Commercial customers in New Jersey have the ability to lock in electricity rates today that take advantage of wholesale energy prices that are as much as 30 percent lower than they were 2008, according to Constellation Energy’s Commodity Management Group (CMG).
This follows the New Jersey Board of Public Utilities’ recent approval of the latest fixed price electricity auction for Basic Generation Service (BGS). The BGS rate is a default price paid by those not buying power in the competitive marketplace. It is a blended index, incorporating power purchased in auctions in 2008 and 2009, when prices were much higher than today.
Essentially this means that New Jersey commercial customers—businesses, schools, hospitals, government agencies—on BGS service may pay a higher rate for electricity than they would in the competitive electricity market today. As a competitive supplier, we’re giving business customers the ability to lock in electricity based on today’s lower market rates and to secure those rates for up to the three years.
Approximately 60 percent of the eligible electric load in New Jersey switched suppliers last year. I expect that percentage could increase in 2010 as more businesses evaluate the costs of remaining on BGS versus locking in electricity during the current low price cycle.
New Jersey businesses should be tailoring their energy portfolio to suit their strategic and financial goals, not the other way around. Our customers are purchasing electricity from the competitive markets and gaining flexibility in the process. This includes deciding how much load they want to lock in and how long, as well as whether to incorporate renewables and other services that are designed to cut costs and improve sustainability.
In New Jersey, we’re offering one to three year fixed rate plans that provide budget certainty as well as plans that enable customers to fix only a portion of their energy rate and index the remainder to energy market prices. Additionally, we’re providing demand response services and New Jersey is a focus state for our $90 million capital commitment for solar development.
Commercial customers interested in learning more about how Constellation NewEnergy’s prices compare to current BGS rates can call our regional office directly at 212-885-6400 or e-mail CNESalesNJ@constellation.com.
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