newjerseynewsroom.com

BY KENNETH J. MATULA

COMMENTARY

A recent poll conducted by Farleigh Dickinson University's Public Mind indicates almost two-thirds of New Jersey residents are inclined to switch electricity providers to save 10 percent or more on the electricity portion of their bill. Evolving market conditions indicate the time is right for New Jersey residents to do just that — shop and save on electricity.

A decade after a new law introduced competition to New Jersey's energy marketplace, residential customers have more opportunity to save by choosing a competitive electric supplier. These suppliers include my company, Constellation Energy, a leading national supplier which has served New Jersey businesses since 2002. In just six weeks this fall, Constellation Energy enrolled more than 10,000 residential customers by offering estimated savings up to 12 percent off the current electric generation service prices of PSE&G and JCP&L.

Until January, only a few hundred of the state's residents had taken advantage of their opportunity to choose a new electricity supplier. Today, thousands of New Jersey homeowners and renters are taking advantage of electric choice and the savings being offered by more than a dozen companies.

The success of electricity choice in two nearby states with more mature markets also suggests a growing number of New Jersey consumers will take the steps to shop and save.

In Pennsylvania, more than 500,000 residential users have chosen a new electricity supplier so far this year. In Maryland, 174,000 residential customers signed up to save on lower rates offered by an alternative electricity provider. A marketplace evolution in New Jersey couldn't be more perfectly timed as state leaders are actively engaged in revamping the state's Energy Master Plan.

The evolution of electricity choice as a viable option for New Jersey residents was spurred by a sharp drop in wholesale power prices, which are more than 50 percent below 2008 levels. This has enabled alternative electricity providers to offer pricing below rates currently being offered by their utility. Unlike PSE&G and JCP&L, which purchase power one time a year. Constellation and other alternative electricity suppliers are able to purchase throughout the year, taking advantage of market conditions.

Electricity choice is similar to choosing a home, a car, or a wireless plan. And shopping for power is easy. Very little should change except the price you pay for power. You should still get a single bill from your utility, which also is responsible for delivering the electricity and maintaining the poles and wires just like they have always done.

The opportunity to make a simple change that results in savings has led many New Jersey-based businesses, organizations, and even state and local governments to take advantage of competitive electricity rates. When the lights click on at the State House in Trenton or at major New Jersey sports arenas they're powered by electricity from an alternate provider.

Because so many major companies in New Jersey buy electricity from alternative suppliers, there's a good chance that when you switch on your computer at the office, your employer is reaping the benefits of electricity choice. In addition, the electric savings enjoyed by smaller commercial and industrial businesses in New Jersey create the potential to further benefit an economic sector that is an important engine for job-creation within the state.

Energy savings can make a difference in this economy and the early results show that residents are taking advantage of electricity choice. That puts New Jersey well on the way to joining other states in the region where competitive energy choice is making a positive difference for a large percentage of the state's electricity consumers.

Kenneth J. Matula is a Senior Vice President at Constellation Energy