2020 LATEST UPDATES
Montgomery Township is winding down a 15-month round of energy aggregation, which expires in September. While very pleased with the savings of Round III, the Township is not renewing the program at this time and all customers will be returned to PSE&G due to current market conditions.
The Township went to the market and bid for a new residential third-party electrical supplier, as has been done before the end of every round. The bids received were not competitive with the current PSE&G rate. When our current third-party contract with Constellation New Energy expires, residents in the program will see their bills reflect the return to PSE&G for their electrical supply. The transition will be seamless and there is nothing that residents need to do.
The Township will check market conditions in 2021 to see if the energy market is more competitive and will rebid if warranted.
For a more detailed explanation of the status, please read this program summary:
Questions may be directed to energy consultant Gabel Associations at (855) 365-0770.
Montgomery Township is in the middle of its most recent round of community energy aggregation, having signed a 15-month contract with Constellation Energy in May of 2019, which will expire summer 2020. Any resident wishing to join the program or having other questions, please call Gabel Associations at (855) 365-0770.
2019 Round III Energy Aggregation Program Start Notice
Montgomery Township is pleased to announce the start of Round III of its Community Energy Aggregation Program, first launched in 2013. Through this program, the Township is able to use bulk purchasing power to obtain competitive proposals from third-party energy suppliers to supply Montgomery residents at a lower price than that offered by Public Service Electric & Gas (PSEG) for its comparable Basic Generation Service.
The Township solicited proposals and selected an electrical energy supplier for all aggregated residential accounts for a 15 month period of non-variable rates, starting with the June 2019 billing cycle. The selected supplier is Constellation New Energy (CNE) of Baltimore, MD. It is estimated that the typical participant will save about $100 during the contract term. The following letter from the Township and its attached program summary and FAQs gives more details on this very popular program. The Township’s notification letter has been mailed to all residences which are currently with PSE&G in early April 2019. The initial 30 opt-out period ends on May 8, 2019. There is also 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, without penalty, with one month’s notice.
Please Note: Do Not Throw Township Mailing Away
Looks Like Below!
Letter from Montgomery Township Notifying Residents of 30 Day Opt-Out Period, with Program Summary, In Spanish
(Letter mailed in early April, 2019 to all residents who have PSE&G supply accounts. All resident accounts are automatically swept into this discount program, unless/until an individual resident opts-out of program.)
(Delivered early April, 2019 with mailing, 1 pg.)
MCEA Round III : More Detailed FAQs – Found on Website Only
HISTORICAL BACKGROUND ON EARLIER ROUNDS OF PROGRAM
Round II Program (2016)
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.)
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)
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)
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!