N.J. electric rates to fall

Electric power rates in New Jersey will decline on June 1, thanks to power auctions conducted this week that were supervised by the Board of Public Utilities.

The BPU on Wednesday approved auctions that it projects will decrease the monthly bill of a typical Atlantic City Electric Co. customer using 650 kilowatt hours by $5.64, or 4.5 percent. A monthly bill for a Public Service Electric & Gas Co. customer is expected to decrease $4.27 or 3.5 percent.

The annual New Jersey auctions determine the price that each electric utility charges for basic generation service. This is the price for the commodity charge, and it does not include distribution fees that utilities impose to deliver the power.

The generation price is based on the average of auctions held every February over a three-year period.

This year's auction reaffirms a three-year trend of declining prices, which analysts attribute to reduced demand caused by the economic downturn as well as low natural gas prices, a major fuel for electricity generators.

Last year, alternative electricity suppliers entered New Jersey residential markets to compete because they were able to offer power at a cost below the utilities' basic generation service.

New Jersey customers can find information on alternative suppliers by calling the BPU at 1-800-624-0241 or by visiting the BPU's website: http://www.state.nj.us/bpu/assistance/utility/index.html.