On June 5, 2024, the New Jersey Board of Public Utilities (NJBPU) approved the results of the State’s 23rd annual electricity auction for Basic Generation Service (BGS). This approval will result in slightly higher costs for electricity supplied to most residents and small to medium-sized businesses by Atlantic City Electric Company (ACE), Jersey Central Power & Light Company (JCP&L), Public Service Electric & Gas Company (PSE&G), and Rockland Electric Company (RECO). These companies are collectively known as the New Jersey Electric Distribution Companies (EDCs).
“The average bill is based, in part, upon the results from the last three BGS auctions. As a result, in 2024, BGS ratepayers will experience a moderate increase in energy costs,” said Christine Guhl-Sadovy, President of the NJBPU. “Our primary goal remains to do what is in the best interest of ratepayers across New Jersey.”
The BGS auction determines part of the cost of electricity for most New Jersey residents and many businesses for a 12-month period starting June 1, 2024. Winning prices for all four EDCs increased compared to last year’s auction due to higher energy costs and risks associated with providing a fixed-price product. The average monthly BGS residential ratepayer bill is expected to increase between 3.6% and 8.6%. Specifically:
- PSE&G customers will see an average estimated bill increase of 6.2%.
- JCP&L customers will see an average estimated bill increase of 8.6%.
- ACE customers will see an average estimated bill increase of 4.8%.
- RECO customers will see an average estimated bill increase of 3.6%.
The following table illustrates how these changes affect electricity supply costs for an average residential customer starting June 1, 2024:
| EDC | Usage (kWh) | Current Bill | Increase/Decrease | New Bill | Percent Change |
|-------|-------------|--------------|-------------------|----------|----------------|
| ACE | 650 | $154.28 | $7.34 | $161.62 | +4.8% |
| JCP&L | 650 | $96.59 | $8.34 | $104.93 | +8.6% |
| PSE&G | 650 | $131.90 | $8.22 | $140.12 | +6.2% |
| RECO | 650 | $131.90 | $4.71 | $135.57 | +3.6% |
The Board's approval covers two separate descending clock auctions conducted by NERA Economic Consulting from February 2 through February 6:
- The Commercial and Industrial Energy Price (CIEP) service auction was held on February 2.
- The Residential Small Commercial Pricing (RSCP) service auction took place on February5 and February6.
Both auctions secured commitments for approximately8,131 megawatts(MWs)of customer requirements.
The RSCP auction secures one-third of the State’s residential and small business electric load requirements for three years starting June1,2024.The remaining two-thirds will be met by supply secured in previous auctions held in2022and2023.The CIEP auction secures supply for one year.
For CIEP ratepayers,the prices have increased compared to last year,due primarily to costs associated with PJM’s Reliability Pricing Model(RPM)Auction,and meeting the State Renewable Portfolio Standard(RPS).Approximately82%of CIEP load is currently provided through individual contracts with third-party suppliers negotiated competitively.
BGS-RSCP36-Month Tranches:
| EDC
Closing Price(cents/Kwh)
Total Tranches
ACE
8 .14
27
JCP&L
8 .29
20
PSE&G
8 .08
29
RECO
8 .55
1
BGS-CIEP1-year Tranches:
EDC Closing Price$/Mw-day Total Tranches
ACE370 .86
4
JCP&L357 .14
12
PSE&G378 .21
21
RECO300 .84
1
Winning bidders include Axpo U.S.LLC,BPEnergyCompany,CalpineEnergyServices,L.P.,ConocoPhillipsCompany,DTEEnergyTradingInc.,and others.For CIEPAuction,winners include BostonEnergyTradingandMarketingLLC,and NextEraEnergyMarketingLLC.A complete list can be found at www.nj.gov/bpu.
About NJBPU:NJBPUis state agency ensuring safe utility services at reasonable rates.Critical services regulated include natural gas,electricity water,wastewater telecommunications,cable television.The Board oversees utility service monitors complaints investigates accidents.More info:www.nj.gov/bpu.
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