Agenda Date: 06/14/07Agenda Item: 2C

State lot New JerseyBoard of Public Utilities

Two Gateway CenterNe'Nark, NJ 07102

~,.bpu.state.ni.us

IN THE MATTER OF THE PROVISIONOF BASIC GENERATION SERVICE FORYEAR TWO OF THE POST-TRANSITIONPERIOD

))

ENERGY

DECISION AND ORDER

DOCKET NO. ERO7060379

(SERVICE LIST ATTACHED)

BY THE BOARD:

By prior Board Orders, Docket No. EO05040317, dated 12/08/05 and Docket No. EO06020119,dated 12/22/06 the Board approved, wi1lh modifications, the joint Basic Generation Service(BGS) proposals of Conectiv Power [)elivery (Conectiv), Jersey Central Power & LightCompany (JCP&L), Public Service Electric and Gas Company (PSE&G) and Rockland ElectricCompany (Rockland) that used a descending clock auction format to procure two-thirds of theState's BGS requirements for Fixed-Price (FP) customers through periods extending to May 31,2010. In those prior Orders, the Board did not address how the remaining one-third of theState's BGS requirements for FP customers, as well as the State's annual BGS requirementsfor Commercial and Industrial Energy Pricing (CIEP) customers would be procured for theperiod beginning June 1, 2008.

The process adopted by the Board to determine how to procure BGS for the past six yearsprovided opportunity for participation by all interested parties through both written commentsand at public hearings which resulted in a wide range of BGS suggestions, a timely Boarddecision and, ultimately, a successful pro(;urement process. Accordingly, the Board intends toinitiate a proceeding, consistent with the procedure employed for the past six years, todetermine what type of process should ble used to procure BGS FP and CIEP Service for theperiod beginning June 1, 2008. The proposed schedule would result in a Board decision inOctober of 2007 on the process, to be followed by the procurement of BGS FP and CIEPrequirements in February 2008, subject to Board approval.

Therefore, the Board DIRECTS the Electric Distribution Companies (EDCs) Conectiv, JCP&L,PSE&G, and Rockland to file proposals rlo later than July 2, 2007 addressing how to procurethe remaining one third of the State's BGS FP and the annual CIEP requirements for the periodbeginning June 1, 2008. In addition, the 130ard also invites all other interested stakeholders tofile alternative BGS procurement proposal:s with the Board by July 2, 2007.

Furthermore, the Board ADOPTS the preliminary procedural schedule in Attachment A to thisOrder. Interested parties should file discovery and comments with the Board's Secretary andcirculate them electronically through the electric list server used by Staff for these types ofcommunications. Parties should adhere to the attached schedule unless otherwise directed.

Parties will be advised of the time and place of the legislative-style hearing identified inAttachment A through the electric list server used by Staff for these types of communications.The Board and/or Staff will also notify parties through the electric list server and, when possible,through the BPU webpage of the time and location of any meetings or hearings as well as anyschedule changes.

.Further, the Boston Pacific Company, Inc:. (BP) was hired by the Board in December 2006 tooversee and monitor the 2007 Auction process proposed by the four EDCs in New Jersey toprocure supplies for BGS FP and CIEP c::ustomers. Among the many related tasks, BP wasresponsible for providing a Final Report on the auction results with recommendations to improvefuture auctions. At its May 23, 2007 Agenda meeting the Board acknowledged receipt of the BPFinal Report. The BP Final Report is available on the Board's website at the following linkhtt ://www.b u.state.n..us/wwwroottener /BGSfinal 20070430. df.

BP in its BGS Final Report provided recommendations for changes to be considered by theEDCs, stakeholders and the Board !hrough the BGS proceedings process in an attempt toimprove future BGS Auctions. These include issues pertaining to RPM and CIEP; Three One-Year Products; and Random Element of Decrements within the BGS Auction process. As partof the July 2, 2007 EDCs BGS filings, the Board DIRECTS that the EDCs as well as interestedstakeholders address the recommendations in the Boston Pacific (BP) BGS Final Reportrelating to: RPM and CIEP; Three One-Year Products; and Random Element of Decrements.

