Environmental Commission Recommends that Township Committee Explore Energy Aggregation for Residents
After considerable analysis, the Environmental Commission has recommended that the Township Committee explore an energy aggregation program for the Township. The Township Committee passed a resolution to that effect at their meeting 11/12/2020. The Commission found that such a program could save residents money on their electric bills while increasing the percentage of renewable energy available to them.
Energy aggregation became possible with the deregulation of the New Jersey electric utility industry, which separated electric generation, transmission and retail distribution into in dependent businesses. Energy aggregation allows the Township to pool all resident electric accounts to negotiate with a third-party electricity generator for a more favorable rate than the rate offered by JCP&L. Residents would get their electricity from another source but JCP&L would still distribute the electricity to each resident’s house, with no change to the resident’s monthly bill format. JCP&L would still maintain and provide repair to the Township’s local electric grid.
The contract negotiated by the Township could also afford residents an option for a higher content of renewable energy than that supplied by to them by JCP&L, thus reducing the Township’s carbon footprint. The Township may enter into the energy aggregation contract on a stand-alone basis or join with other municipalities for greater scale and bargaining leverage.
There would be no incremental cost to participate in the Township’s energy aggregation program and residents could opt out from participation. Please view the presentation below to find out more on energy aggregation.