NJ Government Energy Aggregation Program

New Jersey Government Energy Aggregation Program Providing Residents An Opportunity For Reduced Electricity Rates

By: Mayor Charles Daniel

I recently attended a seminar concerning a New Jersey government program that allows for a municipality to aggregate energy usage of all its residents to obtain lower rates than they can get individually. My skepticism was high for two reasons (1) too many scams in the energy marketplace promising reduced rates, which typically last a short period, followed by a significant increase, and (2) if it is government sponsored, it’s too good to be true.

During this seminar, I heard nothing but positive feedback from other mayors/ administrators whose municipalities are currently participating in the program. Programs executed to date have achieved 8% – 14% savings vs. the utility default rate or price to compare. The price will always be below or equal to the default rate, no higher. There is no cost to a participating municipality or the community to implement the program.

I was ‘shocked’ out of my skepticism and asked the Borough Council to pursue. Council agreed. At the August Borough Council Meeting, a first reading of an ordinance occurred to join the Community Energy Aggregation Program.

We are pleased that we will be able to offer the electric energy savings to our residents. The program is very different than any other third-party supply contract and offers consumer protections that other third party suppliers do not offer. There will never be penalties or fees for opting out at any time and a flat, fixed rate (not variable) is paramount.

The community energy aggregation program is overseen by the New Jersey Board of Public Utilities (BPU) and the NJ Division of Rate Council. There is a law that allows municipalities to pool the energy usage from all residents within each municipality in an effort to find a lower rate on the electric supply portion of your bill.

This program is an opt-out program. This means that if you wish not to experience the fixed rate savings that is secured, you must opt-out. Group buying power as well as protections against fluctuating rates we see as a valuable service along with providing residents with the opportunity for energy savings.

We are expected to have a public hearing and second reading of the ordinance on September 18, 2017, and, if needed, will schedule a town hall meeting on the topic. In the meantime, if you have questions beyond what is addressed here you can call 866-688-5197. Representatives from Concord Energy Services and the program manager will be on hand at the public hearing to answer questions as well.

“The worst thing that can happen is you can save a little money.” – Mayor Christopher P. Vergano, Wayne Township

Last modified: December 30, 2018