New Jersey Approves Gas to Electric Pricing

The New Jersey Board of Public Utilities (BPU) has approved a change in the method used by Public Service Electric and Gas Co. to determine the price of gas paid by its electric division to its gas division for volumes needed to generate electricity. The new method adds two types of service beyond the current all-interruptible classification. The new "dedicated" volumes will only be subject to interruption at temperatures of 20 degrees or below. In addition, demand charges will be estimated based on monthly volumes rather than fixed historical annual volumes. The BPU found no evidence to support claims that the new dedicated service would allow the utility to capture cheap gas supplies for its electric division.The BPU pointed out that independent power suppliers and cogenerators were free to secure their own supplies under the utility's new

unbundled gas service tariffs. Re Public Service Electric and Gas Co., Docket No. ER94070293, May 5, 1995 (N.J.B.P.U.).

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