Paterson's Power Rides on PSE&G Lines — Its Supply Rate Doesn't Have To
Paterson is inside PSE&G's electric and gas service territory. Under New Jersey's BGS auction, BPU-licensed Third-Party Suppliers can replace PSE&G's default supply rate through NJ Power Switch while PSE&G stays the delivery utility on every bill.
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Switch Both Electric + Gas in Paterson — Save $140+/year
Paterson is in a dual fuel deregulated state. You can switch both your electricity AND natural gas provider. Most customers who switch both save $140 or more per year.
About Energy Choice in Paterson
Paterson — New Jersey's third-largest city and America's first planned industrial city — is served on both electric and gas by PSE&G. The wires that once powered the Great Falls silk mills now feed a dense mix of multi-family housing across Downtown, the 1st and 6th Wards and out toward Totowa Road. PSE&G's role hasn't changed since deregulation: it delivers the electrons and the gas; the supply line on the bill is where competition lives.
New Jersey procures default electric supply through the Basic Generation Service auction under BPU oversight. The BGS clearing price becomes PSE&G's Price to Compare — that's the anchor point every Third-Party Supplier offer on NJ Power Switch has to beat to save a Paterson household money over the full term of the contract.
Rate volatility isn't just theoretical here. When BGS resets each June, unshopped Paterson accounts feel the move on the next meter read; households that locked a fixed TPS contract stay flat until their term ends. That predictability is worth more in a market like Paterson's, where a lot of stock is small multi-family with limited weatherization and high summer AC load.
PSE&G is also Paterson's gas utility. New Jersey allows Choice on gas as well, so residents who want to shop both commodities are managing two independent contracts on the same PSE&G bill.
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Frequently Asked Questions
Who delivers electricity to Paterson?
PSE&G is the electric distribution utility for Paterson and Passaic County. PSE&G continues to own the wires, read the meter and respond to outages after you switch to a Third-Party Supplier — only the generation line on the bill changes.
How is Paterson's default supply rate set?
Through New Jersey's Basic Generation Service auction, held annually under NJ Board of Public Utilities supervision. The clearing price becomes PSE&G's default supply rate — the number a competitive offer on NJ Power Switch has to beat.
Does PSE&G also handle gas in Paterson?
Yes. PSE&G is a dual-fuel utility for the City of Paterson, delivering both electricity and natural gas. Gas supply can be shopped separately from electric supply under New Jersey's Choice program.
Will an outage in Paterson be restored differently if I switch?
No. PSE&G handles every Paterson outage regardless of supplier. Report outages directly to PSE&G; Third-Party Supplier choice has no effect on restoration priority or crew dispatch.
How often should Paterson residents check rates?
At minimum, check NJ Power Switch each June around the BGS reset and again about 45 days before an existing fixed TPS contract ends, so you can lock a new rate before rolling onto a variable one.