Report: #983401

Complaint Review: New Jersey Gas & Electric

  • Submitted: Mon, December 17, 2012
  • Updated: Fri, February 15, 2013
  • Reported By: Jennifer — Teaneck New Jersey USA
  • New Jersey Gas & Electric
    1 Bridge Plaza, 2nd Floor
    Fort Lee, New Jersey
    United States of America

Show customers why they should trust your business over your competitors...

I am incredibly disappointed with NJ Gas & Electric, a division of US Gas & Electric that services the residential and commercial gas and electricity needs for me as part of the 3rd party providers.

I signed up with NJG&E a few months back when they promised me that I should be able to save money every month over PSE&G, the local utility company. I switched from one company who was only charging me about $0.008 over PSE&G's rate to a company that I thought should be able to help me. Lo and behold, the company offered me three months of good rates and then they decided to get greedy.  I understand electricity is a commodity and that these companies claim they are purchasing the supply on the open market, but there is NO way that a company would be consistently purchasing the supply at a greater price than the local utility company.  Last month, the utility was charging only $0.106813 per KWh. NJG&E was at $0.1324 for the same KWh.  On gas, they were the same - More than a penny more per therm than PSE&G.  This month, they got even worse. On electricity, they were over $0.135/KWh whereas PSE&G was at $0.1067 - a decrease from the month before. 

I'd like to know how a company who says they will save you money can have so many months of showing a loss to their customers? If I promised a savings over another company, I better be sure I have a solution for that. If I cannot meet it one month, ok - things happen and with Sandy, things got messed up.  But 2 months in a row (and probably longer than that - I just can't find my bill from 3 months ago), it's no excuse. This company is simply deciding to gouge where they can and should be made to pay.  The free market is great - I switched away from these cheats, but the public has a right to know before signing up with NJ Gas & Electric (whose parent company also services Connecticut, Michigan, Illinois, Indiana, New York, Kentucky, Ohio, Maryland, Pennsylvania, Massachusetts).
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This report was posted on Ripoff Report on 12/17/2012 03:23 PM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 REBUTTAL Owner of company

NJG& E is sleezy

AUTHOR: Len G - ()

This persons experience is similar if not identical to mine.  For a few months I had a good rate but then the rate was at least 3-4 cents above the utility i switched from  They state that nothing is guaranteed but that it depends on the cycle.  Im not an idiot and even if the cycle is off  it should be less over a 12 month period  they try to dance around the issue and expalin it in many unknown ways using jargon of the inductry but the bottom line is that they are overcharging on a regular basis  They even explained that the reason I was charged more was that I was in a high risk category  My utility informed me that for all of the months except one I was current and that I had a good payment history.  Over the course of one year they overcharged me about $1000.  How do i know this ?  I called as a potential customer and asked what the rates should have been for my class of service and in my zip code.  As expected they gave fantastic rates  but when I compared these to what I was charged  it was over by at least 3 cents per month.  They have told em that I was a delinquesnt account and then when I gave them my payment history  they then told me that it was because of variable pricing.  they keep making excuses for overcharging and then when presented with information to refute their calims they come up with another reason.  My next stop is the BBB and the NJ Board of Public Utilities

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#2 UPDATE Employee

Customer Issue Resolved

AUTHOR: U.S. Gas & Electric - (United States of America)

New Jersey Gas & Electric (NJG&E) has been in communications with the author of these postings.  During our conversation with this young lady, NJG&E explained verbally our program, pricing and answered all questions posted to us by this customer.  Additionally, NJG&E responded to these concerns in writing.  During our telephone conversation with this customer, she thanked us for our help and appeared to be satisfied.
NJG&E kindly requests, that for any concerns or questions regarding our products and pricing, customers contact our customer service department at (866) 568-0290 or
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#3 Author of original report

Not hard to understand!


Contrary to what the employee of the company posted, it is not hard to understand that rates are based on the open market.  I'd like to know though how this company can say that they aim to save money every month, but there may be months where they are more expensive.  When the company is charging rates of more than 30% higher than PSE&G's rates on gas and electricity for four straight months, that is thievery, not a market that is determining the costs for the company.  There is NO way that US Gas & Electric will consistently need to "guess" the market for 1/3 of a year and be off. If they are, it's time for new management who will be able to gage the market more correctly and price accordingly. 
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#4 UPDATE Employee

It's Easy to be Confused about Pricing in a Volatile Energy Market

AUTHOR: U.S. Gas & Electric - (United States of America)

We believe that the customer mentioned was a member of New Jersey Gas & Electrics (NJG&E) Variable-Rate Plan, designed to offer our best competitive rates based upon a monthly evaluation of several factors that affect rates on a monthly basis.  From month to month, there are many factors that can and do affect the actual rate for natural gas and electricity, which can both increase or decrease the actual rate paid by our customers. 

As is common knowledge, the cost of all energy rises and falls quite rapidly, so we have developed means to provide the best and fairest pricing that we possibly can.  To date, we have saved over 220,000 customers over $44 million dollars on their energy supply.  Plus there are rate components that are beyond our control, such as taxes and delivery charges that must be passed along based upon what they are at the time of billing.
To quote our terms and conditions for our Variable-Rate Plan for natural gas, the price for all natural gas sold under our Variable-Rate Plan is a rate set by us each month based on our evaluation of a number of factors that affect the total price to a customer.  The following description is not exhaustive of all factors that might influence our pricing decision each month, but it does describe the major components that influence our analysis in a typical month. 

Each month our management uses the information described below, along with numerous other considerations, to determine the price in the upcoming month.  We determine the cost (including, where applicable, storage costs, transportation costs and line losses) that we have already obtained for delivery to customers in your utility territory for the upcoming month.  Because we often acquire supply over time in preparation for future delivery needs and do not acquire all of our required gas from the spot market, our supply costs may not directly follow spot market prices. 

If additional supplies will be required for the upcoming month, we will determine the anticipated cost to acquire such additional supplies in the spot market.  If we expect to have surplus supply for the upcoming month, we evaluate the expected income we may receive from selling the surplus.  The rate assigned to any particular individual account may vary from the rate assigned to any other particular individual account, even though such accounts may be in the same utility rate class.  Also, the stated price does not include applicable taxes. 
Additionally, if this particular customer enrolled with us for electric supply, as stated in the terms and conditions The price for all energy sold under this Agreement shall be a rate calculated monthly based on the applicable PJM zonal wholesale electric, ancillary services, capacity and other costs associated with providing full requirements services to Customer. The monthly rate may be higher or lower than the utility price in any given month.  The rate assigned to any particular individual account may vary from the rate assigned to any other particular individual account, even though such accounts may be in the same utility rate class.
NJG&E takes pride in our competitive rates that we offer our customers and we strive to keep every customer satisfied with our services.  We would welcome the opportunity to conduct an account analysis, if this particular customer would like to contact us.  We can be contacted at: for complete assistance in reviewing the customers billing and any other concerns that they may have.  So while the original quoted rate may have been lower, rates can and do fluctuate month in and month out. 
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