As approved by the New Jersey Board of Public Utilities (“BPU” or the “Board”) on November 21, 2024, BGS-RSCP suppliers will receive adjustments to the payments for capacity for the 2026/2027 and 2027/2028 delivery years in the event that the capacity charges for these delivery years are not known prior to the 2025 BGS-RSCP Auction. These calculations are fully described in the Supplements to the BGS-RSCP Supplier Master Agreement. The BPU Order approving the 2025 BGS Auction Process can be found on the BGS Orders page of the BGS Auction website.

If the capacity charge for the 2026/2027 delivery year is not known at least five (5) business days prior to the start of the Auction, in the period from June 1, 2026 and May 31, 2027, an EDC’s BGS-RSCP supplier will receive payment (or will be charged) based on the difference between the capacity price paid by the BGS-RSCP supplier for that EDC and the capacity proxy price approved by the Board for the same EDC. The method approved by the Board for determining the capacity proxy prices for the 2026/2027 delivery year is to set the capacity proxy prices for the 2026/2027 delivery year equal to $270.35/MW-day, the Base Residual Auction results for the 2025/2026 delivery year, for all the EDCs. If the capacity charge for the 2027/2028 delivery year is not known at least five (5) business days prior to the start of the Auction, in the period from June 1, 2027 and May 31, 2028, an EDC’s BGS-RSCP supplier will receive payment (or will be charged) based on the difference between the capacity price paid by the BGS-RSCP supplier for that EDC and the capacity proxy price approved by the Board for the same EDC. The method approved by the Board for determining the capacity proxy prices for the 2027/2028 delivery year is to set the capacity proxy prices for the 2027/2028 delivery year equal to $270.35/MW-day, the Base Residual Auction results for the 2025/2026 delivery year, for all the EDCs. 

At this time, the capacity charges for the 2026/2027 and 2027/2028 delivery years are not expected to be known at least five (5) business days prior to the 2025 BGS-RSCP Auction.  As such, the value of the capacity proxy price for the 2026/2027 delivery year, as approved by the BPU, is $270.35/MW-day, and the value of the capacity proxy price for the 2027/2028 delivery year, as approved by the BPU, is $270.35/MW-day.  The Auction Manager will reconfirm the values of the capacity proxy prices for the 2026/2027 and 2027/2028 delivery years no later than five (5) business days prior to the BGS-RSCP Auction. 

The BGS Supplier Master Agreement makes the BGS Supplier responsible for legislative changes that are in effect during the term of the contract.  If you have any questions concerning the legal standing of the Board Order and the possibility that such an Order will be overturned, we strongly advise that you consult with counsel qualified to make such assessment.  It is not the role of the EDCs or the BGS Auction Manager to provide a legal interpretation of the Board Orders for bidders and we cannot speak to the future actions of the Board or the legislature.  It is entirely up to each bidder to come to its own determination.