Translator Disclaimers
Basic Generation Service (BGS)
Pursuant to the Electric Discount and Energy Competition Act of 1999 (Act), the local electric distribution companies ("EDCs") 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, 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 1 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 Ryan Moran at ryan.moran@bpu.nj.gov with "Subscribe to BGS E-Service List” in the subject line.

2023 BGS Procurement Process
By prior Board Orders in Docket No. ER20030190 dated November 18, 2020 and Docket No. ER21030631 dated November 17, 2021, which approved, with modifications, the joint Basic Generation Service (“BGS”) proposals of the State’s 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, 2023 and ending May 31, 2024.  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, 2023.

 

The Board has initiated a proceeding using the following procedural schedule directing the EDCs to file proposals no later than July 1, 2022, addressing how to procure the remaining one-third of the state’s BGS-RSCP requirements and the annual BGS-CIEP requirements for the period beginning June 1, 2023.  In addition, the Board also invites all other interested stakeholders to file alternative BGS proposals with the Board by July 1, 2022.

 

2023 BGS Schedule

 

DATE

Activity or Decision Point

7/01/2022

Filing of Proposals and/or Modifications for BGS for the period beginning June 1, 2023

7/22/2022

Discovery request deadline

8/5/2022

Discovery response deadline

9/2/2022

Deadline for Initial Comments on all proposals

TBA

Legislative-type Hearing*

TBA

Public Hearings*

10/11/2022

Deadline for Final Comments**

Nov. 2022

Expected Board decision on BGS proposals

Dec 2022

EDC Compliance Filings

Dec. 2022

Feb. 2023

Expected Board decision on Compliance Filings

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 the BPU), 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.