New Jersey Reports BGS (Default Service) Auction Prices
February 8, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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The New Jersey BPU has approved the 2019 procurement of contracts for one-third of the fixed price Basic Generation Service (BGS) default electric service
Compared to the 2018 auction, winning prices for the fixed price auction for each of the four EDCs increased between 2.4% and 7.6% compared to last year’s auction.
The BPU said, "However, due in part to the fact that winning contracts are, for the most part, replacing older, slightly more expensive contracts from three years ago, the average monthly BGS residential ratepayer bill will remain relatively unchanged."
For Fixed Price customers (below 500 kW), the 2019 BGS auction procured 36-month tranches for the period starting June 1, 2019, with pricing as follows:
Final fixed price BGS rates will reflect a blend of the above prices and prices from the two prior BGS auctions, under a blending process. The energy secured in the fixed-price auction will meet one-third of the state's residential and small business electric load requirements for the next three energy years, starting June 1, 2019. The remaining two-thirds of customer supply requirements for the 12-month time period beginning June 1, 2019 will be met by electric supply secured in the BGS auctions of 2017 and 2018.
For CIEP ratepayers, when compared to last year, the prices for all EDCs are either stable or lower. As of December 2018, approximately 83% of the CIEP load is being provided through individual contracts with third-party suppliers.