Energy Aggregation Program

WHAT IS ENERGY AGGREGATION?

2021 LATEST UPDATES

Montgomery Township ended the 15-month Round III of energy aggregation in September, 2020. While very pleased with the savings of Round III, the Township solicited bids for a new round and did not find market conditions conducive to renewing the program at that time. All customers have been returned to PSE&G. We are investigating the market for any opportunity to offer a Round IV of energy aggregation and cost savings for the residential electric users of Montgomery. – 3-31-21


MONTGOMERY CEA PROGRAM – Previous Notices in Reverse Order

ROUND III Program (2019)

When the Township’s third-party contract with Constellation New Energy expired, residents in the program saw their bills reflect the return to PSE&G for their electrical supply.

For a more detailed explanation of the status, please read this program summary:

Montgomery Community Energy Aggregation Program Round III Update – August 2020

Questions may be directed to energy consultant Gabel Associations at (855) 365-0770.

– 8-11-20

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!

MCEA-Montgomery_WinEnvelope_for 4-8-19 mailing
Mailer Contents:
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.)

Montgomery Energy Aggregation Program FAQ Sheet 

(Delivered early April, 2019 with mailing, 1 pg.)

MCEA  Round III : More Detailed FAQs – Found on Website Only
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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.)

Montgomery Energy Aggregation Program History and Detailed Frequently Asked Questions (FAQs)

Slide Presentation from April 14, 2016 Public Meeting on Round II

TIPS for Small Businesses to Shop for Electric Power Supply

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)

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Round I Program (2013)

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)

MCEA Award Letter to ConEdison Solutions 9/06/13

MCEA Request for Proposal 8/09/13

Press Release: Electricity Contract Awarded, $1.4 M in Savings to Residents Projected 9/12/13

Montgomery Energy Aggregation Program Frequently Asked Questions

Slide Presentation from 3-14-13 Energy Aggregation Public Meeting

Background Info on Energy Aggregation

StarLedger Article on Plumsted Twp.’s Energy Savings


WHAT IS ENERGY AGGREGATION?

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, before the program round begins. In addition, it is always possible at any time to opt-out after the switch has occurred, by giving 30 days notice.

Montgomery Township has been working with an energy consultant, Gabel Associates (855-365-0770) to implement the competitive bidding process that identified a Third Party Supplier to provide power supply to its residents by contract for a fixed rate and for a fixed period of time. The consultant works on a contingency basis and their fees are paid by the awarded bidder.

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!