New Jersey Town Selects Supplier for Opt-Out Aggregation (Third Aggregation Statewide)

Montgomery Township, New Jersey has awarded ConEdison Solutions a contract to supply the town's residential opt-out municipal electricity aggregation.

The 24-month contract begins in December 2013.

A news release did not provide the rate per kWh for the aggregation. Montgomery Township said that the contract is "projected" to save residents 8.5% on their electricity bills over the 24-month contract term as compared to being charged by PSE&G for power supply. The rate from ConEdison Solutions was described as "fixed," but the term length for the fixed pricing was not explicitly identified.

Montgomery Township said that it is only the third community in New Jersey, and the first community in the PSE&G service territory, to take advantage of government opt-out aggregation legislation and execute a power supply contract on behalf of its residents. Plumsted Township was the first to go forward last year, followed by Toms River Township. A number of other towns in PSE&G, including West Orange Township, are moving forward with aggregations, Montgomery Township said.

A 30-day opt-out period is provided. Once enrolled, "residents will be able to opt-out at any time without penalty," the township said

Gabel Associates, Inc. assisted the township in the aggregation procurement process.

The township said that it also issued a competitive bid solicitation for businesses which opted in to the program by a deadline. "Unfortunately a small pool resulted which weakens pricing competitiveness. The Township therefore did not award a contract for participating businesses and has decided to rebid the business accounts portion shortly," the town said.