New Jersey Breaking News

Board of Public Utilities Releases First Annual New Jersey Clean Energy Report 10/7

New Jersey Ratepayers Now Subject to Higher Rates and Other Fees 9/8

Electricity Bills Expected to Climb as Rate Caps Expire 8/1

Board of Public Utilities Releases First Annual New Jersey Clean Energy Report

(October 7) The New Jersey Board of Public Utilities (NJBPU) on Sept. 24 released the first annual report of the New Jersey Clean Energy Program. The New Jersey Clean Energy Program provides financial and other incentives to all of the state's energy customers -- residential, commercial and industrial -- for the installation of energy efficient equipment or renewable energy technology. Nearly $125 million has been committed annually to save energy, increase the amount of electricity from renewable sources and to provide assistance for the development of cutting edge energy technologies.

The New Jersey Clean Energy Program saved nearly 273,000 megawatts of electricity and 1.46 million dekatherms of natural gas from measures that were installed or committed to in 2002, representing nearly $25 million in annual savings. An estimated $384 million will be saved from the expected lifetime of the measures. There is a savings of approximately three dollars for every one spent in the Clean Energy Program. In addition, the program avoids almost 200,000 tons of emissions to help make the environment cleaner. These are all part of the McGreevey Administration's vision to make New Jersey a leader in the development of alternative energy and energy conservation programs.

"Renewable energy is clearly the future for a cleaner, healthy environment, while providing greater independence and security for New Jersey's homes and businesses," said NJBPU President Jeanne M. Fox. "The New Jersey Clean Energy Annual Report is an useful resource to learn more about the Clean Energy Program and ways in which the public can participate in making New Jersey the green power state."

The 2002 New Jersey Clean Energy Annual Report is a resource to learn about a number of successful initiatives in the following areas:

• Low-Income Retrofit Measures for Energy Conservation
• Energy Efficient Appliance and Lighting Rebates and Education
• Energy Efficient New Construction in Smart Growth Areas
• Energy Efficient Heating and Cooling Equipment

• Energy Efficient Equipment for Heating, Cooling, Lighting and Other Measures
• Energy Efficient New Construction in Smart Growth Areas
• Installation of Renewable Energy Systems

• Energy Efficient Equipment for Heating, Cooling, Lighting and Other Measures
• Energy Efficient New Construction
• Installation of Renewable Energy Systems
• Loans and Financing Tools for Energy Efficiency Projects and Renewable Energy systems
• Assistance for Leadership in Environmental and Energy Design (LEED)TM Projects

• Loans and Financing Tools for Energy Efficiency Projects and Renewable Energy systems for businesses
• Installation of Renewable Energy Systems for residences and businesses
• Financial Assistance for Renewable Energy Business Development in New Jersey
• Production Incentives for Renewable Power Plants

Office of Clean Energy Director Michael Winka said, "Energy independence and reliability are areas of critical importance to our country and our state. Both can be achieved with the energy efficiency and distributed clean energy programs that we have successfully implemented in New Jersey. These are tools the nation needs to look toward to make the grid smarter."

Source: New Jersey Board of Public Utilities Press Release

New Jersey Ratepayers Now Subject to Higher Rates and Other Fees

(September 8)  Since August 1, customers in the State of New Jersey have been subject to higher electric rates due to the lift of temporary rate caps as the state completed a shift to a deregulated electric market.

Customers will cover over $1 billion in inflated electric costs that the state’s four utilities incurred as a result of the purchase of power during market price spikes. In addition, customers will begin to pay fluctuating market rates for electricity rather than set rates established during the past four years. Each customer will now pay between three and 15 percent more for their electricity.

New Jersey is the only state that mandated a rate cap and allowed utilities to defer balances in a shift to a deregulated electric market.

In addition to higher rates, utility ratepayers will be paying for long-standing rate assistance program for seniors, a program formally funded by the state.

New Jersey’s governor, in setting next year’s state budget, shifted funding for the Lifeline Credit and Tenants Assistance program from state casino revenues to a surcharge on utility bills beginning August 1.

New Jersey ratepayers took over funding of the $72 million Lifeline credit program, as well as a $33 million Universal Service Fund that finances a new statewide low-income assistance program.

The state will launch an energy conservation campaign to encourage consumers to reduce energy consumption. The campaign will include rebates for energy efficient appliances and encourage customers to shift substantial energy use to non-peak periods. Large electric users may purchase fixed-price electricity contracts in order to reduce the risk of price swings and provide more stability in forecasting future costs.

Source: Associated Press, UtiliPoint International

Electricity Bills Expected to Climb as Rate Caps Expire

(August 1) Electric bills for millions of New Jersey residents will rise this month in part because rate caps established as part of the state's 1999 electric competition law have expired.

The law set a four-year transition period during which prices would be reduced by up to 15 percent while competition among electricity providers was supposed to take hold. Although that competition has not materialized in any meaningful way for residential customers -- only one alternative supplier serves New Jersey today -- the caps came off August 1.

That means a 15 percent monthly increase in the electricity bill of the typical customer of Public Service Electric & Gas, which serves two million customers in central and northern New Jersey. For customers of Conectiv, which does business in South Jersey, the increase for a typical customer will be 6 percent.

Seema Singh, New Jersey's ratepayer advocate, said her state's push for artificial savings in 1999 was well-intentioned but misguided. By demanding unrealistically low rates, lawmakers doomed competition from alternative electricity providers by making it difficult for them to make a profit, she said. As a result, most consumers had no incentive to shop around for electricity, she said. "If you choose not to choose, you save 10 percent," she said of the rate-cap policy.

Today, Green Mountain Energy Co. is the only alternative electricity supplier in the state for residential customers. John Holtz, a spokesman for Green Mountain, a supplier of energy from renewable and cleaner-burning sources such as wind power, said he doesn't expect a flood of applications from new customers as a result of the rate increases. For Green Mountain, business in the state so far has been abysmal.

The increases resulting from the lifting of the caps will affect customers of all four incumbent electric utilities serving New Jersey: Conectiv, Jersey Central Power & Light, Public Service Electric & Gas, and Rockland Electric.

The utilities have demanded, and will receive in part, money they said they lost during the transition period. Because wholesale electricity rates at times rose higher than the limits set by the state's caps, the utilities said they racked up nearly $1 billion in deferred charges that they can now pass along to customers.

Source: The Philadelphia Inquirer

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