Residents Returning to PSE&G While Twp Solicits Bids for Potential Third Round in 2018

 

The Township launched the Montgomery Community Energy Aggregation (MCEA) program in 2013, for the purpose of creating purchasing leverage and providing an opportunity for residents of the Township to save money on their electric bills.  Through two rounds of the MCEA program it is estimated that Township residents have saved about $3 million in aggregate.

 

The current contract with TriEagle under Round 2 of the MCEA program has a duration of 18-months, and is set to expire in December 2017.  The contract is estimated to have resulted in about $250 in electricity cost savings for the average participating residence, producing aggregate savings for Township residents of over $1 million.

 

With the pending expiration of the current contract, the Township renewed the Montgomery Community Energy Aggregation, and recently conducted a public bid to solicit a new round of price proposals from independent energy suppliers. Upon receipt of pricing results in the recent bid, the Township determined that the new price offers were higher than the current contract price, and did not produce sufficient savings as compared to the PSE&G tariff price and that, therefore, it was not in the best interest of Montgomery residents to accept a contract at this time. The Township came to the conclusion that the residents' interests can be better achieved by allowing residents to return to PSE&G for power supply at the end of the current contract, and to solicit updated bid prices at a later date in the hope of receiving better offers.

 

We are confident that the transition from TriEagle Energy back to the PSE&G tariff in December 2017 will be seamless. In November, PSE&G will send notices to residents informing them that service with TriEagle Energy will be ending effective on your December 2017 meter read date. There is nothing further that a resident needs to do. Effective on your December meter read, PSE&G will resume as your power supplier (as they had been prior to the inception of the MCEA program).  Starting with your January bill, you will notice on your PSE&G bill that TriEagle Energy power supply charges will be replaced with a line item for PSE&G's 'Basic Generation Service' power supply. 

 

If the Township receives improved savings from its next bid later this year and awards a new contract for Round 3 of the Montgomery Community Energy Aggregation program, the new contract would likely start in Spring 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 (see above) and will involve no solicitation via phone.

Please be aware that while residents are always free to choose their own 3rd-party energy supplier without penalty, suppliers not affiliated with the Township's program may not be able to provide you with the level of savings and consumer protections offered by the Township. Additionally, the terms of a third-party supply contract may interfere with your ability to enroll with the MCEA cost-effectively.

 

In such event, eligible residents (all residents except those who have their own solar generating system or their own third party supply contract, or those who chose to opt-out of previous rounds of the program and expressed a desire to be placed on a Do Not Disturb list), will be sent a Township mailing informing them of the details of the new contract, after which residents would have the choice of opting-out of the new program if they do not wish to participate. Again, no further action will be necessary for residents who want to enjoy supply savings through the program.

 

We appreciate your understanding and look forward to working diligently with our consultant in the coming months to achieve savings for our residents. Should you have any further questions, please feel free reach out to Gabel Associates at [email protected].

 

Here are answers to some frequently asked questions from when the current round began...

• What is Community Energy Aggregation?

Community Energy Aggregation is a program that allows municipalities to conduct a "bulk purchase" of energy supply on behalf of its residents, at prices lower than the average utility price. New Jersey regulations allow municipalities to take this approach to procure savings on your behalf.