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BY UPENDRA J. CHIVUKULA
COMMENTARY
In 1999, the electricity deregulation law lowered New Jersey's electricity rates — at the time, among the highest in the nation — by 10 percent. In addition to those savings, the law introduced competition to New Jersey's energy marketplace. Manufacturers, retailers, public institutions, residential and small business customers were allowed to shop for lower power prices.
Competition is saving millions for business users and taxpayers by spurring development of new renewable energy products and fueling New Jersey's reputation as a national leader in promoting renewable energy and energy efficiency. But, this success has been the frustratingly slow in the residential electric market.
Today, fewer than 2 percent of New Jersey residential customers buy power from a competitive supplier — far below other states offering residential electric choice. In New York and Maryland, and especially, in states such as Connecticut and Pennsylvania, one in three residential customers has used a competitive supplier.
Now that's changing. Millions of New Jersey homeowners and renters are learning about competitive electricity supply offers through the mail and social media networks. The promised savings are considerably significant and meaningful — 10 percent or more below current utility electricity rates.
Competitive suppliers entering New Jersey's market are taking advantage of a sharp drop in wholesale electricity prices — 50 percent below 2008 levels. For the first time in years, competitors can offer New Jersey customers significant discounts to utility rates.
As a homeowner and policymaker, I am glad to see competition and possible savings for energy consumers. Aside from the immediate opportunity to save, I believe the policy implications are just as important — consumers now have choices when purchasing electricity.
Today, we can shop and save on power similar to other goods and services, such as mobile phone services and mortgage rates. This is the promise of deregulation- introduce competition and over time market dynamics will deliver lower costs and innovation to consumers.
Shopping for electricity is not overly complex, but can be overwhelming. Hence, adequate research and communication with the proper representatives are needed. Like most contracts, electricity supply agreements have important terms and conditions. Some suppliers are offering plans with a fixed price, others a variable price that fluctuates with the market.
Residential electric supply agreements only affect the price customers pay for the electricity commodity, typically about two-thirds of the overall monthly electric utility bill. There is no impact on the remaining third which is made up of the utility's monthly charges to deliver the power to your home and other fees and tariffs. If you choose a competitive supplier, your utility will still deliver the power, and handle reliability and service calls.
It will require more than direct-mail offers and advertising campaigns to sustain New Jersey's nascent market for residential electric shopping. We'll need to revive public education campaigns that accompanied the opening of our electricity market 10 years ago. Suppliers claim they are signing up thousands of customers but it's a safe bet the majority of homeowners and renters are unaware they can lower their electricity rates by shopping in the competitive market.
Policymakers, political and community leaders can nurture competition by getting out the word that customers have choice. A new public sector push for competition will be well worth the cost and effort. Consider the economic stimulus that could result from New Jersey achieving the mass-market customer shopping rates seen in states like Connecticut. Millions of dollars pared from the utility electricity bills will be pumped back into New Jersey's economy.
We're entering a new era in the deregulation of New Jersey's electricity marketplace. It couldn't have come at a better time. Families are struggling to save wherever possible and the funds dedicated for energy assistance for our residents are running low. New Jersey's progressive law on electricity choice can help make a meaningful reduction on costly energy bills.
Assemblyman Upendra Chivukula represents the 17th legislative district and serves as Chairman of the Assembly Telecommunications & Utilities Committee.
Our service offers just that. We offer a FREE service to help commercial, residential and industrial customers find BEST RATES for electricity and natural gas.
http://www.newjerseyelectricityproviders.com
FOR IMMEDIATE RELEASE
New Cheap Electric Supplier AMA Nation/Public Power,LLC is Approved in PSEG,JCPL,ACE Markets in N.J.
PRLog (Press Release) – Nov 04, 2010 – Electric Deregulation has been sweeping NY & NJ. and AMA Nation/Public Power has been on the forefront of this wave of 3rd party suppliers. Con-Ed was approved last year in NYC and customers are already experiencing the benefits. Now in NJ JCPL ,PSEG & ACE are accepting applications from AMA/Public Power customers. It has been documented on the www.NY-NJelectricderegulation.com company website as well as on several TV news shows that switching to a 3rd party provider such as AMA /Public Power,can definitely save customers money on their utility bills. AMA/Public Power's currently posted electric rates are definitely less than rates currently posted for JCPL ,PSEG,ACE, & Con-Ed. The company feels that the majority of people in that market area will save on their current electric bills by switching over and taking advantage of the rate differences. AMA is making it very easy for new customers to come on board by not charging any switchover or termination fees for any of their variable rate programs.
At the time of this report ,the price savings for switching over your residential home to AMA /Public Power for the PSEG market is over 5%. If you live in the JCPL area the savings can be over 10%. Though these variable rates can minimally fluctuate. The monthly savings are real. Also included when you switch providers is their free innovative customer appreciation program This Program provides deep discounts for Travel,Merchandise,Dining and so much more. This program coupled with the monthly rate savings just makes the overall savings even better for the customer.
It should be understood that the customer is only switching electric suppliers. There has been a lot of confusion about this. The customers current utility company will remain servicing their home and they will still continue to receive and pay their bills to them. The customers utility company is already set up to accept this arrangement. So It becomes a seamless integration for the customer. The customer is simply telling them to provide their electricity from a cheaper source. This can be done at www.NY-NJ-electricderegulation.com . Once the utility is instructed by the customer to switch suppliers. The Current utility company will make all the arrangements necessary with the 3rd party electric supplier.
What is even more exciting is the fact that many people are also recognizing Electric Deregulation as a new income opportunity. My website: http://www.endthehype.com/njelectric has been getting so many inquires and questions about this topic. Customers have emailed and said that it’s the most natural thing in the world for them to want to share their money saving discovery with others. They wanted to know if they could make money when they shared this new information with friends and associates.The answer is yes they can. The Consultant Program structure within AMA was designed to make this so easy to do.The concept of Electric Deregulation is so new in many states that 4 out of 5 people that you meet on the street, still do not know that they have the right to switch over their electric to a cheaper provider as detailed in this video report: http://www.4outof5movie.com/njelectric
A AMA/Public Power Consultant can also can quote Commercial Rates and has special programs for NPO’s (Non-Profit Organizations), office or business spaces, Churches, Temples, Condo/Co-op Associations etc.
Complete Information and sign-up instructions can be found at http://www.NY-NJelectricderegulation.com where new videos have just been posted explaining how to switch over as a Customer as well as information about “Becoming a Consultant”. Consumers are encouraged to check this site for further information, as it really explains a lot of the AMA/Public Power customer benefits of Electric Deregulation .
Steve Miller is a Energy Consultant for AMA Nation/Public Power,LLC. We are a 3rd Party Gas & Electric Supplier for Residential homes, Businesses and Non-profit organizations. We supply cheaper Power to NY,NJ,PA,MA,MD,CT,OH with new states being added every Month.