Energy Aggregation in 2020

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Background:

New Jersey adopted energy deregulation in 1999. This separated the electric market into two parts: the supply (or generation) of the electricity, and the delivery of that electricity to customers.

Since 1999, PSE&G and JCP&L have been responsible for delivering electricity, not generating it — and they make all of their money from the delivery of electricity.

Energy deregulation does not affect who delivers electricity to a customer’s home—that remains PSE&G or JCP&L—but gives customers a choice of where they get their electric supply.

For more detailed information on the history of energy aggregation, please click HERE.

Electric

Background:

New Jersey adopted energy deregulation in 1999. This separated the electric market into two parts: the supply (or generation) of the electricity, and the delivery of that electricity to customers.

Since 1999, PSE&G and JCP&L have been responsible for delivering electricity, not generating it — and they make all of their money from the delivery of electricity.

Energy deregulation does not affect who delivers electricity to a customer’s home—that remains PSE&G or JCP&L—but gives customers a choice of where they get their electric supply.

For more detailed information on the history of energy aggregation, please click HERE.

Electric billing entities will remain the same:

If Hopewell Township enacts energy aggregation, customers will continue to be billed and serviced by PSE&G or JCP&L. Customers will continue to call their current utility for power outages, billing questions, or other problems. Nothing will change on that end.

Currently, electric rates are set by the New Jersey Board of Public Utilities:

Today, the State of New Jersey sets electric rates once per year. The New Jersey Board of Public Utilities (BPU) holds an auction every February, and New Jersey utility companies set rates resulting from that yearly auction. This is called the Basic Generation Services (BGS) auction.

With Energy Aggregation, municipalities and not the State have more control over rates:

When utility companies enter into a statewide auction, they have to account for factories, large sports arenas, and other big peak energy users. Communities like Hopewell Township are largely residential and have a predictable electric load. That means energy companies participating in auctions at the local level are generally able to offer lower rates than companies participating at the state level.

Lower rates save residents money:

Energy Aggregation is designed to save customers money. The Township’s energy consultant, Concord Energy, estimates that the average household in the Township would save up to $150 - $200 per year, based on its experience in other municipalities.

State law protects consumers:

The energy aggregation program is governed by state law (N.J.A.C. Title 14:4-6.1 (2012)) and has a number of consumer protections. These protections are different than those that apply to an individual customer entering into an agreement with a third party electric supplier.

While state law requires residents to opt out of participating in a community energy aggregation program, residents can easily opt out at any time—and if they opt out and want to rejoin the program, they can do so at any time as well.

Detailed information about how to opt-in or opt-out will be mailed to residents if the Township moves forward with the program.

Any Energy Aggregation program considered by the Township could offer residents green energy options:

For more detailed information on this subject and others, please visit the Frequently Asked Questions by clicking HERE.

For the presentation to the Hopewell Township Committee, click HERE.

For videos of the presentation to the Hopewell Township Committee, click HERE.

We have endeavored to answer the numerous questions we have received on Energy Aggregation during our public meetings in 2019.  Please see our frequently answered questions section above for more information. 

No energy company will ever knock on your door or call you about this program. If you receive a phone call or a visit from an energy company, it is not about this program. Please report any concerning calls or visits to the Township.

If we have missed something, or you have an additional question, please feel free to submit it in the box below. We will continue to update this page and add additional answers and other pertinent information on Energy Aggregation in Hopewell Township to this page.

For additional information, please check our resource guides available for download from this site or from HERE.

A friendly reminder that all questions and other posts on this page are subject to our rules of etiquette.  Let’s work together to promote a civil dialog and to build a stronger and greener Hopewell Township.


Questions and Answers

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    We being in the "Energy Aggregation in 2020" negate rebates from various state and private sector business for energy saving home systems and appliances? If yes will "Energy Aggregation in 2020" be offering the same type of rebates?

    Earl asked 6 months ago

    No, energy aggregation will not impact New Jersey Clean Energy Program rebates from energy saving home systems and appliances.

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    What about those of us who have solar energy?

    Jcarol1406 asked 6 months ago

    Customers with solar panels will not be automatically opted in to the program, because net metering is complicated and unique to each solar customer's arrangement.  Should a solar customer want to opt-in, Conord Energy will work with you to make sure it makes sense for you and to help with the process. 

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    Will the bill payments of electrical usage be only the full amount of monthly usage or will there be equal payment plans similar to other providers?

    Earl asked 6 months ago

    There will be an option to have an equal payment plan, or "budget billing," as it is also called. If the Township Committee decides to move forward, you will receive information on how to set this up in the mail with the explanation of the program and the ways to opt out.

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    What is the impact on homeowners who have solar panels? In particular, what is the impact on anniversary months for net metering? It is my understanding that the anniversary month would become the date of the contract with the new supplier. If that is the case, then it could have a significant negative impact on solar customers net metering.

    Greg asked 6 months ago

    Customers with solar panels will not be automatically opted in to the program, because net metering is complicated and unique to each solar customer's arrangement.  Should a solar customer want to opt-in, Conord Energy will work with you to make sure it makes sense for you and to help with the process.