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The Price to Compare is the price customers pay to their electric utility company, i.e. ACE, PSE&G, RECO or JCP&L, or their gas utility company, i.e. NJNG, ETG, SJG, or PSE&G, for the supply portion of their utility bill.  The Price To Compare represents the portion of the utility bill that will be replaced by the charges of a Third Party Supplier if a customer switches to a third party supplier. 

 

On an electric utility bill, the Price to Compare is the average cost per kilowatt-hour (kWh) for electric generation and transmission.  The Price to Compare includes energy, capacity, transmission, ancillary services, line losses, state sales tax, etc.   The Price to Compare also includes a reconciliation of costs.  The Price to Compare will generally change seasonally on June 1st and October 1st of each year to reflect changes to the energy, capacity, and ancillary service costs components.  However, it will also change from time to time to reflect Federal Energy Regulatory Commission approved changes to the transmission cost component, changes to the reconciliation cost component and other approved changes.

On a gas utility bill, the Price to Compare is the average cost per therm for natural gas supply.  It includes state sales tax.  The Price to Compare will generally change on October 1st of each year to reflect changes to the wholesale cost of natural gas, the cost of transporting the natural gas to the utility’s system, and a reconciliation of costs from the prior year.  However, it can also increase on December 1st and on February 1st of each year if costs increase significantly.  The utility is also permitted to self-implement rate decreases (or bill credits/refunds) at any time.

If a customer can find a TPS to sell electric supply for a price that is less than their electric utility’s Price to Compare and/or sell them gas supply for a price that is less than their gas utility’s Price to Compare, then that customer may be able to save money on his or her utility bill. 

The New Jersey Board of Public Utilities is providing the information on this website for educational purposes only. Individual gas and electric suppliers are responsible for the contents of their advertising and marketing materials and pricing offers. For additional information about the contents of this website, please click the legal statement & disclaimers tab, the privacy notice tab, and the translator disclaimers tab, which appear below or to the left of this banner.