Here’s How ‘Energy Aggregation’ Will Affect Montclair (VIDEO)

MONTCLAIR, NJ — What is “community energy aggregation” and how will it affect Montclair residents? This was the topic at a public Q&A session held at Town Hall earlier this month.

On May 9, the Montclair Office of Environmental Affairs hosted an information workshop about the Sustainable Essex Alliance Energy Procurement Cooperative (SEAEPC), which includes the towns of Montclair, Glen Ridge, Verona, Maplewood, Millburn and South Orange.

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).

Watch a video from the May 9 forum below.

In April, the Sustainable Essex Alliance Energy Procurement Cooperative (SEAEPC) 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.

• See related article: Deal May Mean Cheaper Electric Bills For 5 Essex County Towns

According to a news release from Montclair Township, Direct Energy Services LLC offered the lowest bid for a 17-month power supply contract.

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

For additional information, visit the SEA Energy Procurement Initiative webpage.

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