- Advertisement -

About That Increase In Your Electricity Bill


Share post:

- Advertisement -

Last year, Verona introduced a program to help residents buy electricity from more sustainable sources and at a lower price than PSE&G. All Verona households were enrolled in the Sustainable Essex Alliance Renewable Government Energy Aggregation (SEA) program, but residents had the ability to opt out. If you are in it, you may have gotten a letter from Direct Energy about a billing increase. Here’s what happened.

Under the contract that began in June 2019, residents in the SEA program got power at a contract price that was more than 10% below the average posted PSE&G price for power supply. There are two components to an electricity bill, power supply and transmission costs.

The contract between Verona and Direct Energy prohibits price changes, except for costs caused by a change in law or other governmental action. Early this year, the Federal Energy Regulatory Commission approved a large increase in the price that power suppliers pay to use the high-voltage transmission grid that moves electricity from power plants to the PSE&G distribution system. That changed affected Direct Energy as well as PSE&G.

While Direct Energy can adjust the SEA contract price to recover this cost increase, Verona’s contract specifies that the adjustment can be no more than the increase in PSE&G’s price caused by the same government action. According to township officials, the transmission cost increase raised PSE&G’s power supply prices by about 1.2 cents per kilowatt-hour. About one-third of that increase took effect in February, and the rest in June.

But before you opt out of the SEA contract, you should take this into consideration: PSE&G customers are paying the same power supply cost increase. Verona’s SEA savings relative to the overall PSE&G price remains the same and the SEA contract continues to deliver more energy from renewable sources than the power supplied directly by PSE&G.

If you do want to opt out, you can contact Direct Energy at 1-866-968-8065 or by emailing [email protected]

- Advertisement -
Virginia Citrano
Virginia Citranohttps://myveronanj.com
Virginia Citrano grew up in Verona. She moved away to write and edit for The Wall Street Journal’s European edition, Institutional Investor, Crain’s New York Business and Forbes.com. Since returning to Verona, she has volunteered for school, civic and religious groups, served nine years on the Verona Environmental Commission and is now part of Sustainable Verona. She co-founded MyVeronaNJ in 2009. You can reach Virginia at [email protected]


Please enter your comment!
Please enter your name here

- Advertisement -

Related articles

Register Now For Kids Mountain Bike Race

The Hilltop Grasshopper Kids Bike Race, a youth mountain bike race started by Verona residents more than a...

UNICO Presents Scholarships, Member Awards

The Verona Chapter of UNICO National, the nation’s largest Italian-American service organization, is pleased to announce the recipients...

Library Features Multimedia Artist Wendy Born

The Verona Public Library is featuring multimedia artworks by local artist Wendy Born through the end of August....

Patricia Lee Smith, 77

Patricia Lee Smith, a lifelong resident of Verona, passed away on June 3, 2023, at the age of...
- Advertisement -
error: Content is protected !!