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New Jersey residents businesses will be spending more to keep the power on starting later this year. The New Jersey Board of Public Utilities has approved increases for homeowners and businesses that use the Basic Generation Service provided by each of the state's 4 primary electric utilities. The decision will result in marginally higher costs for electricity supplied by Atlantic City Electric Company (ACE), Jersey Central Power & Light Company (JCP&L), Public Service Electric & Gas Company (PSE&G), and Rockland Electric Company (RECO)..
Basic Generation Services rates are driven by an annual auction where power distribution companies lock in prices with power generation companies to provide electric to customers that haven't selected their own power supplier. The increase in cost has been attributed to rising energy costs and the risk associated with providing a fixed-price product.
The average monthly bill for a typical residential electric customer could see an increase ranging from 3.3% to 6.9%, depending on the utility. PSE&G customers are expected to see the smallest increase, at 3.3 percent. ACE customers are bracing for a 4.1 percent increase. JCP&L's rates are expected to increase by 4.8 percent, while RECO's customers could see an increase of 6.9 percent.
New Jersey allows homeowners and businesses to select their own electric supplier, while distribution continues to be provided by the local utility. Such suppliers can often result in a lower price per kilowatt hour- but often require signing a contract that can have early termination penalties.