Third Party Energy Supply

Electric
Regulated portion

 

The utility companies regulated by the state of NJ provide Energy Delivery services to all of their customers through their Tariff(s) for Electric Service. For most customer accounts,Energy Delivery includes the distribution of electrical energy at safe, usable levels, the metering of and monthly billing for both energy usage and peak power demand levels at appropriate tariff rate classifications. The level of service is typically considered retail sales and Tariff rates are regulated by the New Jersey Board of Public Utilities.

For New Jersey customers who do not choose an independent Third Party Supplier, the regulated utility company will also deliver their Energy Supply, which by default is also provided at the regulated tariff rates of the Basic Generation Service (BGS), either Fixed Pricing (FP) or Commercial Industrial Energy Pricing (CIEP). BGS represents the costs of electricity generation and transmission. BGS rates change annually each June and are arrived at competitively through a reverse auction process across each of New Jersey’s four regulated utility companies to determine default service costs for Energy Supply. When billing at BGS rates, all billing components build the effective cost of Energy Supply for each individual account. This is also called the Price to Compare.

Unregulated portion
 

The utility companies regulated by the state of NJ provide Energy Delivery services to all of their customers through their Tariff(s) for Electric Service. For most customer accounts, Energy Delivery includes the distribution of electrical energy at safe, usable levels, the metering of and monthly billing for both energy usage and peak power demand levels at appropriate tariff rate classifications. The level of service is typically considered retail sales and Tariff rates are regulated by the New Jersey Board of Public Utilities.

For New Jersey customers who do choose to switch to an independent Third Party Supplier, their Energy Supply Charges can be offered in a variety of forms, such as fixed price full requirements, indexed pricing, month-to-month pricing, blended pricing, prices with caps, collars, floors, etc. The Energy Supply is the unregulated part of the supply chain and is comprised of the costs of electricity generation and transmission.

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