December Energy Aggregation Program Update

Posted on December 27, 2017

Summary – 

Round #2 of the Montgomery Community Energy Aggregation Program is coming to its close this month, as was planned.  Montgomery Township officials had great feedback from residents and therefore wish to pursue a new round (contract period) for this electricity cost-saving program. To that end, on December 7th we accepted refreshed prices from potential electricity vendors towards establishing a new contract period.  Unfortunately, the pricing offered would not yield sufficient savings versus the projected PSE&G tariff pricing for the same future period – the potential savings were only 4%.  Meanwhile, PSE&G’s prices have fallen during our current round from 12.9 cents per kilowatt hour to 12.234 cents at this time, so that TriEagle’s fixed 11.2 cent/kwh price, ending this month, is currently only a 9% savings vs. 13% when the round began in June of 2016. 

While it is more difficult to beat PSE&G’s tariff pricing right now, the good news is that this is due to conditions which have allowed their pricing to improve.  As was always anticipated, all customers who participated in this current (2nd) round of the MCEA Program are being automatically returned to PSE&G for their service this month. No action is required on your part.  However any electricity customer is free to shop and choose their own supplier under current State rules (read more below).

We cannot predict future market conditions, but Montgomery Township intends to put out a bid again in the spring in an effort to contract with an acceptably-low fixed rate supplier for a new period, which could begin in summer or early fall of 2018.   Please read further details below.

Originally Posted 12/09/17



The current 18-month contract with TriEagle Energy under Round 2 of the MCEA program is set to expire in December 2017. The contract is estimated to have saved $250 in electricity costs for the average participating residence, producing  total savings for Township residents of over $1 million.

With the approaching expiration of the MCEA-Round 2 contract, the Township renewed the Montgomery Community Energy Aggregation in Summer 2017 and conducted a public bid to solicit a new round of price proposals from independent energy suppliers. The Township initially took bids for a new contract back in August 2017. However, the Township determined that the price offers received in August were higher than the current contract price, and did not produce sufficient savings as compared to the PSE&G tariff price and that, therefore, the Township would defer award a contract and instead accept refreshed bids later in the year.   On December 7th the Township accepted refreshed prices for a new contract. The refreshed prices did not improve from those received back in August; therefore, the Township did not award a new contract and 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 start a new bid process sometime in the first quarter of 2018.

The transition from TriEagle Energy back to the PSE&G tariff in December 2017 should be seamless. In November, PSE&G sent notices to residents informing them that service with TriEagle Energy will be ending effective on your December 2017 meter read date.  This was simply a notification, and there is nothing further that a resident needs to do. Effective on your December 2017 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.

The Township, in consultation with its energy consultant, will monitor market conditions for indications that the opportunity for savings has improved, and will issue a new bid for Round 3 of the MCEA as early as February or March 2018, conditions warranting.  If a new bid is issued and the Township awards a new contract for Round 3 of the Montgomery Community Energy Aggregation program, the new contract would likely start in Summer or early Fall 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 and will involve no solicitation via phone.

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 with 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

[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 be enrolled with the MCEA program automatically and cost-effectively.]



Source: Gabel Associates