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New Jersey Mass Market Default Service Auction Prices Spike 20-25% Versus Replaced Supply

February 12, 2026

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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com

Winning prices from New Jersey's electricity Basic Generation Service auction for residential and small commercial customers (BGS-RSCP) spiked about 20-25% versus the tranches being replaced in the laddered portfolio

However, compared to the year-ago auction prices, most utilities, including JCPL and PSE&G, saw 2026 prices only a few mills per kWh higher than the 2025 prices

The New Jersey BPU released the results of the 2026 BGS auction today

The BPU credited the PJM capacity market price collar for the relatively flat BGS auction prices versus the year-ago

For fixed price residential and small commercial customers (BGS-RSCP), the 2026 BGS auction procured 36-month tranches for the period starting June 1, 2026, with pricing as follows:

2026 BGS-RSCP Auction Prices
 36-Month Tranches 
 
Utility     Closing Price    Tranches
              (¢/kWh)        Procured
ACE            11.275           8
JCP&L          11.327          15
PSE&G          10.938          28
RECO           12.057           2

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 supplies from the 2026 fixed-price auction will meet one-third of residential and small business default service load for the next three delivery years, starting June 1, 2026.

For comparison, the 2023 auction results, whose tranches are being replaced, are below:

2023 BGS-RSCP Auction Prices
(Contracts End May 31, 2026)
 36-Month Tranches 

Utility     Closing Price    Tranches
              (¢/kWh)        Procured
ACE            9.217            8
JCP&L          9.428           15
PSE&G          9.311           28
RECO           9.648            2

The BPU said that, on a total bill basis, the average JCPL residential customer would see a 1.6% increase in the total bill as a result of the 2026 auction, while the average PSE&G residential customer would see a 1.8% decrease in the total bill as a result of the 2026 auction. The BPU said in a news release that these percentage changes in the average residential bill are, "before credits or offsets are applied," which have been ordered in response to a prior executive order from the state's governor

The BPU also approved results from the CIEP auction (hourly priced customers)

The winning prices for the CIEP auction were as follows:

CIEP Auction 2026 Prices
Utility       Closing Price   Tranches
               ($/Mw-day)     Procured
ACE              673.68           2
JCP&L            680.00           9
PSE&G            677.73          24
RECO             597.67           1

The winning bidders in the Residential and Small Commercial Pricing (RSCP) Auction were:

Axpo U.S. LLC 
BP Energy Company 
Citigroup Energy Inc. 
ConocoPhillips Company 
Constellation Energy Generation, LLC 
DTE Energy Trading Inc. 
Engelhart CTP (US) LLC 
Five Elements Energy II LLC 
Hartree Partners, L.P. 
Macquarie Energy, LLC 
NextEra Energy Marketing, LLC 
Shell Energy North America (US) L.P. 

The BGS-CIEP Auction winners were:

BP Energy Company 
ConocoPhillips Company 
Constellation Energy Generation LLC 
DTE Energy Trading Inc.  
Engelhart CTP (US) LLC 
Five Elements Energy II LLC 
Hartree Partners LP 

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