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Green Energy Pilot Program for Jersey

The New Jersey Board of Public Utilities (NJBPU) has approved the results of a sealed bid process to secure 200 MW of green energy to meet the electric demands of Jersey Central Power & Light (JCP&L) residential customers who have not selected an alternative supplier.

Newark, New Jersey - February 28, 2003 [] This will be the first time that customers have the option of choosing cleaner energy as part of Basic Generation Service (BGS). There will be no difference in price between those who choose to take part in the Green Pilot Program and any other residential customer that has BGS service. The 200 MW of green energy secured can meet the electric needs of up to 150,000 residential customers. "This is an good opportunity for customers in Jersey Central Power & Light's service area to choose environmentally friendly energy without incurring any additional cost, " said NJBPU President Jeanne M. Fox. "It's a win-win situation; good for the environment and the consumer. As a pilot, we'll be able to see how customers respond to the program and also determine their interest as we move forward." The NJBPU earlier this month approved the results of an auction to meet the needs of customers who currently receive BGS through the State's four incumbent electric distribution companies: Public Service Electric and Gas, Jersey Central Power & Light Company, Conectiv Power Delivery and Rockland Electric Company. That auction resulted in the securing of 95 billion kWh, worth approximately US$5.2 billion. The 200 MW of energy approved today for the pilot program has an approximate value of US$53 million. "Innovation is a vital factor as we make the transition to a competitive energy market," said Commissioner Frederick F. Butler. "The pilot program for JCP&L that was approved today is just another example of how New Jersey is providing original solutions to some of the challenges we face today." The winner of the auction is FirstEnergy Solutions Corporation with a low bid of 5.444 cents/kWh. Customers will see a slight increase of 0.307 percent when the 200 MW of green energy is averaged into overall BGS-Fixed Price costs. "I applaud JCP&L for participating in this program. Although this "green" pilot program will impose a minimal cost on JCP&L customers, it does bring us a small step closer to clean energy," said Commissioner Carol J. Murphy. To qualify as "green" for the bidding process at least 9.75 percent of the energy provided must come from renewable sources, such as wind, solar or biomass. This is three times the current renewable standard that retail companies must meet. Customers will have the option of opting into the pilot program. If not enough customers choose to participate; JCP&L will assign them on a random basis. The 150,000 residential customers who can participate in the pilot program represent approximately seven percent of JCP&L's total BGS-Fixed Price load.
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