Manchester Withdraws From Energy Cooperative

MANCHESTER, NJ — Manchester Township has withdrawn from a proposed energy aggregation cooperative, citing terms that would have been onerous, requiring township residents to opt out individually if the price of energy exceeded that offered by Jersey Central Power & Light.

The township had been in talks with Stafford and Lacey townships to join a cooperative agreement to secure a bulk rate for electricity from a third party supplier at a cost lower than JCP&L for several months.

"From the start, Manchester officials made it clear to residents that the township would not move forward without favorable contractual terms," township officials said in a news release Thursday.

Officials said the state Board of Public Utilities's rate counsel recently reviewed the proposal and recommended the township alter the terms of the agreement because it would have required Manchester to remain in the cooperative even if the aggregation cost is above JCP&L’s price.

Township officials had expressed the same concern during negotiations, the news release said, and agreed the terms were unacceptable.

"While residents would have had the option to opt-out of the aggregation program at any point, including during an unfavorable rate change, this process would require action by each residential electricity subscriber," officials said.

Township officials wanted the ability to terminate the program for all residents should the aggregation rate be beyond JCP&L’s newly adjusted price, they said, but the energy consultant in concert with Lacey Township would not agree to alter the terms.

“Energy aggregation is a concept that the township has been interested in for many years, as it promises savings on a basic necessity. As is evident by this withdrawal, the council and I are committed to completing our due diligence before entering into any agreement,” Mayor Kenneth Palmer said. “The terms must be favorable for our residents.”

Given its merits, officials now plan to move forward with energy aggregation, but without the use of a cooperative. The Township Council is expected to introduce a resolution to advertise for bids for a consultant at an upcoming regular meeting, the release said.

Energy aggregation provides for a lower electricity bill while retaining service from JCP&L, officials said. JCP&L continues to service residents’ homes while the electricity is be delivered by another provider at a lower cost.

The program works through an “opt out” system, meaning residents would be automatically enrolled unless they return a postcard indicating they do not want to participate.

Residents with solar panels and those already enrolled in another energy program will not be included in the program.