Energy Aggregation Program

LATEST UPDATES

APRIL PROGRAM STATUS: Round 2 of the Montgomery Energy Aggregation Program ended in December, 2017 and all participants were returned to PSE&G for their electric supply. The Township started a new bidding process for Round 3 of the MCEA program in March 2018, and accepted bids in April 2018.  The bid resulted in pricing that provided a small amount of savings but, when taking into account an anticipated June 2018 drop in PSE&G’s tariff price for power supply, the amount of savings was deemed insufficient to warrant a contract award.  The Township has kept the bid process open and will be accepting refreshed price offers from suppliers in Summer 2018. If the Township awards a new contract for Round 3 of the Montgomery Community Energy Aggregation program as a result of those refreshed prices, the new contract would likely start in Fall 2018. Intermittently, residents may receive communications from non-program third-party suppliers; however, residents are reminded that any future communication from the Township will come affixed with the Township seal and will involve no solicitation via phone. Learn more by reading the following FAQ document. Thank you!

April, 2018 MCEA Bid Results & Future Round Status – PDF

December, 2017 MCEA Future Round Status – PDF

December 8, 2017 Status of Program Renewal – FAQs – PDF

October, 2017  Status of Program Renewal – FAQs – PDF

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BACKGROUND ON PROGRAM

2016 Program

Montgomery Township conducted a public bid and selected an electrical energy provider for all aggregated residential accounts for an 18 month period of locked rates, starting with the June, 2016 billing cycle.  The selected contractor is TriEagle Energy of Woodlands, Texas.  It is estimated that the typical participant will save $300 during the contract term.  The following letter from Mayor Graham and its attached program summary and the FAQs below explains more details on this very popular program.  The Mayor’s letter was mailed to all residences currently with PSE&G in early April, 2016. There was a public meeting for those with questions held on April 14, 2016.  The slide presentation from that meeting is found below. The 30 opt-out period ended on May 4, 2016.  However, there is a 10 day period to opt-out after that, counted from when PSE&G sends a second notice to your address in May.  Beyond that, accounts can always opt-out during the program with one month’s notice (needed for administration of the change back).

Program Information Package: Letter from Mayor Notifying Residents of 30 Day Opt-Out Period, Program Summary, and Short FAQs – Delivered early April, 2016, 3 pgs.
(Mailed to all residents with PSE&G supply accounts, which are automatically swept into this discount program.)

Montgomery Energy Aggregation Program History and Detailed Frequently Asked Questions (FAQs)

Slide Presentation from April 14, 2016 Public Meeting on Round II

TIPS for Small Businesses to Shop for Electric Power Supply

Program Transition Updates – 2015

MCEA Program Renewal FAQs
(Please note: Montgomery Twp. officials voted 12/04/15 to put out a MCEA bid by spring 2016.  However, whether a new MCEA contract will be procured and the program will continue depends upon bid results, which cannot be predicted at this time. See these FAQs above to find out more. 12/07/15)

Fall 2015 Update on MCEA Program – 11/23/15
(Includes info on discontinuance form letters from PSE&G)

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2013 Program

MCEA Example Letter Notifying Residents of 30 Day Opt-Out, postmarked 10/04/13
(Mailed to all residents with a PSE&G supply account. Example Rate Class RS)

MCEA Award Letter to ConEdison Solutions 9/06/13

MCEA Request for Proposal 8/09/13

Press Release: Electricity Contract Awarded, $1.4 M in Savings to Residents Projected 9/12/13

Montgomery Energy Aggregation Program Frequently Asked Questions

Slide Presentation from 3-14-13 Energy Aggregation Public Meeting

Background Info on Energy Aggregation

StarLedger Article on Plumsted Twp.’s Energy Savings

 

Community Energy Aggregation is a program that allows a municipality to conduct a “bulk purchase” of energy supply on behalf of its residents and businesses, at prices lower than the average utility price, with the possibility of added benefits, such as higher renewable energy content and other programs. New Jersey regulations allow municipalities to take this approach to procure savings on their constituents’ behalf. Montgomery Township officials made the decision to pursue this program in late 2012. Many other New Jersey municipalities are also taking such steps.

There is a very simply opt-out process for those residents who are not interested in joining the program for any reason. Residents will receive two notices by mail with instructions. In addition, it is always possible at any time to opt-out after the switch has occurred, with 30 days notice. See above 9/12/13 Press Release and FAQs for more detail.

Montgomery Township has hired a consultant to implement a competitive bidding process for a Third Party Supplier to provide power supply to its residents.The consultant has agreed to work on a contingency basis and their fees are paid by the awarded bidder.

Montgomery Township is working on its energy aggregation program with Gabel Associates, one of the preeminent energy procurement firms in NJ, and ‘Cooling America thru Local Leadership’ or CALL, a not for profit organization. These two organizations successfully handled the implementation of the first New Jersey CEA program in Plumsted Township last year. See above links to Background Info from CALL & Star Ledger article).

If you have questions, please refer to the Frequently Asked Questions link above on this page. If you have further questions, please contact Gabel Associates at: 1‐855‐365‐0770. Thank you!