New charges for PSEG customers in New Jersey

PSEG filed with the Federal Energy Regulatory Commission (FERC) an amended tariff that contained PSEG’s annual update to the formula rate for Network Integration Transmission Service (NITS).  The formula rate increased due to the cost of several approved future transmission projects in the service territory.

Additionally, the rate for the Regional Transmission Expansion Plan (RTEP), another transmission related charge, decreased due to the completion of a number of baseline transmission projects in the region.  The changes to PSEG’s tariff were approved by FERC and very recently approved by the New Jersey Board of Public Utilities.  They are effective retroactively to January 1, 2013. Pursuant to the contract terms, the Net NITS Adjustment will be applied to your monthly electricity usage as a Pass-Through Charge for the duration of your Agreement. The net impact of these adjustments is an increase in your Pass-Through Charges as follows:

Net NITS Adjustment = (New NITS rate plus New RTEP rate) minus (Previous NITS rate plus Previous RTEP rate)

Starting on your March invoice and continuing thereafter, this adjustment will be shown as a separate line charge called “NITS Rate Adjustment”.

New Jersey Electric Rates to Change

The NJ State Board of Public Utilities on Thursday approved the results of state’s annual electricity auction. It sets the wholesale electricity prices that the state’s electric utilities will pay and pass through to all New Jersey customers.

For three of the state’s four utilities, including Jersey Central Power & Light and Atlantic City Electric, there will be a  decrease in supply rates on June 1.  Rates for for PSE&G will be essentially the same.

Average JCP&L ratepayers will see a decrease of 3 percent; Atlantic City Electric customers will see a decrease of 5.35 percent and PSE&G customers will see their average rates increase by .05 percent.

The price of wholesale natural gas, which powers electric plants, is lower than in 2010. Since 2009, average energy costs for  small and medium-sized businesses have fallen about 30 percent, the BPU said.

But whether prices continue to fall in future years is unknown. “We have seen relative price stability in the last couple of years,” Hanna said. “What is going to happen in the future with natural gas prices is very difficult to predict.”  This is why fixed price contracts provide the opportunity to lock in long term fixed prices to protect from increases.

The value of both electricity auctions was about $7 billion, which represents approximately 8,700 megawatts of electric generating capacity.