Eatontown To Save Thousands By Switching To Third Party Energy Provider

Eatontown is going with a third party electric provider this year in an effort to slash its municipal electric bill by thousands of dollars.

The Eatontown Council passed a resolution during a special meeting on Wednesday afternoon that will change the borough's electric provider from Jersey Central Power and Light (JCP&L) to Avion Energy Group.

Avion will provide electricity for all municipal buildings and street lights for one year.

Eatontown Borough Engineer Ed Broberg said the borough will save $43,6000 over the current rate it is paying to JCP&L by switching to Avion. The borough was paying over $100,000 to JCP&L for electricity, and that does not include delivery costs.

The borough chose a 12-month contract with Avion but also had the option for a 2-year contract that would saved the borough about $75,000 over the current 2-year rate with JCP&L.

Borough Administrator George Jackson said the consensus was to go with a 1-year rate so the borough could "go out to bid again next year if rates are lower again."

The borough chose Avion over five other bidders, because it came in as the lowest responsible bidder.

"This is our first time with a new provider, so we will see how it goes," Jackson said.

Councilman Kevin Gonzalez asked if the borough had any idea how electric rates were trending recently, and if the borough should take that into account when deciding between a 1-year or 2-year contract.

"Rates have come slightly, but not significantly," Broberg said. "There's not enough history to predict how the rates are going; they are always changing."

Jackson said rates would have to increase by 13 percent over the next two years for the borough to lose money in the switch.