back the temperature when you're away or inactive can improve your home's energy efficiency and help cut your electricity bill.

  • Understand Your PSEG Bill

    Your PSEG electric and natural gas bill also comes packed full of useful information to help you better understand your usage and rate. But all these different line items that can be confusing to customers. Here is where we break down the most important items. Below is a sample PSEG Electricity & Natural Gas bill.

    PSEG Sample Bill

    Understand Your PSEG Bill

    Understand Your PSEG Bill

    Understand Your PSEG Bill

    Understand Your PSEG Bill

      Page One

    • A: Bill Overview. This shows the total amount due and the due date. It also shows the date of the bill and the period it covers.

    • B:This sections shows your 10 digit PSEG account number and your service address. To the left in blue is the PSEG Message Center which shows important and useful information that may affect your bill.

    • C: This snapshot of what you owe covers the balance (if any) from your previous bill, the current month's charges and credits, and the total amount due. It also sums up how much electricity and natural gas your are currently using compared to one year ago.

    • D: Here you can see the date for your next meter readings as well as contact information for PSEG.

    • E: Bill Stub. This section shows your mailing address, PSEG account number, the total due for this bill, and provides a space to write the amount closed. You can detach this stub and mail it into PSEG with your payment.

    • Page Two

    • F: This section details the balance remaining from your last bill and your payment. Below, it shows the amounts due for the current month's natural gas and electricity.

    • Page Three

    • G: Here you can see a break down of your current natural gas charges. This includes beginning and ending meter readings and the total amount of therms used.

    • H: The first section summarizes your current PSEG natural gas delivery charges. The second section summarizes your natural gas supply charges from your provider.

    • I: The graph shows how much natural gas you have been using over the past 13 months in terms of therms and how they relate to temperatures.

    • J: Explanation of current natural gas Price to Compare Gas Supply rate. It also shows your POD ID. You will need this number when you shop for a Third Party Provider for natural gas.

    • Page Four

    • K: Here you can see a break down of your current electricity charges. This includes beginning and ending meter readings and the total amount of kilwatt hours (kWh) used.

    • L: A break down of your usage history breakdown shows the amount of your monthly electricity and natural gas usage for the past 13 months.

    • M: The first section summarizes your current PSEG electricity delivery charges. The second section summarizes your electricity supply charges from your provider.

    • N: Explanation of current electricity Price to Compare Supply rate. It also shows your POD ID. You will need this number when you shop for an electricity Third Party Provider.

    PSEG Coupons, Energy Promotions, Discounts, Rebates and Promo Codes

    As your local electric an dnatural gas utility, PSEG offers several rebate and energy efficiency programs to help customers save money off their monthly bill by upgrading their home's energy performance. Some programs also offer money-saving incentives while others could make paying your monthly bills much easier during those expensive winter months.

    Program Name Program Type Benefit
    Appliance and HVAC Rebates Program Energy Efficiency Rebate Program

    PSEG residential customers can now take advantage of rebates on the purchase of ENERGY STAR® certified appliances and HVAC systems.

    • Appliances include energy-saving air purifiers, dehumidifiers, water heater, washers, dryers, and more with rebates from $30 to $1000.
    • Get up to $15,000 when you upgrade to high efficiency heat pumps, boilers, furnaces, and water heaters through the HVAC Instant Rebate Program with a PSEG participating contractor.
    Lighting Discounts Program Energy Efficiency Rebate Program

    PSEG has partnered with the following local retailers to offer instant discounts on select ENERGY STAR® certified LEDs.

    Participating stores include BJ's Wholesale Club, Costco, Lowe's, Sam's Club, Target, Home Depot, and Walmart.

    Appliance Recylcing Program Energy Efficiency Rebate Program

    Recycle your old working fridge or freezer and get $50. You can also receive a $25 rebate for an old, working dehumidifiers unit if picked up along with a qualifying fridge or freezer. Plus, you can save money on your electricity bill when you purchase a new ENERGY STAR® appliance to replace it.

