On Thursday, the New Jersey Board of Public Utilities approved the results of the 18th annual electricity auction for Basic Generation Service (BGS) for the twelve-month period, beginning June 1.
The auction stabilizes energy costs for electricity provided to residents and small- or medium-sized businesses by the New Jersey Electric Distribution Companies (EDCs), which include Public Service Electric & Gas Co., Jersey Central Power & Light Co., Rockland Electric Co. and Atlantic City Electric Co.
According to the BPU, winning prices for each of the EDCs increased between 2.4 percent and 7.6 percent compared to 2018’s auction. Since these winning contracts will replace slightly more expensive ones from three years ago, however, the average basic generation service bill will remain relatively unchanged.
Residential PSE&G customers can expect their bills to increase by an average 0.3 percent, JCP&L’s will see an average decrease of 2.2 percent, ACE customers will see an average increase of 0.8 percent and RECO customers will see an average decrease of 0.5 percent.
“The weighted average energy cost is based upon the results from the last three auctions,” NJBPU President Joseph Fiordaliso said in a prepared statement. “As a result, in 2019, the BGS ratepayer will experience stable energy costs.”
The winning bids for the RSCP Auction were: BP Energy Co., Calpine Energy Services LP, Covanta Energy Marketing LLC, DTE Energy Trading Inc., Exelon Generation Co. LLC, Hartree Partners LP, NextEra Energy Marketing LLC and PSEG Energy Resources & Trade LLC.
Two separate descending clock auctions were conducted by NERA Economic Consulting from Feb. 1 to Feb. 5. The Commercial and Industrial Energy Price service auction for large commercial and industrial customers took place from Feb. 1 through Feb. 4 and the Residential and Small Commercial Pricing auction took place from Feb. 4 to Feb. 5.
Together the auctions covered commitments for up to about $6 billion worth of purchases.
The BGS-CIEP Auction winners were: ConocoPhillips Co., DTE Energy Trading Inc., Exelon Generation Co. LLC, Hartree Partners LP and PSEG Energy Resources & Trade LLC.