The Town of Newton’s Town Council heard a proposal from representatives of Good Energy on Monday, April 8. The presentation surrounded potential savings from government energy aggregation, which is a way to save consumers money by pooling their collective energy needs to negotiate better rates.
Most residents of the Town of Newton have JCP&L as their utility, or delivery company, for electricity, but under New Jersey’s energy deregulation law, consumers have the right to change the supplier of their energy. Because of this, consumers may choose from up to 57 different energy suppliers and 67 energy marketers to find the best rates. No matter what company supplies the energy, JCP&L will continue to deliver the electricity.
Right now, most residents receive solicitation from all of these potential electricity suppliers and marketers. These solicitations make claims about their rates in comparison to the rates of their competitors, and offer lock-in periods of different lengths. Weeding through these offers can be confusing and difficult for residents. Aggregation would allow residents to receive the best rate without the headache of contacting each company.
“You are going to get the best price for the best contract, and you don’t have to do it if you don’t want to,” said Philip Carr, one of the Good Energy representatives. He added, “There is no easier way for Newton Township (sic) to save their residents $400,000 or more, than in energy aggregation.”
“You are going to create an additional choice for your residents,” Carr explained, should the Town of Newton aggregate. This will “create an additional choice for your residents.”
Energy aggregation is a growing concept in New Jersey, and Carr estimated savings of over $18 million dollars a year for 500,000 households.
If you would like more information about municipal aggregation, click here. For the full article, see below.