    • Must be an electric customer of PSEG.
    • You must own the appliance(s)
    • Refrigerators and freezers must be 10 to 30 cu. ft. in size, empty, clean and free of mold, and operating (cooling) at the time of the scheduled pickup.
    Quick Home Energy Check-up (QHEC) Energy Efficiency Rebate Program

    PSEG residential customers can sign up for an in-person visit with an Energy Specialist:

    • Inspect your home and identify areas where you may be wasting energy
    • Install energy-saving products at no additional cost.
    • Make recommendations for upgrades that can save energy and qualify for rebates.
    Home Weatherization Program Residential Energy Efficiency You may be eligible to receive a free assessment to identify areas for energy efficiency improvements. Depending on your home's needs, you also may be eligible for installation of up to $6,000 in energy efficiency upgrades and up to $1,500 in health and safety improvements??"all at no cost to you.
    Among the improvements included:
  • LED light bulbs, faucet aerators, advanced power strips, water heater pipe insulation
  • Upgrading insulation,air sealing of windows and doors, ductwork sealing
  • installation of a programmable smart thermostat.

  • BPU Winter Termination Program Bill payment assistance

    From November 15 through March 15, the program prevents residential gas and electric customers who qualify from having their gas or electric service disconnected during the winter months. Call PSEG Customer Service.

    PSEG Deferred Payment Arrangement (DPA) Bill payment assistance

    You can pay your past due balance over an agreed upon period of time.

    • Your DPA plan is based on the amount of the balance and the average of your regular monthly bill.
    • During the period of your DPA, each month you'll continue to pay your regular monthly bill, plus the DPA amount toward your past-due balance.
    • Contact customer service or sign up online.
    Low Income Home Energy Assistance Program (LIHEAP) Bill payment assistance

    A Federal grant to help pay your winter heating bills. PSEG heating customers that apply usually receive an average of $300 towards their energy bill, and about $200 for medically necessary cooling, if qualified.

    New Jersey Universal Service Fund (USF) Bill payment assistance

    The New Jersey Board of Public Utilities created the Universal Service Fund (USF) to help make energy bills more affordable for customers. If you're eligible, USF can lower the amount you have to pay for your gas and electric bills. You can apply online.

    New Jersey Lifeline for Seniors and Disabled Adults Bill payment assistance

    New Jersey Lifeline is a $225 yearly electric or gas bill credit for seniors or disabled adults in New Jersey. To qualify, you must be a New Jersey resident, 65 years of age or older, or 18 years of age or older and receiving Social Security Title II Disability benefits.

    Equal Payment Plans Bill payment assistance

    PSEG offers a variety of payment plans that allow you to avoid spiking mid-winter bills or to pay your past due balance over a period of pre-determined months.

  • PSEG will analyze your last year's usage.
  • They then forecast your yearly energy costs and divide the total into equal monthly payments.
  • Once a year, you'll be billed your regular Equal Payment Plan amount plus any balance due, or less any credit.

  • PSEG Reviews

    To be sure, PSEG is a much-lauded company. It was recently ranked 189 in Newsweek magazine's 2020 list of America's Most Responsible Companies, out of 2,000 companies analyzed. So because PSEG serves a large New Jersey market segment, understanding how it compares to other large-scale incumbant utilities can show just how well it serves its residential customers. PSEG is not accredited with the BBB but was well-rated in both J.D. Power's 2021 utility residential customer satisfaction studies. The utility also came in at second place in Escalent's 2021 Utility Trusted Brand & Customer Engagement™: Residential study.

    NJ Energy Ratings Score Better Business Bureau J.D. Power 2021 Electricity Utilty Study J.D. Power 2021 Natural Gas Utilty Study Escalent 2021 Utility Study
    N/A not accredited,
    A rating
    of 1000 pts
    of 1000 pts
    of 1000 pts

    How do I Get the Cheapest PSEG Rate?

