New Jersey BGS Default Service Rates To Increase Based On Auction Results -- EnergyChoiceMatters.com

New Jersey BGS Default Service Rates To Increase Based On Auction Results

February 8, 2024

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Basic Generation Service (BGS) electricity customers will experience a "moderate increase" in their electricity costs based on the results of the 2024 BGS auction, the New Jersey BPU said in approving the auction results

For fixed price residential and small commercial customers (BGS-RSCP), the BPU said, "Winning prices for all four EDCs increased compared to last year’s auction [sic, ECM's review indicates 2024 prices were lower than last year, but higher than the contracts from 2021 being replaced] mainly due to higher energy costs and the risk of providing a fixed-price product."

For fixed price residential and small commercial customers (BGS-RSCP), the 2024 BGS auction procured 36-month tranches for the period starting June 1, 2024, with pricing as follows:

2024 BGS-RSCP Auction Prices
 36-Month Tranches 

Utility     Closing Price    Tranches
              (¢/kWh)        Procured
ACE            8.142            7
JCP&L          8.295           20
PSE&G          8.088           29
RECO           8.555            1

In the 2021 auction, whose contracts are being replaced, winning RSCP prices were generally about 6.5 cents per kWh.

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

For CIEP customers, when compared to last year, the prices for all EDCs are higher.

The winning prices for the CIEP auction was as follows:

CIEP Auction 2024 Prices
Utility       Closing Price   Tranches
               ($/Mw-day)     Procured
ACE              370.86           4
JCP&L            357.14          12
PSE&G            378.21          21
RECO             300.84           1

As of December 2023, approximately 82% of the CIEP load is being provided through individual contracts with third-party suppliers.

The winning bidders of the Residential and Small Commercial Pricing (RSCP) Auction are:

Axpo U.S. LLC

BP Energy Company

Calpine Energy Services, L.P.

ConocoPhillips Company

Constellation Energy Generation, LLC

DTE Energy Trading, Inc.

DXT Commodities North America Inc.

Five Elements Energy II LLC

Hartree Partners, LP

Macquarie Energy LLC

NextEra Energy Marketing, LLC

Shell Energy North America (US), L.P.

Vitol Inc.

The BGS-CIEP Auction winners are:

Boston Energy Trading and Marketing LLC

ConocoPhillips Company

Constellation Energy Generation LLC

DTE Energy Trading Inc.

NextEra Energy Marketing LLC

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