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Understanding Your PSE&G Energy Bill*

Want to better understand your energy bill? Here's a detailed explanation of how we calculate electricity costs.

Electric Service

Applicable Rate Schedules and Descriptions:

  • Residential Service (RS): Delivery service for residential purposes.
  • Residential Heating Service (RHS): This rate schedule is closed and in the process of elimination. RHS delivery service is limited to residential purposes where electricity is the sole source of space heating for customers. This service is only available for customers at their current premises that are presently served under this rate schedule.
  • Residential Load Management Service (RLM): “Time-of-day” residential delivery service. The distribution rate varies between “peak” and “off-peak” hours and by season.
  • Water Heating Storage Service (WHS): Delivery service for controlled water heating storage.
  • Water Heating Service (WH): Delivery service for controlled water heating. This rate schedule is closed and is in the process of elimination. WH service is limited to premises that are presently served under this rate schedule.

Explanation of Charges:

  • Delivery Charge: The charge for delivering electricity to homes and businesses including the cost of government-mandated programs designed to achieve public policy goals, such as energy conservation. Refer to the Tariff for Electric Service for more details.

    PSE&G will continue to deliver electricity to its customers and is still the company that customers call if they have problems with their service.
  • Supply Charge: The charge for generation, including the cost of the transmission from generation facilities to the local distribution system.
  • Third Party Supply: A customer may choose to receive electric supply from PSE&G or a third party supplier. A customer who receives electric supply from a third party supplier will not have to pay the Basic Generation Service Charges (BGS) to PSE&G. The price to compare per kilowatthour for PSE&G’s BGS Charges for residential customers, by rate schedule, is indicated in the table on the preceding page.

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Gas Service 

Applicable Rate Schedules and Descriptions: 

  • Residential Service (RSG): Delivery service for residential purposes. Customers can purchase gas supply from a third party supplier or from PSE&G’s Basic Gas Supply Service default service.
  • Commodity Charge (BGSS-RSG): Basic Gas Supply Service default service provided by PSE&G for residential customers served under Rate Schedule RSG. The BGSS-RSG rate may change periodically. See the tariff for the latest rate.


Explanation of Charges:

  • Delivery Charges: The sum of the Service Charge, Distribution Charge and Balancing Charge (when applicable - see Balancing Charge).
  • Service Charge: A fixed monthly charge that includes the cost to maintain an account for a customer, including metering and billing.
  • Distribution Charge: The charge for using PSE&G’s gas distribution system for delivery of natural gas to a customer’s home. The cost of government-mandated programs and certain net revenue credits are included.
  • Balancing Charge: Shown here are the charges for both balancing and weather normalization that are applied from November through March only. The Balancing charge is for using PSE&G’s storage system to adjust for the differences between the amount of gas delivered for a customer on a daily basis versus the amount of gas used by a customer on a daily basis. The Weather Normalization Charge can be either a credit or a charge.
  • Supply Charges: Charges associated with the cost of natural gas. Refer to PSE&G Web site for current charge.
  • Commodity Charge: The charge for the natural gas supply that was delivered to a customer’s home.
  • Price to Compare: Calculated using a customer’s natural gas usage and the cost per therm for that gas. This number is useful in helping a customer compare offers from third party suppliers.

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Other Services and Charges 

  • Statement of Energy Use: A statement of energy use by billing period for the last 25 months of use is available on request. An 18 calendar-month summary of degree-day data is also available. (The degree-day is a measurement of heating requirements. The higher the number of degree days, the more energy will be required to heat your home to a comfortable temperature).
  • Purchased Electric Power Payment Schedule (PEP): Under certain conditions, PSE&G will purchase electric energy produced by small power producers. For additional information write to: Manager- Non-Utility Generation, PSE&G -T8, P.O. Box 570, Newark, NJ 07101.
  • Board of Public Utilities (BPU) Assistance: PSE&G is subject to the jurisdiction of the New Jersey Board of Public Utilities, 2 Gateway Center, Newark, NJ 07102. (973) 648-2350 or (800) 624-0241. You may contact the BPU to request assistance in the resolution of a disputed bill.
  • Returned Check Charge: Returned check charges are subject to a $15.00 return check charge.
  • Notice to Tenant Customers of PSE&G: The BPU regulations state that a tenant customer may not be billed or have their service disconnected for failure to pay for electric and or gas service, which was diverted outside their premises without their permission. If you are a renter and you suspect that your utility bill is unexpectedly high, possibly due to a diversion of service, you should notify PSE&G immediately by calling 1-800-436-PSEG (7734).

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Payment Assistance Programs 

Please visit for detailed payment assistance information.

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Note to Residential Customers 

*This information is provided as a summary of the charges that may be applicable to you as a customer of PSE&G and it is not intended to be a substitute for the PSE&G Tariff for Electric Service and/or its Tariff for Gas Service, both of which are on file with the New Jersey Board of Public Utilities. 

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