Electricity rates statewide poised for decreases
Starting June 1, electric bills should look a tad more bearable for New Jersey ratepayers.
The state Board of Public Utilities (BPU) announced today that their annual Basic Generation Service (BGS) auction brought a six-percent decrease in price from the cost reached a year ago.
It means a savings of about four dollars a month on average monthly bills for Jersey Central Power and Light (JCP&L) and Atlantic City Electric (ACE) ratepayers. Changes take effect June 1.
The auction for Residential and Small Commercial Pricing (RSCP) took place February 6-7, on the heels of the February 3-6 Commercial and Industrial Energy Price (CIEP) auction.
Winning RSCP bids were submitted by BPU Energy Company, Calpine Energy Services, DTE Energy Trading, Engelhart Commodities, Exelon, Macquarie Energy, NextEra Energy, Noble Americas Gas & Power, PSEG Energy Resources and TransCanada Power Markeiting.
Successful bidders in the CIEP auction were Conoco-Phillips, DTE Energy Trading,
Engelhart Commodities, Exelon, NextEra Energy marketing, and PSEG Energy Resources.
BPU President Richard Mroz said that it's the eighth straight year that bulk savings have been achieved, adding that the rate reductions provide incentive for the Board to approve infrastructure reliability improvement projects.
JCP&L seeks a reliability upgrade in the form of a high-voltage line, ostensibly running 10 miles above NJ Transit train tracks between Aberdeen and Red Bank. Company officials cite the need to meet increasing demand, but it has generated a wave of opposition by residents and elected officials.
JCP&L's bills drop 4.19 percent, or $4.07 per month for an average consumer. ACE rates decline 3.32 percent, or about $4.14 per month.
Public Service Electric & Gas customers can expect a decrease of 2.6 percent, or about $3 monthly. Rockland Electric subscriber rates are scheduled to decline 6.28 percent, or about $7.67 a month.
State regulators estimated that the energy secured through the auction will cover about one-third of the state's residential and small-business needs for the next three years. The remainder is coveredin the BGS auctions of 2015 and 2016. The supply obtained in the CEIP auction is expected to cover a year's worth of energy needs.
BPU officials pointed out that savings achieved through the auctions are passed on to consumers, and have no profit potential for utility companies.