Please browse the frequently asked questions below.
Power Supply Charges
What is the monthly Power Supply Charge?
The Power Supply Charge recovers the cost of the electricity we buy from various electric power providers on behalf of our customers. The biggest part of the Power Supply Charge covers the cost of fuels (primarily natural gas) that we buy for use at Long Island power plants, which we do not own. The Power Supply Charge also includes the cost of power purchased by us from Independent Power Producers both on and off Long Island.
Why does the Power Supply Charge change every month?
Like all electric utilities, our fuel and electricity costs are affected by daily fluctuations in market energy prices. We summarize these daily changes in energy prices into a monthly Power Supply Charge that reflects the cost of purchasing electricity as closely as possible to our customer’s monthly usage.
Is an increase or decrease in the monthly Power Supply Charge permanent?
No. The monthly charge will vary according to what it actually costs to purchase the electricity our customers use for the month. Market prices, weather, and other factors all contribute to month to month variations in what it costs to purchase electricity for a particular month. This means there will be months or periods when the Power Supply Charge increases and other times when it decreases.
The single biggest driver of the month-to-month changes in the Power Supply Charge is the price of natural gas. Almost all of the electricity that we purchase under long term contract or in the spot markets is priced at the cost of natural gas. The second biggest driver is the balancing credit or surcharge based on actual customer usage and the associated actual cost of the electricity we purchased to meet that demand. This element of the Power Supply Charge ensures that customers will only pay for the actual costs we incur.
Interestingly, two factors that do not contribute to the monthly fluctuations in the Power Supply Charge are the cost of fuel oil and the cost of renewable energy. So little of our electricity comes from power plants burning fuel oil that changes to the price of petroleum have almost no impact on your cost. Changes in the price you pay at the pump have little to do with the price you pay to us, either upward or downward. In addition, the electricity that we purchase from renewable resources, and solar power in particular, stabilize the Power Supply Charge because the output from resources like solar panels is purchased at a fixed rate per kWh.
Monthly pricing of the Power Supply Charge allows you to see the cost of electricity as you use it. And you’ll be better able to plan and adjust how you use electricity based on its price. For example, if energy prices rise, you’ll be in a better position to respond to it by taking steps to lower your electric usage through energy efficiency opportunities.
How does the Power Supply Charge affect my bill?
To see how the Power Supply Charge can affect your bill please click here.
Where can I find the Tariff for Electric Service?
Please click here for information on the Tariff for Electric Service.
There are many ways for you to directly affect the amount of your bill beginning with using electricity more efficiently. It’s that simple and it’s easy to do. From changing the type of light bulbs you use, to upgrading your air conditioning, you have a lot of control. We are here to help you save energy and money and we offer rebates on a variety of energy efficiency improvements that can lower your bill. Visit us at www.psegliny.com/efficiency for more information about ways to lower your energy usage and save money. We also offer Balanced Billing, which evens out the seasonal ups and downs in your costs to give you a stable bill throughout the year. It makes your electric bill predictable, like the rent or mortgage payment, to help you better manage all your expenses.