Plainsboro residents might save some money on next year’s electric bill.
The township is exploring a Community Energy Aggregation program, an initiative in which the town would secure electricity from a third-party supplier at a rate cheaper than PSE&G’s price. The township committee plans to introduce an ordinance establishing the program on July 13.
Township Administrator Anthony Cancro says the town plans on hosting an informational meeting for residents this summer, and a public hearing of the ordinance is scheduled for Aug. 10. If the ordinance passes, Cancro estimates the township will solicit public electric supply bids in the end of October, and the township is aiming for double digit percentage savings for residents.
However, if no bid yields sufficient cost savings relative to PSE&G’s rate, the township can walk away. Any switch only applies to the supply portion of a customer’s electric bill, as PSE&G will continue to charge for delivery.
There are more than 9,400 households in Plainsboro. If the township awards a contract to an energy supplier, electrical supply for all residential households will automatically be switched to the cheaper third-party supplier. Those who wish to continue with PSE&G are free to opt-out by contacting the third-party supplier. Residents can also opt out in the event PSE&G supply rates dip below the contract price.
Households already purchasing electricity from third-party suppliers are not included, though they may opt in, and homeowners with solar systems are also excluded. The aggregation program does not apply to commercial and industrial facilities.
Beginning this year the township already aggregated electric supply for all municipal buildings. The yearly municipal electric bill is around $200,000, and according to Cancro the two-year contract with supplier SUEZ electric saves the town 20 percent.
“In the last three to six months, the electricity market has stabilized and it’s worth it to do the auction,” Cancro said.
By comparison, Montgomery Township, which first began its aggregation program in 2013, recently awarded a new 18-month supply contract to TriEagle Energy. Aggregation secured a supply price of 11.217 cents per kilowatt-hour, or roughly 13 percent below the average PSE&G tariff supply price of 12.9 cents per kilowatt-hour.