    Shopping for a new TPS in PSEG can seem bewildering at first. Once you understand how it works, though, it's an easy and straightforward process. That said, you should have these three things with you when you shop for electricity or natural gas.

    1. Your current bill. Your past usage per billing period can help you estimate a how much a plan might cost you each month.
    2. The current PSEG BGS or gas rate and expiration date. Knowing the current PSEG supply cost gives you a price to compare with alternative energy suppliers. This way, you can get a better feel for what they're offering, for how long, and if any of their incentives make their price work for your family's need.
    3. Your PSEG customer account number. This 10 digit number is located in the upper left corner of your bill. You'll also need your POD ID #. The one for gas is on page 3 of your bill, electricity is on page 4. Keeping this information handy lets you sign up for TPS offers right away.

    PSEG Shopping Questions

    Often when you know the right questions to ask you'll learn exactly what you need to save money or avoid making a bad choice. When you shop for electricity or natural gas service in New Jersey, always be sure to ask the supplier these important questions:

    • Is the rate competitive with PSEG's electricity or gas basic supply rate?
    • Is the rate variable or is it fixed?
    • How long does the plan last?
    • What happens when the contract expires?
    • Does the plan have any recurring monthly charges?
    • Does the plan come with an early cancellation fee?
    • Does the supplier offer any customer incentives or rewards?

    There are also some other important things to understand ahead of time:

    Who bills me? PSEG sends a single bill that outlines and adds up your monthly charges.

    What are the Terms of Service? The Terms of Service explain and identify specific charges and any fees a customer will face when they sign up for an electricity or natural gas plan. Many suppliers offer different rates for plans with different term lengths. All New Jersey energy customers should read and understand what's in a TPS's terms of service and contract summary for any plan they are interested in before they sign on to the plan.

    What are early termination fees? Switching retail suppliers before a contract ends can involve paying early termination fees. These can take a chomp out of your checking account you if you want to switch retail providers before your electric or natural gas plan contract ends.

    Where can I find more information on my usage? PSEG customers can request up to 13 months of their gas usage plus other relevant information free of charge on their monthly PSEG bill or through their online PSEG account.

    Read PSEG Customer Reviews

    Compare Electricity & Natural Gas Rates in Your Area

    Electricity Service Out? Do You Smell Gas?
    Contact PSEG !

    Problems or interruptions with your PSEG Electricity & Natural Gas supply? Here's the proper people to call:

    • Billing problems? - First thing to do is contact PSEG. If you have trouble paying your monthly bill call PSEG 's Customer Service:1-800-436-7734.
    • Need extra time to pay your energy bill? Contact PSEG. Cusotmers can Deferred Payment Agreement (DPA). Call Customer Service or apply on-line.

    Emergencies and Outages

    For all emergencies, call 911 immediately!

    • Electricity -- call PSEG a 1-800-880-PSEG (7734).
    • All power transmission lines are extremely dangerous! Never attempt to move a downed power line by yourself. Call 911 and then notifiy PSEG.
    • Check PSEG 's current electric outages as they are being repaired.

    • Natural Gas -- Call PSEG at 1-800-880-PSEG (7734).
    • Natural gas leaks are extremely dangerous. Any kind of spark can ignite an explosion.

    What If You Smell Natural Gas?

    Leave the area immediately if:

  • You SMELL natural gas. Mercaptan is added to natural gas to give it the distinctive stink of rotten eggs.

  • You HEAR unusual sounds like hissing or whistling.

  • You SEE a damaged connection to a natural gas appliance, dirt or water blowing into the air, a dry patch of grass, or a fire or explosion near a pipeline.

  • Don't try to find the source of the leak. Just stop what you're doing and move to a safe distance at least 350 feet away.

    Natural gas pipelines are important projects. Aging natural gas pipelines need to be replaced to maintain safety and reliability while new pipelines can help growing neighborhoods and businesses. You can learn more about PSEG pipeline projects to see what projects could affect your service.

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