BOARD OF PUBLIC UTiliTIESBY:

ATTEST: ~'

KRISTI IZZOSECRETARY

2 DOCKET NO. ERO7060379

ATTACHMENT AERO7060379

Preliminary 2008 BGS Auction Schedule

Filing by all parties of Proposals and/or Modifications for BGS 2008Discovery request deadlineDiscovery response deadlineDeadline for Initial Comments on all proposalsLegislative-type Board HearingPublic Hearing*Deadline for Final CommentsExpected Board decision on BGS proposals

EDC Compliance Filing

Expected Board decision on Compliance Filing

BGS Auctions

* This is a placeholder for public hearings (time and place to be scheduled by the EDCs in

conjunction with the BPU), as required.

June 19, 2007 Page 1 of3Board of Public Utilities

Basic Generation Service ("BGS")ERO7060379Service List

BPUSTAFFKristi Izzo, SecretaryBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

Kevin ConnollyJCP&L300 Madison AvenuePO Box 1911Morristown,NJ 07962-1911

SUPPLIERSMatt NollenbergerAEP155 W. Nationwide Blvd. St. 500Columbus, OH 43215

Mark BeyerChief EconomistBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

RATEPAYER ADVOCATESeema M. Singh, ActingRatepayer Advocate & DirectorDivision of Ratepayer Advocate31 Clinton Street, 11th FloorP.O. Box 46005Newark, New Jersey 07102

Scott BrownExelon Energy (PECO)2315 Enterprise DriveWestchester, IL 60154-5811

Larry SweeneyJCP&L300 Madison Ave,P.O. Box 1911Morristown, NJ 07962-1911

Nusha Wyner, DirectorDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

Badrhn M. Ubushin, Esq.Division of Ratepayer Advocate31 Clinton Street, II dI Floor

P.O. Box 46005Newark, New Jersey 07101 David Koenig

Allegheny Energy909 3rd Avenue, 33rd FloorNew York, NY 10022

Marc B. Lasky, Esq.Thelen Reid Brown Raysman &Steiner LLP200 Campus Drive, St. 210Florham Park, NJ 07932

Frank PerrottiDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

Ami MoritaDivision of Ratepayer Advocate31 Clinton Street, II d1 Floor

P.O. Box 46005Newark, New Jersey 07101

Eric KonopackyConstellation Power Source, Inc.III Market Place, Suite 500Baltimore, MD 21202

Julie Friedberg, Esq.Thelen Reid Brown Raysman &Steiner LLP200 Campus Drive, St. 210Florham Park, NJ 07932 Brian Liu

Constellation Power Source, Inc.III Market Place, Suite 500Baltimore, MD 21202

Rene DemuynckDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

Kurt LewandowskiDivision of Ratepayer Advocate31 Clinton Street, 11 d1 Floor

P.O. Box 46005Newark, New Jersey 07101 ~

Francis E. Delany, Jr., Esq.Public Service Electric & Gas Co.80 Park Plaza, T8CNewark, NJ 07101

Murry WeaverEntergy Power Marketing Corp.Parkwood Two Building, Suite 50010055 Grogan's Mill RoadThe Woodlands, TX 77380

Diane SchulzeDivision of Ratepayer Advocate31 Clinton Street, II th Floor

P.O. Box 46005Newark, New Jersey 07101 Frances I. Sundheim, Esq.

Public Service Electric & Gas Co.SO Park Plaza TSCNewark, NJ 07101

John GarveyOffice of the EconomistBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

John StutzTellus Institute11 Arlington StreetBoston, MA 02116-3411

David SamuelsMorgan Stanley Capital Group, Inc.2000 Westchester Ave.Purchase, NY 10577Alice Bator, Chief

Division of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

ROCKLANDJohn L. Carley, Esq.Consolidated Edison Co. of NY, Inc.4 Irving PlaceNew York, NY 10003

~Phil PassanantePepco Holdings, Inc.800 King StreetPO Box 231Wilmington, DE 19899-0231

Deborah HartMorgan Stanley Capital Group, Inc.2000 Westchester Ave.Trading FloorPurchase,NY 10577Dennis Moran, Asst. Director

Division of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

James C. Meyer, Esq.Riker, Danzig, Scherer, Hyland &Perretti, LLPHeadquarters PlazaOne Speedwell AvenueMorristown, NJ 07962

Catherine FlaxMorgan Stanley Capital Group, Inc.1585 Broadway, 4th FloorNew York, NY 10036

Mark Mucci, Esq.Saul Ewing LLPOne Riverfront Plaza, 5th FloorNewark, NJ 07102-5490

Michael MerizioDivision of EnergyBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

David HernandezOrange & Rockland Utilities390 West Rt. 59Spring Valley, NY 10977-5320

