Shared Service Opportunity Embraced By Hunterdon Freeholders

Hunterdon County’s Freeholders, on August 20th, approved a new environment friendly ‘green’ electric service contract that requires up to 48% of the generated power to be produced from renewable energy sources, saves the County nearly $123,000 in electric costs over the next two years, and extends cost savings to nine municipalities in the County.

Through an online reverse auction bid process, conducted by the energy consulting firm Concord Energy Services, as part of a shared service co-operative purchase program with the municipalities, the contract was awarded to MidAmerican Energy Services, LLC, headquartered in Iowa.

Freeholder Board Director Suzanne Lagay stated, “When the Board authorized this process in February, I stated this type of shared services opportunity has real value to our taxpayers. Now that shared service value is evident as our participating municipalities will save between 9 and 10% of electric power costs over the two-year life of the contract.”

Under the contract, the County and the participating municipalities have two options for electric power purchase; regular power generation that adheres to state renewable energy requirements or a higher standard with fewer environmental impacts, where up to 48% of the generation will be covered by generation certificates from renewable sources, such as wind, solar and bio-mass at a minimally higher cost, but still with a significant savings to the County.

Freeholder Board Deputy Director John E. Lanza supported the Board’s decision to approve the power purchase with the enhanced renewable option stating, “What you have is a situation where we have two options that are so close in price, they both save the county money, they both save our partners in the municipalities’ money, and one of them is much more environmentally friendly. This is a winner all around for everybody, if we take the green option.”

The participating municipalities include: Alexandria, Bloomsbury, Califon, Delaware Township, East Amwell, Flemington, Frenchtown, Kingwood, and Raritan Township. All the towns will benefit from lower electric generation costs under the co-operative purchasing program and will have the option to choose the enhanced renewable produced energy, if those governing bodies so desire.

Concord Energy Services, along with the County’s Purchasing Division, coordinated the participation of the Hunterdon municipal governments in the shared service program, pre-qualified potential bidders, and organized the on-line reverse auction bidding process, at no direct cost to the County. The firm’s fees are paid by the contracted energy services company.

The new contract will take effect on October 1, 2019 and run through September 30, 2021. The new electric service enhanced renewable rate will be 8.103 cents per kilowatt hour, as compared to the current JCP&L rate of 8.929 cents per kilowatt hour.