However, both the New Jersey Natural and South Jersey pilot programs were oversubscribed and enlarged. In June 1999, the Board directed that a working group of gas utilities, third-party suppliers, and consumer advocates be formed in an effort to reach a consensus on some of the issues related to implementing retail competition, such as metering, billing, customer enrollment, and marketer agreements. The Board approved the rate unbundling filings of the LDCs in January 2000. The Electric Discount and Energy Competition Act , P.L. 1999. Opens up the state energy industry to competition, mandating restructuring of electric utilities by August 1999 and gas utilities by December 31, 1999.
Utilities are to be given the opportunity to recover prudently incurred stranded costs.
The Board of Public Utilities is to oversee the restructuring process and define standards for fair competition, gas affiliate relations, accounting and reporting, and third-party supplier licensing, safety, and service quality. Gas and electric power suppliers must be licensed before they can offer retail services. The act authorizes energy aggregation by private and government entities. Failure to do so will result in the company being unable to provide gas supply service in the state. A government aggregator may have only one contract for either electric or gas service or both services for consumers within their jurisdiction but not two contracts for the same service.