Montclair, Other Towns Switch Electric Supplier Due To Volatile Prices

MONTCLAIR, NJ — Rising electric prices have forced Montclair and six other New Jersey towns to temporarily switch back to PSE&G as part of a cooperative energy purchasing agreement. But local officials say the Sustainable Essex Alliance (SEA) plans to seek a new wave of bids to supply the towns with power in the near future.

In recent years, seven towns in North Jersey – Glen Ridge, Glen Rock, Livingston, Maplewood, Montclair, South Orange and Verona – have been changing the way they buy electricity via energy aggregation, which allows residents to join a single buying pool and leverage their purchasing power. Residents who don’t want to participate are able to opt out of the program. Read More: Energy Aggregation Marches Forward In Essex County

The SEA’s current contract with Energy Harbor LLC will end in September. However, rising energy prices have skewed the market in favor of PSE&G, officials recently reported. Read More: Energy Alliance Will Switch To PSEG For Now, Including Montclair

Recently, Montclair Mayor Sean Spiller gave an update on the SEA and its search for a new supplier. He wrote:

“You may have already received a letter from PSE&G advising you that as of September 1, your electrical supplier has reverted back to PSE&G. This is a reminder that township residents participating in the Sustainable Essex Alliance had electricity supplied through Energy Harbor, an alternative provider of cheaper and greener electrical content until the 18-month contract with Energy Harbor expired on August 31, 2022. The contract gave us a less-expensive electricity supply, and about twice the green content as that provided by PSE&G. This was the SEA’s second successful contract with an alternative electrical supplier.”

Spiller continued:

“Hoping for a third-consecutive contract, the SEA tested the market in May of 2022 by requesting proposals from third party suppliers for a new energy supply contract. Given the current energy market volatility, the prices received were all significantly higher than PSE&G's utility rates. We therefore concluded that near term, residents are better served PSE&G. In consultation with our consultant, we continually monitor the energy market. Once conditions improve, we will issue another request for proposal. Please stay tuned!”

“In the meantime, you may receive unrelated solicitations by mail and/or by phone for individual energy contracts from other alternative suppliers,” the mayor added. “These are NOT affiliated with the township or the SEA.”

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