New Jersey market structure

New Jersey’s Basic Generation Service (BGS) is default-based electric generation and serves two types of customers. Small and midsize customers are served with fixed-price rates (BGS-FP), and commercial and industrial customers are served with market-based rates (BGS-CIEP).

Electricity rate caps were removed by the New Jersey Board of Public Utilities (BPU) in August 2003, leaving non-residential utility customers on default service with hour rates determined by power prices.

Non-residential utility customers with usage less than 1,000 kW currently receive fixed electric generation prices determined by the NJ BPU at annual auctions. Rate costs are adjusted for winter and summer seasons. 

(05/31/07)