New Jersey Default Service Auction Produces Lower Prices for Mass Market Customers in Most Territories

The New Jersey BPU has posted results from the annual Basic Generation Service auctions, which establish the price for default service.

The 2013 Fixed Price auction, for one-third of the supply to serve default service customers under 500 kW for the three year period starting June 1, 2013, resulted in a closing price as follows (¢/kWh):

Atlantic City Electric:           8.727
Jersey Central Power & Light:     8.37
Public Service Electric & Gas:    9.218
Rockland Electric:                9.258

These prices will be blended with existing supplies procured in prior BGS auctions.

The BPU said that the new prices will result in about a 3% decrease in residential bills at JCPL, a 5% decrease at ACE and Rockland, and stable bills at PSE&G.

The lack of a decline in customer bills at PSE&G was attributed to increased transmission costs at PSE&G which are the responsibility of the wholesale supplier, or the customer's third party supplier.

For comparison, the rates being replaced in the BGS-FP portfolio can be found here (click for 2010 auction results)

The 2013 CIEP Auction, for customers over 500 kW on hourly service, resulted in a closing price ($/MW-day) as follows, which is added to hourly energy prices:

Atlantic City Electric:           265.33
Jersey Central Power & Light:     265
Public Service Electric & Gas:    269.29
Rockland Electric:                365