New Jersey Electricity Provider - Deregulation
GDF SUEZ Energy Resources was licensed as a commercial electricity provider in New Jersey by the NJ Board of Public Utilities on August 6, 2003. Currently, we provide electricity service to commercial and industrial customers in both Fixed Price (FP) and Commercial and Industrial Energy Pricing (CIEP) rate classes in the following regions:
- Public Service Electric & Gas Co. (PSEG)
- Jersey Central Power & Light (JCPL)
- Atlantic City Electric Company (AECO)
- Rockland Electric Company (RECO)
Under the Act, all customers transitioned to market based prices by July 31, 2003. During the transition period customers received mandated discounts off the bundled utility rates. The discounts were phased in 5 percent increments, resulting in approximately 20 percent discounts by year 2003.
However, beginning in August 2003, the NJ market structure changed dramatically. As the largest energy consumers in the state - CIEP customers now face market based pricing as their default service and as such will bear all the volatility of the PJM market. The remainder of the C&I sector has the alternative of receiving Fixed Price Basic Generation Service; of course all customers have the alternative of selecting a third party supplier.
What happens when you choose a new commercial electricity supplier?
- The new supplier notifies the old supplier and utility that you have changed suppliers.
- The new supplier transmits utility account information to the utility in order to enroll you as a customer.
- The utility confirms, by letter to you, of your new supplier selection and the date your new service begins.
- The actual change of supplier occurs on the meter reading date following a successful enrollment.
Competition in New Jersey has been well received. Approximately 50 percent of the eligible customers have entered the market and have switched to a provider other than the incumbent utility. Switching has been greatest in the CIEP class, driven by a $5/MWhr credit to customers that switch.
For more on the history, structure and future of New Jersey’s deregulated electricity market, visit the NJ Board of Public Utilities.