Sharon WeberPP&L Energy Plus2 North 9th Street TW 20Allentown, PA 18101

Joe JanochaAtlantic City Electric Co.5100 Harding HighwayMays Landing, NJ 08330

Kevin JonesOrange & Rockland Utilities390 West Rt. 59Spring Valley, NY 10977-5320

Gary SorensonPSEG Power80 Park Plaza, T-21ANewark, NJ 07102

Peter SchaubPepco Holdings, Inc.70I Ninth Street NWWashington, DC 20068-000I

Gregory MarquisPHI Power Procurement701 Ninth StreetNWWashington, DC 20068

~Carla BellaDivision of LawDept. of Law & Public Safety124 Halsey StreetP.O. Box 45029Newark, New Jersey 07102

fJMJackie HugeePJM Interconnection, L.L.C.955 Jefferson AvenueValley Forge Corporate CenterNorristown, PA 19403-2497

Shawn P. LeydenPSEG Energy Resources & Trade80 Park Place, T-19Newark, NJ 07102Babette Tenzer

Division of LawDept. of Law & Public Safety124 Halsey StreetP,O. Box 45029Newark, NJ 07102

Ken SalamoneSempra Energy Trading Corp.58 Commerce RoadStamford, CT 06902

,!Q.&1Michael J. FilipponeJCP&L300 Madison AvenuePO Box 1911Morristown. NJ 07962-1911

June 19,2007 Page 2 of3Board of Public Utilities

Basic Generation Service ("BGS")ERO7060379Service List

Dale Kantennan, VPEastern Energy Services60 Fostertown RoadMedford, NJ 08055

Gary FerenzConectiv Energy Supply Inc.Christiana Bldg.252 Chapman RoadP. O. Box 6066Newark, DE 19714-6066

David SamuelsIPMorgan Commodities270 Park Ave., 6th FloorNew York, NY 10017

Marilena MarrelliSempra Energy Trading Corp.58 Commerce RoadStanford, CT 06902

MARKETERSIrene PrezeljFirstEnergy Solutions395 Ghent Rd., Ste. 408Akron, OH 44333

Marc HanksSelect Energy, Inc.107 Selden StreetBerlin, CT 06037

Ike GibbsReliant Energy, Inc.379 Thoma! StreetFifth FloorEdison, NJ 08837

Katharine OlinchakConectiv Power Delivery401 Eagle Run Rd.PO Box 9239Newark, DE 19714-9239

Bill RiceReliant Energy1111 Louisiana StreetHouston, TX 77002

Kevin LaguardiaAmerada Hess CorporationOne Hess PlazaWoodbridge, NJ 07095

Tom KinnaneDirect Energy3 Bethesda Metro Center st. 7007450 Wisconsin Ave.Bethesda, MD 20814

Rose BurkeConectiv Energy Supply Inc.Christiana Bldg.252 Chapman RoadP. O. Box 6066Newark, DE 19714-6066

Shalin ShahReliant Energy1111 Louisiana StreetLocation 1971DHouston, TX 77002

Ariel LoggerCustomized Energy Solutions100 North 17th Street 14th FloorPhiladelphia, PA 19103

Tom MichelmanXenergy3 Burlington Woods, 4th fl.Burlington, MA 01803-4543

Maria RobinsonCon Edison ~nergy701 Westchester AvenueSuite 201 WestWhite Plains, NY 10604

Tim DanielsConstellation NewEnergy810 7d1 Ave., Ste. 400New York, NY 10019

Pamela MeltonStrategic Energy LLCPO Box 44-449Ft. Washington. MD 20749

Leah GibbonsReliant Energy LLC324 Cedar LaneRockvilIe, MD20851 Stephen Wemple

Con Edison Energy701 Westchester AvenueSuite 201 WestWhite Plains, NY 10604

George BraulkeGabel Associates417 Denison StreetHighland Park, NJ 08904

OTHER PARTIESJack JohnsonPresidentGeophonic, Inc.P.O.Box 580Summit, NJ 07901

Brian WhitlatchAEP155 W. Nationwide Blvd., St. 500Columbus, OR 43215 John Holtz

Green Mountain Energy Co.3000 Atrium WayMail Box 275Mount Laurel, NJ 08054

Angelo CharnbroneSelect Energy NY, Inc.507 Plum StreetSyracuse, NY 13204

Igor GontaJ. Aron & Co.85 Broad Street, 9th FloorNew York, NY 10004

Nathaniel GreeneNRDC40 W. 20th Street, 11th fl.NewYork,NY 10011

Christian HnatEdison Mission Marketing &Trading160 Federal Street, 4th FloorBoston, MA 02110

