Translator Disclaimers
Basic Generation Service (BGS)
Pursuant to the Electric Discount and Energy Competition Act of 1999 (Act), the local electric distribution companies ("EDCs" or "utilities") are obligated to provide basic generation service (BGS) until the Board determines that it is no longer necessary. BGS refers to the EDCs’ obligation to obtain and provide the supply of electricity for customers who do not switch to an alternative retail supplier, known as a Third Party Supplier. The Act requires that power procured for BGS by a utility be purchased at prices consistent with market conditions. The charges assessed to customers for BGS are regulated by NJBPU, and are based on the reasonable and prudent cost to the utility of providing the service, including the cost of power purchased at prices consistent with market conditions by the utility in the competitive wholesale marketplace, and related transmission, capacity, ancillary, and administrative costs as determined by the Board.

BGS Procurement Proceeding
Each year the Board initiates a proceeding that directs the EDCs, and invites interested parties, to file proposals by July to determine how to procure supply to meet BGS load for the next year. To implement the review process, a procedural schedule is developed to address the proposals, including an opportunity for the issuance of discovery, and submission of written and oral comments. Based on the record developed in this proceeding, the Board makes a decision as to which type of procurement process will be used for BGS. Anyone wishing to provide written comments during a BGS proceeding or to receive BGS information may subscribe to the BGS E-Service List by emailing Stacy Peterson at stacy.peterson@bpu.nj.gov or Ryan Moran at ryan.moran@bpu.nj.gov with "Subscribe to BGS E-Service List” in the subject line.

2022 BGS Procurement Process
By prior Board Orders in Docket No. ER19040428 dated November 13, 2019 and Docket No. ER20030190 dated November 18, 2020, which approved, with modifications, the joint Basic Generation Service (“BGS”) proposals of the State’s Electric Distribution Companies (“EDCs”) -- Atlantic City Electric Company (“ACE”), Jersey Central Power & Light Company (“JCP&L”), Public Service Electric and Gas Company (“PSE&G”) and Rockland Electric Company (“Rockland”) -- that used a descending clock auction format to procure two-thirds of the State’s BGS requirements for Residential and Small Commercial Pricing (“RSCP”) customers for the period beginning June 1, 2022 and ending May 31, 2023.  In those prior Orders, the Board did not address how the remaining BGS requirements for RSCP customers, as well as the State’s annual BGS requirements for Commercial and Industrial Energy Pricing (“CIEP”) customers, would be procured for the period beginning June 1, 2022.

 

The Board has initiated a proceeding using the following procedural schedule directing the EDCs to file proposals no later than July 1, 2021, addressing how to procure the remaining one-third of the state’s BGS-RSCP requirements and the annual CIEP requirements for the period beginning June 1, 2022.  In addition, the Board also invites all other interested stakeholders to file alternative BGS proposals with the Board by July 1, 2021.

 

2022 BGS Schedule

Date

Activity or Decision Point

7/01/2021

Filing of Proposals and/or Modifications
for BGS for the period beginning June 1, 2022

7/22/2021

Discovery request deadline

8/5/2021

Discovery response deadline

TBA

Public Hearings*

9/3/2021

Deadline for Initial Comments on all proposals

TBA

Legislative-Type Hearing*

10/5/2021

Deadline for Final Comments**

Nov. 2021 Expected Board decision on BGS proposals
Dec. 2021 EDC Compliance Filings
Dec. 2021 Expected Board decision on Compliance Filings
Feb. 2022 Procurement Process for BGS Supply requirements


*
 This is a placeholder for the Legislative-type Hearing and the Public Hearings (for the public hearings the time and place will be scheduled by the EDCs in conjunction with NJBPU), as required.

** Final Comments should only be used to respond to issues raised either in the Initial Comments, or at the Legislative-type Hearing. They should not be used to raise new issues in this proceeding.