Electricity auction to bring slightly higher rates in N.J.
Electricity rates will go up slightly for many New Jersey residential customers following Thursday's annual electricity auction for basic generation service.
Electricity rates will go up slightly for many New Jersey residential customers following Thursday's annual electricity auction for basic generation service.
The typical monthly bill will go up $1.29, or 1.1 percent, for a customer of Atlantic City Electric and $3.95, or 3.5 percent, for customers of Public Service Electric & Gas Co., according to the Board of Public Utilities (BPU), which supervised the process.
The annual auction of three-year supply contracts sets the price for a portion of the power supply. Most of the price was set in previous years' auctions of three-year contracts.
This year, the price of the power actually fell 4.3 percent compared with last year's auction, according to the BPU. But the lower price was offset by higher costs for generators to meet new capacity performance requirements set by the regional grid operator, PJM Interconnection Inc.
The higher performance standards were set for suppliers that promise to deliver power during peak-demand periods, when energy shortages can trigger dramatic price spikes and curtailment actions.
Power prices and transmission costs can vary in different parts of the state, depending on supply and line congestion.
Rates for Jersey Central Power & Light customers, in central and northern parts of the state, are expected to decline $1.12 a month, or 1.2 percent.