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Are the Direct Energy Refunds Legit? We Asked the City of Hoboken + PSEG
Early spring sun is thawing much of Hoboken, but the impacts of a cold winter are still being felt by several residents around town. Well, for some, it wasn’t even the effects of a cold winter; it was simply being overcharged by their electricity provider. At the start of 2025, locals were overcharged due to a billing error from a previous electricity provider. Now, The Hoboken Girl learned residents in Hoboken and the rest of New Jersey should expect higher energy bills this summer. Read on to learn about what’s behind the increase in costs and how to make sure your bills are calculated correctly.
The Hoboken Renewable Energy Program
City Hall previously shared that The Hoboken Renewable Energy Program would help the environment, and possibly lower energy costs for residents. It’s part of the City’s goal of reaching net-zero energy by 2030, as established by Hoboken’s Climate Action Plan. Through this program, PSE&G still distributes electricity to Hoboken customers, but residents buy the electricity supply through the Renewable Energy Program. Residents have the option to choose to have 100% of their electricity derived from renewable sources.
As of the last electricity auction on August 21st, 2024, Hoboken reported the Standard Offering of 20% additional renewable energy was less expensive than the Basic Generation Service with PSE&G by 2.56 cents/kWh. That does not include the additional 20% of renewable energy. According to the City’s findings, the average resident enrolled in the Standard Offering program would be paying about $12 less per month. However, prices are subject to change.
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This program started in March 2022. A contract with IDT Energy was signed and the new contract term begins with residents’ meter reads in December 2024 and ends with meter reads after October 2026, per the program’s website. Hoboken residents can opt in or out of the program online, or even switch between the different renewable energy options available through the program.
With this program, Hoboken created a so-called buying pool for electricity suppliers. Through this buying pool, residents could get lower energy supply prices from a third-party supplier compared to what PSE&G currently charges. The only change the resident sees is with the monthly bill. There is no change in service and PSE&G continues to, “provide electricity through the same wires, maintain the energy infrastructure, and respond to emergencies.”
Billing Issues
In January 2025, members of Hoboken City Council shared they received several complaints from locals about high energy bills. Clean energy provider IDT Energy has just started providing services to Hoboken residents beginning with meter reads in December 2024. The contract with IDT Energy ends with meter reads after October 2026.
“Hoboken Residents have reached out about super high bills from 3rd party electric suppliers,” Councilman Paul Presinzano shared on Threads on January 13th, 2025. The image showed a bill that compared the $299.85 cost to the PSE&G cost that would be $206.76.
In a newsletter posted on January 15th, 2025, Councilwoman Tiffanie Fisher asked if anyone who opted into Hoboken’s third-party renewable energy program got a high PSE&G bill. Tiffanie found many residents were charged higher rates, up to 21.5 cents/kWh or more, despite being enrolled in the plan with locked-in rates.
“IDT Energy attributed this to a ‘system error’ and so far is issuing refunds by check to those who have reached out,” Tiffanie writes. “Some residents previously on Direct Energy (the prior supplier) weren’t switched to IDT Energy, leaving them charged at Direct Energy’s higher rates. Others who opted into the Basic Plan were incorrectly charged Standard Plan rates or higher.”
A spokesperson for the City of Hoboken told Patch Hoboken, "The city recently became aware of December overbilling of certain residents during the transition period from Direct Energy to our new clean energy provider IDT Energy Services. Direct Energy, the City's previous energy provider, is conducting an audit, contacting affected residents via letter, and issuing refunds to any residents who were affected by the end of the month. According to Direct Energy, the average overbilling was approximately $23. Residents will not be contacted by phone, email, or in person and will only be contacted via letter. If you believe your account was overbilled, please contact Direct Energy 1-866-968-8065 or email aggregationsupport@NRG.com."
HG received a statement from the City of Hoboken, saying “The City is aware of previous concerns regarding energy bills…Direct Energy, the City’s old energy provider, has already issued refund checks following a previous billing error that was since resolved.”
Energy Supply Costs Increasing in 2025
While some receive billing errors at the start of 2025, energy costs could be going up for the entire state of New Jersey later this year. On February 12th, 2025, the State Board of Public Utilities announced the results of the State’s 24th annual electricity auction for Basic Generation Service (BGS). It will result in higher costs for electricity supplied to “most residents and small and/or medium-sized businesses” by NJ’s four regulated Electric Distribution Companies (EDCs). Those four companies are Atlantic City Electric, JCP&L, PSE&G, and Rockland Electric Company. The annual auction determines the cost of electricity for most New Jersey residents and many businesses for a year-long period starting June 1st, 2025, per the State.
Starting in June 2025, the average monthly energy bill is projected to increase between 17% and 20% depending on the service area, according to the Board of Public Utilities. In the press release, the NJBPU shared: “The state’s four regulated EDCs do not earn a profit on the cost of the electric supply secured in the auctions. These costs are passed through directly to ratepayers.” The breakdown of those costs can be found online.
“While energy prices are rising statewide, Hoboken residents enrolled in the City’s Renewable Energy Program continue to benefit from stable, lower rates,” said Marilyn Baer, a spokeswoman for the City of Hoboken. “The City’s current program, now with IDT Energy, currently provides approximately an 18% savings on supply costs for those enrolled in the Standard Offering. Additionally, the program’s rate is fixed through October 2026, ensuring long-term price stability for residents.”
A spokesperson for PSE&G told HG, “We work hard to keep customer bills as low as possible while providing safe, reliable affordable energy. For example, we manage project costs, negotiate to get the best available price on goods and services, and plan in advance to pay for future needs at today’s prices.”
How To Make Sure Your Energy Bills Are Correct
If you are a PSE&G customer and notice your energy bills are higher than normal, contact PSE&G. You can call 1-800-436-PSEG (7734), log into your account online, visit a customer service center, or visit the website pseg.com.
When it comes to saving energy, there are a few ways to get started. Sealing doors and windows, covering window air conditioning units when not in use, and using a smart thermostat are some of the ways PSE&G suggests saving energy. The company also has home energy assessments, rebates, and discounts to help its customers save both energy and money.
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