This bill mandates that the New Jersey Board of Public Utilities (BPU) allow basic generation service providers to participate in bidding for one, two, and three-year supply periods during basic generation service (BGS) auctions, specifically for Residential Small Commercial Pricing (RSCP) customers. The BPU is required to select the most price-competitive bids, although this provision does not apply to bids servicing commercial and industrial energy pricing class customers. The bill aims to address concerns that the current three-year supply periods may lead to increased electricity costs due to uncertainties in pricing.

Additionally, the bill stipulates that the BPU must adopt necessary rules and regulations to implement these changes, including guidelines for blending previously secured three-year supply contracts with newly procured contracts. The sponsors of the bill believe that shorter supply periods could potentially lower utility costs for New Jersey BGS customers, drawing on practices from similar auctions in other states. The act is set to take effect immediately upon passage.