NEWARK, N.J., Feb. 15, 2002 — PSEG (Public Service Enterprise Group Incorporated) said today it is pleased that New Jersey’s Basic Generating Service (BGS) auction, results of which were announced today, has succeeded in securing all energy needs for BGS customers of its utility subsidiary, PSE&G (Public Service Electric and Gas Company).
Through the auction, PSE&G successfully secured contracts with multiple suppliers for 96 tranches, each representing approximately 100 megawatts of peak load (9,600 MW).
The auction was run well and prices were determined by vigorous competition among numerous suppliers. The auction has achieved its objective of enabling New Jersey’s utilities to secure their electric supply needs at a competitive price.
PSE&G will pay 5.11 cents per kwh to obtain electricity for customers for the period August 2002 to August 2003. Customers will continue to pay regulated rates (BGS shopping credit) for this one-year period. The difference will be deferred and recovered in the future.
The NJ Board of Public Utilities (BPU) can be saluted for making the transition to a deregulated market a smooth one, especially when compared to some other states. Establishing an efficient method for securing electricity in the final year of the transition period will enable PSE&G to continue to offer highly reliable service to its New Jersey customers.
PSEG Power, PSEG’s unregulated, independent power generating subsidiary, did not participate directly in the auction but agreed to supply power to several of the direct bidders, securing contracts for a substantial portion of its generation capacity.