Moorestown Considering Rejoining Energy Aggregation Program

MOORESTOWN, NJ — Moorestown is considering re-entering an energy aggregation program that was designed to save residents money on their electric bills.

Moorestown was one of 10 towns in the county that entered into the program when it launched in 2016. Together, the townships involved in the program designated third party supplier Trieagle as the energy supplier for all the households in the 10 municipalities.

In December 2018, though, the program was cancelled due to changes in the energy market and changing regulations adopted by the state and federal governments. These changes made it impossible for Trieagle to provide rates that were lower than the default rates set by PSE&G.

In the three years the program was in existence, it saved county residents about $1.1 million, a representative from the county told Moorestown Council during a workshop meeting on Oct. 21.

County officials are looking to relaunch the program, and council has been asked to decide if it wants to participate. Beyond the rates, there were also issues of double-billing and the supplier not notifying residents of when the opt-out period was.

All residents are entered into the program when a municipality joins so that those marketing the program to a potential supplier can give some idea of what the market looks like. Residents then have certain periods in which they are able to opt-out of the program, if they like.

When there was double-billing, it was the result of a missed bill the previous month, the representative said. Residents often didn’t notice when they weren’t billed, though.

The county has been working with third-party suppliers on how to avoid missed billings in the future and how to improve communications.

Guaranteeing savings isn’t as easy, the representative said. The state sets their base rate for the year every June, but PSE&G’s rate fluctuates for other reasons that aren’t as easy to see coming, the representative said.

Under the program, residents continue to call their local electric company in case of an outage, and are generally never supposed to notice any change.

The program price is determined through an online auction approved by the New Jersey Department of Community Affairs. That price remains flat for the duration of the contract, which could be up to two years.

All third party suppliers are eligible to bid on the program, provided they are bonded and licensed by — and are in good standing with — the New Jersey Board of Public Utilities (BPU).

Council didn’t commit to a response either way, but a town hall meeting to explore the issue further is possible.

Should council ultimately decide to participate in the program, it will be asked to pass an ordinance or resolution at a future meeting. Commercial Utility Consultants will then prepare bids/documents to send to BPU and Rate Counsel for review. The energy auction would then be held, and education/outreach to customers would take place. The process repeats at the end of the contract.