Energy Bill Refunds Arrive For Some Hoboken Residents, Causing Confusion

HOBOKEN, NJ — After Hoboken residents reported getting high electric bills last month after being switched to a "green" provider, the city said there were billing errors and promised refunds — but the refunds have been small, said some residents who received them. READ MORE: Energy Supplier Overbilled Hoboken Residents: Officials

Last year, the city of Hoboken told residents a letter that "opting in" to their new, environmentally friendly energy program and shifting away from PSEG as a supplier would help the environment and possibly lower their bills.

But in early January, two members of the City Council said that bills rose higher than expected, and not just because the weather got colder.

Residents who "opted into" the program still have their billing handled by the original supplier —PSEG. The bills include a comparison of the amount charged by the new provider and what the customer would have paid if PSEG had supplied the energy.

The difference has been significant, some said.

"Did you get an exceptionally high PSEG bill this month and are opted into the city’s third-party renewable energy program?" Councilwoman Tiffanie Fisher asked in her newsletter last month. "I’ve heard from several neighbors who did—and I did as well. My bill was double the prior month, and I was away for half the month."

She broke the news that the supplier acknowledged billing errors in some accounts.

Ultimately, the city said that some residents would get refunds in the mail.

The checks have trickled in this week, but reactions were mixed.

First Ward Councilman Paul Presinzano noted on Monday that the city had said residents would receive a refund of an average of around $22. But he said there were residents who received refunds even though they opted out of the new program.

Presinzano said he got more than $100 in his refund, which he believed was fair.

He said perhaps the switch needs to be better explained to consumers in the future. They were all given the chance to opt out of the new supplier by sending in a postcard, but now must make calls, he noted.

"We. can't even people out to vote," he said. "How can they understand this?"

Residents who opted out may still be getting checks because there were billing errors in December 2023 as well, something the city announced late last month. "The city no longer uses Direct Energy & has called for an independent audit," the city said in a message.

Patch reached out to City Hall on Monday night to find out if residents should still expect to save money via the new program.

City spokesperson Marilyn Baer said, "Since its launch in 2022, the Hoboken Renewable Energy Program has saved participating residents over $972,000 and reduced 46,286 metric tons of greenhouse gas emissions. The program was designed to provide both a cost savings and reduce greenhouse gas emissions providing residents with more renewable energy compared to PSE&G."

Fixed Rate Vs. Variable

She added, "It’s important to note that while PSE&G’s rate fluctuates quarterly, the Hoboken Renewable Energy Program secured a fixed rate, which meant that at certain times, PSE&G’s rate may be lower, and at other times, it may be higher. However, in aggregate, the program has resulted in significant savings ... Additionally, PSE&G provides the amount a customer participating in the Hoboken Renewable Energy Program would have paid if they were on the utility’s Basic Generation Service (BGS) rate on each monthly bill. Residents can also view their individual savings through the program’s online web portal at www.hobokennj.gov/renewableenergy."

She said consumers still have choices: Under the new contract with IDT Services, participants now have access to 20 percent renewable energy, 100 percent renewable energy, and a basic offering — all at a lower rate than what PSE&G was offering at the time of auction thanks to favorable 2024 market conditions." The information can be found at www.hobokennj.gov/renewableenergy.

'Savings And A Cleaner Supply'

When asked about the high bills last month, Baer gave similar information and noted, "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 ... According to Direct Energy, the average overbilling was approximately $23."

Tiffanie Fisher said last month, "As a reminder, Hoboken’s Renewable Energy Program promises locked-in rates with IDT Energy through October 2026."

More Information

The city had advised residents who believe they were overbilled to contact Direct Energy 1-866-968-8065 or email aggregationsupport@NRG.com.

IDT Energy also has a contact form here.

See what the city said about the program last year here.

Read more about Hoboken's program here.