Newsroom & Public Notices
New Jersey Board of Public Utilities Approves 2024 Electricity Auction Results
| For Immediate Release: | Contact: Tracy Munford |
| Date: 02/9/2024 | 609-940-1099 |
“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, in part, 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 mainly due to higher energy costs and the risk of providing a fixed-price product. The average monthly BGS residential ratepayer bill is expected to increase for most customers. The average monthly bill will increase anywhere from 3.6% to 8.6%. Specifically, ratepayers supplied by PSE&G will see an average estimated bill increase of 6.2%, ratepayers supplied by JCP&L will see an average estimated bill increase of 8.6%, ratepayers supplied by ACE will see an average estimated bill increase of 4.8%, and ratepayers supplied by RECO will see average estimated bill increase of 3.6%.
The following table illustrates how the auction results will affect electricity supply costs for the average residential customer when the new rates take effect on June 1, 2024:
Monthly Impact of BGS Auction on Average Residential Accounts
|
EDC |
Usage (kWh) |
Current Bill |
Increase or 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 of the BGS results covers two separate descending clock auctions conducted by NERA Economic Consulting beginning February 2 and ending February 6. The auction for Commercial and Industrial Energy Price (CIEP) service for large commercial and industrial customers was conducted on February 2, and the auction for RSCP service for residential and small- to medium-sized commercial customers was conducted on February 5and February 6. Both auctions secured commitments for approximately 8,131 megawatts (MWs) of customer requirements.
The energy secured in the RSCP auction will meet one-third of the State’s residential and small business electric load requirements for the next three energy years, starting June 1, 2024. The remaining two-thirds of customer supply requirements for the 12-month time period beginning June 1, 2024 will be met by electric supply secured in the BGS Auctions held in 2022 and 2023. The supply acquired through the CIEP auction is for one year. The state’s four regulated EDCs do not earn a profit on the cost of the electric supply secured in the auctions. These costs are passed through directly to ratepayers.
For CIEP ratepayers, when compared to last year, the prices for all EDCs are higher. The CIEP price is primarily driven by the cost of electric generating capacity from PJM’s Reliability Pricing Model (RPM) Auction and the cost of meeting the State Renewable Portfolio Standard (RPS). The CIEP price constitutes only a small portion of monthly bills of CIEP customers for the period from June 1, 2024 to May 31, 2025.
The CIEP product is a full requirements product. The energy portion of the product is priced at the spot price of energy. The price in the auction is meant to cover the costs of capacity and meeting the State RPS. As of December 2023, approximately 82% of the CIEP load is being provided through individual contracts with third-party suppliers. These contracts are negotiated in the competitive marketplace and are not affected by the CIEP auction results.
BGS-RSCP 36-Month Tranches:
|
EDC |
Closing Price (cents/Kwh) |
Total Tranches |
|
ACE |
8.142 |
7 |
|
JCP&L |
8.295 |
20 |
|
PSE&G |
8.088 |
29 |
|
RECO |
8.555 |
1 |
BGS-CIEP 1-year Tranches:
|
EDC |
Closing Price $/Mw-day |
Total Tranches |
|
ACE |
370.86 |
4 |
|
JCP&L |
357.14 |
12 |
|
PSE&G |
378.21 |
21 |
|
RECO |
300.84 |
1 |
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 |
About the New Jersey Board of Public Utilities (NJBPU)
NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.