Paul DwyerGreen Mountain Energy Co.123 Bloomingdale Ave.Suite 202Wayne, PA 19087

Kuljinder ChaseEnergy TradingMerril Lynch Capital Services4 World Financial Center 7th fl.New York, NY 10080

Sara BluhmNJBIA102 West State StreetTrenton, NJ 08608-1199

Leonard E. NavitskySelect Energy, Inc.3301 Cherokee St.Emmaus, PA 18049

Robert ViolaEdison Mission Mktg. & Trading160 Federal Street, 4th FloorBoston, MA 02110

Jay KooperAmerada Hess Corp.One Hess PlazaWoodbridge, NJ 07095

Tom MichelmanSenior Professional -XENERGY3 Burlington Woods -4th FloorBurlington, MA 01803-4543

Melanie Willoughby, VPNJBIA102 West State StreetTrenton, NJ 08608-1199

Gordon SandersonSuez Energy Marketing NA1990 Post Oak Blvd.Suite 1900Houston, TX 77056-3831

Ira MegdalCozen, O'ConnorLibertyview, St. 300457 Haddonfield RoadP.O. Box 5459Cherry Hill, NJ 08002-2220

Kate McNamaraDelaware River Port AuthorityPort Authority Transit Corp.One Port Center2 Riverside DriveCamden, NJ 08101

Bob TrejoUBS677 Wawshington Blvd.Stamford, CT 06901

Lisa FergusonDuke Energy North America5400 Westheimer CourtHouston, TX 77056

Steve SheppardDTE Energy Trading414 S. Main St., Suite 200Ann Arbor, M148104

Roger M. SchwarzGovernmental Affairs (RESA)1 Benjamin Rush LanePrinceton, NJ 08540Michael G. Briggs

Reliant Resources, Inc.801 Pennsylvania Ave. NWWashington, DC 20004-2604

D. Michael CornwellDominion Retail, Inc.120 Tredegar StreetRichmond, VA 23219

Marvin SpiraFood Policy Institute71 Lipman DriveNew Brunswick, NJ 08901

Stephen J. HumesMcCarter & EnglishCityPlace 1Hartford, CT 06103

SueAnne I. HarrelPepco Energy Services101 Castle Pointe Blvd.Piscataway, NJ 08854

William BarkasDominion Retail, Inc.625 Liberty Ave., 21st FloorPittsburgh, P A 15222

Grace KurdianMcCarter & English245 Park Ave.New York, NY 10167

Richard SantoroNJ Retail Merchants Assoc.332 W. State StreetTrenton, NJ 08618Dana Swieson

EPEX102 Pickering Way, Suite 102Exton, PA 19341-1330

June 19,2007 Page 3 of3Board of Public Utilities

Basic Generation Service ("BGS";ERO7060379Service List

James BentonNJ Petroleum Council150 W. State StreetTrenton, NJ 08608

David GillespieNJ TransitOne Penn Plaza EastNewark, NJ 07105-2246

Linda DohertyNJ Food Council30 W. Lafayette St.Trenton, NJ 08608

Frank MagnottiComverge, Inc.120 Eagle Rock Ave., St. 190East Hanover, NJ 07936

Gregory LawrenceMcDermott Will & Emery28 State StreetBoston, MA 02109-1775

Paul ForshaySutherland Asbill & Brennan1275 Pennsylvania Ave. NWWashington, DC 20004-2415

Steven S. Goldenberg, Esq.Fox Rothschild997 Lenox Drive, Bldg. 3Lawrenceville, NJ 08648

Howard ThompsonRusso Tumulty NesterThompson & Kelly LLPOne Exchange Place, Suite 501Jersey City, NJ 07302

Daniel O'Hem, Jr.Becker Meisel, LLCThe Galleria2 Bridge Ave., Bldg. 1Red Bank, NJ 07701

Murray BevanCourter, Kobert, & Cohen, P.C.1001 Rt. 517Hackettstown, NJ 07840

James LaskeyNorris McLaughlin & Marcus721 Rt.202-206Bridgewater, NJ 08807

Dena MottolaNJPIRG11 N. Willow StreetTrenton, NJ 08608

Phyllis Salowe-KayeNJ Citizen Action433 Market St. Suite 201Camden, NJ 08102