Community Energy Aggregation

Over the past few months, Borough Council has been considering establishing a Community Energy Aggregation (CEA) Program for Califon residents. The CEA Program is designed to offer you and your neighbors reduced rates on your electric bills.

Back in September of this year, Council members listened to a presentation on the savings opportunity offered to residents through participation in a CEA program by aggregating the buying power of individual residential customers within a municipality (or several municipalities) to secure reduced-rate energy supply contracts on a community-wide basis. We learned that several towns in nearby counties have joined together to form energy cooperatives: the Morris Area Energy Cooperative (comprised of 10 towns), the Sussex-Warren Cooperative (also comprised of 10 towns) and the Burlington County Energy Aggregation Program (also comprised of 10 towns). These cooperatives function very similarly to other shared services arrangements.

In this case, by combining all of our residents’ energy usage, we can shop for a reduced “bulk” electricity supply rate rather than each resident paying the rate set by the State for an individual account. Basically, this program allows us – at the local level  – to offer a more cost-effective alternative to our residents. The New Jersey Board of Public Utilities  was in attendance for the presentation and provided information about the consumer protections offered through CEA programs versus individual third-party  supply contracts.

One of the primary safeguards under a CEA program is that the rate charged under the  program MUST be lower than the State’s default rate. This “default rate” is the rate that all of us, not already in a third-party supply contract, pay now for our electricity supply.

Another consumer protection with a CEA program is that the program rate is a flat, non-variable rate, that is set for the term of the contract with the program’s supplier. There are also no fees, fines, or penalties  associated with a resident’s participation – or non- participation – in the program. Residents can come  and go in the program as they see fit. Initially all residents, not currently in a contract with a third-party supplier, or with solar panels, will be included in the program, but this does not mean that a resident has to stay in the program.

Residents will have several  methods by which they can change their participation status in the program at any time and at no cost.  A very important point made during the presentation is that ALL current services provided by JCP&L, such as delivery, meter readings, billing, payments, emergency services, etc., don’t change because we join a CEA program or cooperative. Essentially, not  much changes at all other than our residents receiving a smaller monthly electricity bill.  

Based on what we learned during the presentation and in our discussions with other towns currently  participating in a CEA program or cooperative, the Borough Council decided to establish a community energy aggregation cooperative for Hunterdon County, called the ‘Hunterdon Area Energy Cooperative’ with Califon as the Lead Agent for the cooperative. As Lead Agent, the Borough of Califon will be the unified voice for all towns that decide to participate  in the cooperative.

Currently, Clinton and Bethlehem are in the process of considering CEA programs  for their residents as well, and it is highly likely that others will follow, as word spreads about the savings opportunities.  We will keep you updated on our progress in bringing these savings to you and our neighbors in other  towns in Hunterdon County.

Last modified: November 26, 2017