Power supplies have an efficiency curve. Here's a sample from 450w and 850w versions of the same unit:
Consider for a moment that the system in my signature idles around 30 watts and draws about 160w under torture testing (from the wall). At these low numbers, the efficiency difference between a low and high wattage unit might add up (just ballparking here) to around $1-2 per month if you leave your PC on all the time, or ~$10-25 per year in electricity. Considering I've had my machine for 5 years, an oversized unit could have cost me as much as $125 in electricity at the very highest end estimate.
EDIT: The Platinum-rated unit I'm using cost me $25 after rebate, and...