Residents Save On Electric Bills Through Energy Aggregation Program
By Frank Sinatra, AAP Editor
In 2016, residents of Pennsauken enjoyed electric rates lower than that of Public Service Electric & Gas (PSE&G), thanks to a cost-saving energy aggregation program put in place by the Township. When that program ended in 2017, the Township continued to look for an opportunity to restart the popular initiative. With the help of Concord Energy Services of Voorhees, N.J., the Pennsauken Township Energy Aggregation Program will start up again beginning in July.
“We’re thrilled to be able to offer these energy savings to our town,” says Pennsauken Mayor Jack Killion. “These reduced rates solely benefit our residents that are eligible for the program. Our municipal government is not receiving any type of financial consideration for participating.”
The new rate of $0.11999 per kilowatt-hour is 6 percent lower than that of PSE&G. On average, residents will save about $63 during the program’s 16-month contract period.
More than 11,600 households are eligible for the cost-reducing program, part of a state-supported process called government energy aggregation (GEA). Under GEA, state-licensed energy suppliers bid their lowest rates in an online auction held by Pennsauken on March 26, 2019. The winning bid came from Constellation NewEnergy, Inc., an Exelon company and a leading competitive energy company providing power, natural gas, renewable energy, and energy management products and services for homes and businesses across the continental United States.
Public meetings about Pennsauken’s GEA program will be held on Thursday, May 9, at 4:00 p.m. and again at 6:30 p.m., in the second floor meeting room of the Township’s municipal building, 5605 N. Crescent Blvd. These meetings will provide additional information and answer residents’ questions about the program. For those unable to attend, a special information session will be broadcast via a Facebook Live video on Wednesday, May 15, at noon, via the town’s Facebook page, https://www.facebook.com/PennsaukenTwp. Residents who log in will be able to have their questions answered in real time. In addition, the video will be rebroadcast on Channel 19 Pennsauken Television.
“While our town has gone through this process before, both the Township and Concord Energy Services will do our best to inform residents about the benefits of the energy aggregation program and answer their questions,” says Mayor Killion. “Be sure to check your mailbox for a mailer that will explain the program in detail.”
Created by the N.J. Board of Public Utilities and the Rate Counsel (formerly known as the Ratepayer Advocate), GEA is designed to help people take advantage of energy deregulation and cut energy costs. “Aggregation” refers to customers who form a group to purchase energy.
There is no cost for this program to the municipality, residents, or taxpayers. Pennsauken’s 16-month GEA program will run from July 2019 to November 2020. Other towns across the state are running similar GEA programs.
PSE&G will continue to deliver residents’ power, handle customer accounts, respond to outages, and maintain service. The only changes are the energy supplier (the company that provides the energy), the lower energy rate, and the supplier information on participating residents’ utility bills.
Residents who are on a budget bill program through PSE&G and wish to participate in the energy aggregation program will be automatically enrolled in a budget bill plan through Constellation NewEnergy, Inc. Their budget bill will be split into two parts. The supply portion will be paid to Constellation, while the delivery portion will go to PSE&G. Both will be listed on your PSE&G bill, and, you will continue to only pay PSE&G for both. You will not need to issue separate payments.
Those households that are already enrolled with a third party energy supplier are not eligible to participate in the program. Residents that have solar panels on their home are not initially included in the program, but, may opt in at any time at their discretion.
Residents will receive information packets by mail, explaining the program in detail, by early May. Any eligible resident who does not wish to participate in the rate-reducing program may opt out from May 1-30 (before the change occurs), or at any time thereafter, without any fee or penalty. To opt out, residents can complete and mail back a response card they will receive in the mail; call (877) 292-3904; or visit NJaggregation.us/ptwp.
The new energy rate is fixed for 16 months, with no early cancellation fees, penalties, or fine print. This means that the rate is not a variable rate, unlike some other third-party contracts that are being offered. At the end of this 16-month period, another auction could be held.
All residents who have not already switched to a different (third-party) energy supplier will be automatically included. Anyone who has already chosen a third-party supplier will not be included in the program and will not receive any letters for opting out. If a resident wishes to join at a later date, they may call (866) 688-5197 or visit NJaggregation.us/ptwp to do so. This program is for residential customers only and businesses are not automatically enrolled.
For more information, please visit NJaggregation.us/ptwp.
