N.J. Admin. Code § 14:4-6.9

Current through Register Vol. 56, No. 19, October 7, 2024

Section 14:4-6.9 - Price requirements for government-private programs

(a) This section governs the rates for services provided to residential and non-residential customers under a government-private energy aggregation program.

(b) A contract providing for electric generation service and/or gas supply service to residential customers shall not set a rate for such service that, at the time of the contract award, exceeds the benchmark price, as determined pursuant to this section, except that the rate for electric generation service may exceed the benchmark price in accordance with (g) below.

(c) The contract may set a fixed price per kilowatt hour, or may include a pricing structure that allows for fluctuations in price during the life of the contract. However, the pricing structure shall not be changed without notice to the customers in accordance with 14:4-6.1 1(a).

(d) The benchmark price for each rate class shall be calculated by each LDC and shall not exceed the applicable amount specified at (e) or (f) below. Each LDC shall post the benchmark price for each rate class on its website and update this information within 24 hours of any change. However, if the data underlying the benchmark price for a rate class changes daily, or more frequently, the LDC may calculate and post a monthly average benchmark price.

(e) The benchmark price for electricity generation service shall be:

1. The cost of basic generation service for the rate class; plus

2. The pro rata value of the cost of compliance with the renewable energy portfolio standards at N.J.A.C. 14:8-2, which value is derived from a non-utility generation contract with an electric public utility that provides for the transfer of certain environmental attributes from the electric public utility to a supplier of basic generation service. This pro rata value shall be calculated using the average class I and class II price as determined by the EDC, multiplied by that reporting year's total kWh output from each EDC's committed supply and divided by the fixed price basic generation kWhs sold in the reporting year.

(f) The benchmark price for gas supply service shall be the rate for basic gas supply service.

(g) A contract providing for electric generation service and/or gas supply service to residential customers under a government-private energy aggregation program may set a rate for such service that is higher than the benchmark price only if both of the following criteria are met:

1. The electricity provided contains a percentage of class I and class II renewable energy, as defined at 14:8-1.2, that exceeds the applicable percentage required under the renewable portfolio standards at N.J.A.C. 14:8-2; and

2. The participating municipality notifies all residential customers that will participate in or are eligible to participate in the program that an electricity rate higher than the benchmark price is under consideration. This notice shall be provided through the customer opt-out notice letter required under 14:4-6.5(c) and 6.6(q).

(h) The contract price for energy service to non-residential customers under a government-private energy aggregation program shall be determined through the bidding process.

N.J. Admin. Code § 14:4-6.9

Amended by R.2012 d.091, effective 5/7/2012.
See: 43 N.J.R. 1150(a), 44 N.J.R. 1534(a).
Rewrote (d) and (e)2; and in (e)1, deleted ", as defined at N.J.A.C. 14:4-1.2," following "service".
Amended by R.2013 d.067, effective 4/15/2013.
See: 44 N.J.R. 1589(a), 45 N.J.R. 934(b).
In (g)2, substituted "14:4-6.5(c) and 6.6(q)" for "14:4-6.5(g) and 6.6(s)".