Notice of Conclusion of Hamilton Community Energy Aggregation Program (Contract with South Jersey Energy): November 2018
In 2017, the Township of Hamilton launched the Hamilton Community Energy Aggregation, for the purpose of creating purchasing leverage and providing an opportunity for residents of the Township to save money on their electric bills. Since the program’s inception in March 2017, residents have enjoyed prices for power supply from South Jersey Energy at rates significantly below those offered by PSE&G. The contract with South Jersey Energy has a term of 21-months, which is set to expire in December 2018. The contract with South Jersey is estimated to have saved participating residents over a million dollars in aggregate.
With the pending expiration of the contract, the Township 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 Hamilton 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 bids prices at a later date in the hope of receiving better offers.
The Township assures residents that the transition from South Jersey Energy back to the PSE&G tariff in December 2018 will be seamless. This month, PES&G will send notices to residents informing them that service with South Jersey Energy will be ending effective on your December 2018 meter read date. There is nothing further that a resident needs to do. Effective on your December meter read, PSE&G will resume as you power supplier (as they had been prior to March 2017). Starting with your January bill, you will notice on your PSE&G bill that South Jersey power supply charges will be replaced with a line item for PSE&G ‘Basic Generation Service’ power supply.
If the Township receives improved savings from its next bid conducted later this year or early next year and awards a new contract for Round 2 of Hamilton Community Energy Aggregation program, the new contract would likely start in Spring 2019. In such event, eligible residents (all residents except those that have their own solar generating system or their own third party supply contract, or those that are on the program’s ‘Do Not Disturb’ list), will be sent a 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 firstname.lastname@example.org.