N.J. BPU Announces BGS Auction Results

The New Jersey BPU approved results of the Basic Generation Service auction for 1/3 of supplies for BGS fixed priced customers for the three-year period starting June 1, 2011, and 100% of supplies for BGS Commercial and Industrial Energy Price (CIEP) customers for the one-year period starting June 1, 2011.

The average price obtained in this year's Fixed Price auction (9.528¢/kWh) was lower than the average obtained in last year's auction (9.607¢/kWh), and was significantly lower than the electricity procured in the 2008 auction (11.328¢/kWh), which will be replaced in the blended portfolio by supplies from this year's auction.

Specific clearing prices from the 2011 Fixed Price auction are below:

BGS-FP 36-Month Tranches
Utility Closing Price (¢/kWh) Total Tranches Sold
Atlantic City Electric 10.095 8
JCP&L 9.256 15
PSE&G 9.43 28
Rockland Electric 10.684 2

One tranche equals approximately 100 MW

Clearing prices for the 12-month CIEP tranches are below. These capacity prices are added to hourly LMPs and other charges to determine the actually hourly default service rate:

BGS-CIEP 12-Month Tranches
Utility Closing Price (($/MW-day) Total Tranches Sold
Atlantic City Electric $114.73 5
JCP&L $120.01 14
PSE&G $116.47 26
Rockland Electric $128.94 1

One tranche equals approximately 75 MW

The winning prices obtained in this year's CIEP auction declined about 30% from last year across all utilities.

The winning bidders of the Fixed Price auction were:
ConocoPhillips Company
Constellation Energy Commodities Group, Inc.
DTE Energy Trading, Inc.
Exelon Generation Company, LLC
NRG Power Marketing LLC
NextEra Energy Power Marketing, LLC
PSEG Energy Resources and Trade LLC
TransCanada Power Marketing Ltd.

The BGS-CIEP Auction winners were:
ConocoPhillips Company
Consolidated Edison Energy, Inc.
Constellation Energy Commodities Group, Inc.
DTE Energy Trading, Inc.
Dominion Retail, Inc.
NextEra Energy Power Marketing, LLC