New Joisey Residents--get up to a $150 TARGET Gift Card for Switching to Constellation Energy (contract req'd)

Just got something in the mail from a different company about this issue. Anyone know why I shouldn't switch to one of these competitors?

BrianGa said: You may or may not save on your bill - no guarantee. If their price goes up, you are locked in.
This is kind of right and kind of not.

They offer fixed-price plans, so you won't have to worry about the price going up. For me, it would be 10.1 cents/kWh.

However, there's no guarantee that 10.1 cents will always be lower than your "regular" supplier (PSE&G, JCPL) because their rates change month-to-month. So you may or may not save on your bill, but it won't be because the price fluctuates.

I went back and looked at my bills for the last two years and found that I have almost always been paying around 12 cents/kWH, with mild ups and downs. So this looks like a good deal for me, but I'm going to research other companies and options first.

Good luck!

Constellation TERMS AND CONDITIONS

My lowest for the last two years was 11.3 cents/kWH. This looks like a good deal. There is also Gateway Energy Services and this beats that! What happens if you move out of a service area? Cancellation fees? etc? I don't like the variable part of it. It should be either fixed or not. Seems like they are locking you in for low rates now and then later could be like its 15 cents/kWH. Decisions, Decisions....
https://www.gesc.com/Products/Enrollments.aspx?sc=RES&state=NJ>c=PSG&etc=PSE&z=&a=&webpromo=

The Constellation Energy plans DO HAVE VARIABLE RATES in the contract. Please be aware!

very interesting, i've been curious about this stuff for a while. My current PSE&G bill says 'The total supply amount (X, or an average of $0.117621 per KWh) is your Price to Compare for this month should you consider another electric supplier for these services.'

Also i noticed in the terms and conditions that vrundmc linked, the variable pricing language is a little scary, but at the bottom it says: 'Your price during the variable pricing period will reflect market conditions and supply costs which could result in a price higher or lower than the utility price. You can terminate without penalty during this period.'

So it would seem that if i'm interpreting correctly...if they pull some funny business in the last 6 months of the contract, you can end the arrangement at that point. It has similar wording in the Termination section, that there should be no termination fee if you end it during the variable pricing period.

I think i may jump on this...

As I understand it, you will still be paying for distribution/delivery from PSEG/your company.
Look at your bill, you have two charges, one for delivery and one for supply. Your supply is what your getting a different provider for.
Example from my bill:
The total supply amount ($153.38, or an average of $0.120110 per kWh) is your Price to
Compare for this month should you consider another electric supplier for these services.
Your Price to Compare varies each month depending upon your usage pattern.

niravashah said: What is their distribution charges in comparison to PSE&G?

I just spoke to their customer service and here are the answers I got for some questions I had.

- The cancellation fee during the fixed rate period is $150/$75 depending upon the duration of your contract and associated Target gift card. During the variable rate period, we are out of contract & are free to cancel. The cancellation fee does not apply if you move, only when you switch providers.
- The Daily Service charge in your bill is the cost borne by JCP&L and should be fixed across any provider, as in they can't discriminate against you for leaving JCPL or PSEG and switching to another provider.

Hope many more Jersey residents ask sensible questions here for everybody to tread into this new marketplace. I think the $150 gift card from Target is a nice deal to go with, in addition to the 10-15% savings for at least the first 24 months. We, just have to watch like a hawk the bill in the 25th month to make sure we don't negate the savings over the first 24 months.

As one other poster commented earlier, their fixed rate is consistently cheaper than what at least JCP&L is giving me.

I signed up. JCPL is charging me 12.6 cents per KWh.
Last month I used 2100 KWh with the AC on constantly.
I would have saved a bunch of $$$
12.6x2100 =$264.6
10.4x2100=$218.4
savings of $46.2

That sounds good enough to me!

I just signed up, got a letter in the mail from them as well. Seems like a decent deal to start with, the Target gift card makes it even sweeter!

i am tempted to jump in.
does anyone know when does variable period starts? thx

Right

javaman2003 said: What happens if you move after signing the contract? do you then have to pay any kind of penalty to cancel?
If you move, they force you to read post #13 by thayirvadai in this thread.

The 10.1c does not include taxes. PSEG price to compare I believe includes taxes.

gglw said: The 10.1c does not include taxes. PSEG price to compare I believe includes taxes.
That's a good point.

i'm expecting to get my first bill post-switch soon, will try to remember to come back and post what i see in terms of the taxes and actual rate that i end up getting charged

I got an offer at home in Maryland
$25 Target Gift Card - One year Contract
$50 Target Gift Card - Two year Contract

Interesting point on the taxes. I think that since this rate only covers our *SUPPLY* charges, that there won't be any taxes. If there were PSEG would mention it too. PSEG does mention tax but for the *DELIVERY* costs (which we will still pay PSEG for). The only mention of taxes is in this statement for PSEG:

Securitization Transition Charges: The Electric Delivery charges
include costs and associated taxes for transition bonds and for BGS
transition bonds collected by PSE&G as servicer on behalf of PSE&G
Transition Funding LLC and PSE&G Transition Funding II LLC, respectively.

Now the Constellation Energy fine print:
Your Fixed Price: The fixed prices quoted above are for electric generation service including transmission charges, are not regulated by the New Jersey Board of Utilities and do not include any applicable taxes, utility distribution charges or other utility fees or charges. Early termination during the fixed price period may result in an early termination fee; see our terms and conditions for details.

Anyone get a bill yet?

Does anyone know if this includes the 7% NJ Sales tax in that rate or will tax be will on top of that? Here are a few links that the state has to educate consumers about the questions/issues to consider!

http://www.state.nj.us/bpu/commercial/shopping.html

http://www.state.nj.us/rpa/shop.htm

and the local paper article abt it all:

http://www.nj.com/business/index.ssf/2010/09/post_109.html

After doing the math...even if they charge 7% on the supply, I will still save like $5/month. Free gift card just makes it sweeter. This is estimated on my lowest charge from PSEG over the last 2 years.