I would like to clarify some confusion that was evident in a letter to the editor in the September 26 WW-P News (from former school board president Hemant Marathe). The letter mixes two similar but different energy purchase programs. Community Energy Aggregation is purchasing the supply of energy (electric or gas) from an alternative supplier to the default or franchise supplier (PSEG or JCPL) through an open, public bid in the marketplace. The Community Energy Aggregation would include all residential customers not currently contracted to an alternative energy supplier and businesses that choose to join the bid. Municipal Third-Party Energy Purchase is similar but only for the energy used by municipal facilities.
The meeting held Thursday evening, September 18, with the four municipalities was to discuss Community Energy Aggregation and, more specifically, the potential for several local communities to cooperatively join together as a larger aggregation in an effort to achieve the best price in the market.
The potential Municipal Third-Party Energy Purchase that West Windsor Township has been investigating for township facilities only, was not the focus of the September 18 presentation. The municipal program has been presented and discussed at public West Windsor Township Council meetings since February of this year. The contract that West Windsor is considering is only for the municipal usage.
Both community aggregation and municipal purchase can be achieved with a larger cooperative. This is what the local school district and many other school districts have done. West Windsor is exploring both the community and the municipal purchase through several cooperatives. However, the municipal cooperatives will be re-bidding for energy purchases mid-2015 so West Windsor is considering a bid on its own for the six-month period ahead of the 2015 cooperative bidding.
The purchase of energy supply through a third-party offers the potential to save money and increase “green” or renewable energy use. These are the two reasons to consider these programs. New Jersey de-regulated the energy industry to create a market of choices that would reduce the dollars spent on electricity and promote alternative energy production.
The West Windsor Environmental Commission, together with township staff, has been monitoring third-party purchase of electricity for municipal use as well as community use for some time. Other communities have participated in such programs for the past few years. The township staff submitted a recommendation to the Council regarding the various options and opportunities in February, 2014.
This past summer the township staff arranged for an energy consultant to make a presentation to the Council explaining the history and elements of the programs. Based upon feedback from the Council, the staff has recommended that West Windsor enter into an agreement to hire a consultant to conduct a no-risk, open public bid, for the supply of electricity for the municipal facilities only. This does not include the entire community.
It was also suggested that purchasing “green” renewable energy would impose higher costs upon residents without their consent. This is not correct. First, residents currently have a choice to purchase their supply of energy from many third-party sources and, if a resident has already made such a choice in the market, they are automatically excluded from any township-wide community aggregation program unless they opt-in. Second, residents may opt-out of any township-wide community energy aggregation program and remain with their current provider.
As far as “green” or renewable energy is concerned, choosing a bid with a requirement for a higher percentage of electricity produced by renewable sources like wind or solar may not be the cheapest option, but the township would only enter into such a contract if savings are achieved over the default purchase through the local utility. Higher costs would not be allowed.
It is correct that the WW-P school district has been participating in a cooperative to purchase electricity supply from a third-party. West Windsor has been and is exploring the potential of joining the same or other cooperatives for the municipal facilities. However, it should be noted that regulations do not allow a township-wide community aggregation to be added to the school district account.
West Windsor township will continue to carefully explore options and opportunities available to the community to reduce expenses and sustain a cleaner environment.
M. Patricia Ward
Director, Community Development
West Windsor
