Deal May Mean Cheaper Electric Bills For 5 Essex County Towns

ESSEX COUNTY, NJ — Residents of five, neighboring Essex County towns – which are all members of an energy purchasing cooperative – may stand to save money on their electric bills this summer, officials say.

The Sustainable Essex Alliance Energy Procurement Cooperative (SEAEPC) recently announced that the cooperative’s energy consulting company, Gable Associates, has identified the winning bidder for electricity generation service in Montclair, Glen Ridge, Verona, Maplewood and South Orange.

According to a Thursday news release from Montclair Township, Direct Energy Services LLC offered the lowest bid for a 17-month power supply contract. Gabel Associates Vice President Bob Chilton said the bid was almost 15% below the current price, the Village Green reported.

Officials in several of the affected towns predicted that their town’s residents will face lower electricity bills this summer as a result.

In Maplewood, the average household may see a $140 savings over the life of the contract, the Village Green reported.

“The 8,000 electric customers in Maplewood will save about $1 million in electric costs over the 17 months,” Mayor Victor DeLuca told the Village Green.

In Montclair, the deal is expected to translate into a 10% savings on electricity, as compared to projected PSE&G prices, officials said.

“Depending on usage, Montclair ratepayers could save approximately $150 over the life of the contract,” Gabel Associates Vice President Bob Chilton said. “If an estimated 12,000 township residential accounts participate in the plan, this will bring overall savings to around $1.8 million for this community.”

In addition to cost savings, residents will get access to a “much cleaner electricity supply,” composed of at least double the amount of renewable energy required by the state and provided by PSE&G. This means a total renewable energy content of around 40% overall for Montclair, officials claimed.

“Increasing use of renewable power is one of the most important strategies for developing a more sustainable approach to how we choose and use our energy,” Montclair Sustainability Officer Gray Russell said. “In Montclair’s case, both cost savings and higher renewable content will be realized simultaneously.”

WHAT IS COMMUNITY ENERGY AGGREGATION?

A bulletin posted on the Glen Ridge municipal website in March 2019 provides some background about the role of the SEAEPC, and how it affects the way residents purchase their electricity:

“For nearly 20 years, New Jersey’s electric industry has been open to competition, meaning that, while the local electric utility (PSE&G) still has the responsibility for providing delivery service, consumers have the ability to receive the power supply from any number of licensed suppliers competing in the marketplace. Under the State of New Jersey’s Government Energy Aggregation law, another option is provided whereby municipalities are permitted to pool residents together and conduct a competitive bid for power supply on behalf of residents. Since 2012, dozens of municipalities throughout the state have followed this path and implemented so-called ‘community energy aggregation’ programs… In addition, there has been a recent trend to utilize the ‘bulk purchasing power’ created by community energy aggregation programs to try to obtain green power for residents at a beneficial price.”

Residents who don’t want to participate can opt-out of the program for any reason, at any time (learn more here).

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