Community Energy Aggregation is a program that allows local governments to create a large buying group of residential and non-residential electricity accounts in order to seek bids for cheaper energy rates on behalf of their residents, businesses and municipal accounts.
Customers served by New Jersey utilities, Atlantic City Electric Company (AECO), Jersey Central Power & Light (JCP&L), Public Service Electric & Gas (PSE&G) and Orange & Rockland (Rockland Electric Company is NJ division - RECO) receive their power at a fixed rate, set annually via a series of energy auctions, and regulated by the NJ Board of Public Utilities (BPU). By aggregating, or grouping, a large number of residential and non-residential accounts together, economies of scale are created. These economies of scale set conditions for participating Municipalities to achieve greater savings during a competitive bid situation than could normally have been achieved by the individual customer.