Notice of Conclusion of Hamilton Community Energy Aggregation Program (Contract with South Jersey Energy)
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 email@example.com.