Poll Shows New Jersey Consumers Support Competition in State’s Electricity Market

A new statewide poll conducted by The Fairleigh Dickinson University shows most New Jersey consumers would switch electricity providers in the state’s competitive market if they could save 10 percent or more on the electricity generation portion of their utility bill. The poll, conducted among nearly 700 residents who participate in household financial decisions, found 64 percent of residents are very likely or somewhat likely to choose a new supplier if the economic benefits were adequate.
 
These results are not surprising, considering how quickly competition has grown in the Garden State among electricity suppliers in 2010. More than 30 electricity suppliers are now certified by the New Jersey Board of Public Utilities to offer competitive electricity plans to residential consumers. Switching rates grew in all four incumbent utility territories over the summer. Choice is clearly creating economic benefits, but they are not the only positive market outcome.
 
Beyond helping consumer budgets, market forces are also helping New Jersey transition to a clean energy future. As in several other competitive markets, solar energy investment is happening when companies innovate in order to attract and retain customers. COMPETE member PSE&G, the state’s largest incumbent utility, is investing in solar energy across the state because its “customers tell us they want the benefits of green energy,” said Ralph Izzo, PSEG president and CEO, in an August 22nd Courier-Post editorial.
 
Organized markets are also sending accurate price signals to non-incumbent utilities and other investors that the time is right for solar energy projects. Officials from Con Edison and Panda Power Funds recently broke ground on a 20-megawatt (MW) solar facility in South Jersey, which will provide enough power for 5,100 homes when completed in 2011. In addition, a municipal redevelopment program expects to break ground this fall on a 6.5 MW solar installation which will contribute enough energy to the grid to power 1,500 homes once completed. Both projects will connect through the grid through their incumbent utilities and contribute power to the PJM Interconnection.
 
Once again, competition is creating economic and environmental benefits. Consumers are making their preference for competitive electricity markets felt, and the market is responding. Electricity in the state is getting cleaner and competitive pricing options more abundant with every day. For New Jersey’s consumers, the future is bright.

Joel Malina | October 26, 2010