Debate Continues Over Energy Savings in Gloucester Township

Gloucester Township, NJ -- Gloucester Township residents will save about 1 cent per kilowatt hour on their electric bill, according to letters sent out to township residents over the last month.

However, not all PSE&G customers will see savings, and residents who opt to get their own supplier may save more than those who participate in the Energy Aggregation Program.

Current Atlantic City Electric customers pay an average of 10.67 cents per kilowatt hour, while the rate offered by TriEagle is 9.78 cents per kilowatt hour, according to a letter sent by the township dated May 26. The new rate takes effect in August.

Gloucester Township, Winslow Township and Somerdale announced they entered into the agreement earlier this month.

Together, the townships give a company permission to be the energy supplier for all of these households. Each customer will still receive a bill from either Atlantic City Electric or PSE&G. They will continue to call their local electric company in case of an outage, and generally never notice any change.

However, the energy supplier changes, and the program is designed to help the township save money. The theory is the bigger the group, the bigger the savings, and that the government program is able to get a better price than individuals are.

According to a letter sent to PSE&G customers on June 22, ConEdison Solutions will offer a rate of 11.8 cents per kilowatt hour, as opposed to the average rate of 12.8 cents per kilowatt hour for PSE&G. The township says the average customer will save about $7 a month, but Joanne Carr told township council her rate will increase under the program.

“The amount I would be paying for ConEdison is bigger than the amount I pay for PSE&G,” Carr said during Monday night’s meeting.

Carr lives by herself and uses a minimum amount of electricity, and like other Gloucester Township residents and anyone involved in the program, has the option to leave the program at any time.

Anyone who chooses to do that should consult chooseenergy.com, Pete Heinbaugh suggested during Monday’s council meeting.

The aggregation program the township entered into is for 14 months.

Many of the “best rates” listed on the website as alternatives for Atlantic City Electric customers are for either 6 or 12 month fixed terms.

AEP Energy Traditional Plan offers a fixed rate of 9.65 cents per kilowatt hour for 24 months. Green Guarantee 12 Plus offers a fixed rate of 8.89 cents per kilowatt hour for 12 months. Several other options are either cheaper than or comparable to TriEagle’s rate, many with 6 month options.

As far as alternatives to PSE&G are concerned, Clear Green Guarantee offers a fixed rate of 10.49 cents per kilowatt hour for six months, and Commerce Energy offers a fixed rate of 11.09 cents per kilowatt hour for 12 months.

Gloucester Township Council President Orlando Mercado pointed out that these rates could fluctuate with the market, while the energy aggregation program offers fixed rates for all residents. Residents would also be responsible for renewing their contracts personally.

Council confirmed that the township will renegotiate with its energy suppliers before the 14th month expires, so that there is no time in which the status of a resident’s electric bill is up in the air.