Frequently Asked Questions

The following are questions often asked about Community Energy Aggregation.

WHAT IS COMMUNITY ENERGY AGGREGATION?

Government Energy Aggregation or, Community Energy Aggregation as it is more commonly referred, is a program permitted under New Jersey State law and NJ Board of Public Utilities regulations (N.J.A.C. 14:6-6.1 et. seq.) that allows municipalities to pool together residents and conduct a bid for power supply from third-party suppliers, with the aim of obtaining a power supply price that is cheaper than the supply price charged by the electric utility. The State’s rules also allow individual municipalities procure power supply that has greater renewable energy content than the State-mandated minimum ‘green’ content provided by utilities via default supply service, and an increasing number of municipalities have been implementing these types of so-called Renewable Government Energy Aggregation or ‘R-GEA’ programs in order to reduce their carbon footprint. The program is conducted under the oversight of the New Jersey Board of Public Utilities, the Division of Rate Counsel and the Department of Community Affairs.

HOW DOES A MUNICIPALITY START A COMMUNITY ENERGY AGGREGATION?

Under State law and regulations, a municipality must first pass an ordinance authorizing the formation of a CEA program.

How does a municipality select a Community Energy Aggregation program supplier?

Under State regulations, a municipality must issue a competitive Request for Proposals (RFP) seeking offers from electric power suppliers licensed by the New Jersey Board of Public Utilities (NJBPU). The RFP must first be reviewed by the NJBPU and the Division of Rate Counsel.

Under what conditions may the municipality make an award to a supplier as a result of the competitive bid process?

The RFP process consists of two stages. In the first stage suppliers submit qualification documents, and these qualifications are reviewed by the municipality and its consultant. In stage 2 suppliers submit proposed prices for electricity supply to the residents of the municipality. Under State law and applicable rules The municipality is not permitted to make a contract award at a price that is higher than the utility’s price for power supply, unless the power supply procured has enhanced renewable energy content. The municipality will determine whether the level of savings as compared to the utility tariff price are sufficient to warrant a contract award. 

Who is included in the program?

If a contract award is made by the municipality, all residential electric accounts in the municipality are initially included, except for those residents that already have their own third party supply contract, or that have an on-site renewable energy (typically solar) system installed on their property. However, all residents have the option to opt-out of the program, and not be included, if they wish.

If a contract award is made by the municipality, what happens next?

You will receive an Information Package from the selected supplier, providing you with basic information concerning the CEA program contract, including the identity of the supplier, the contract price, length of the contract, and the savings as compared to the utility tariff price. Also, information on how you can opt-out of the municipality’s Community Energy Aggregation program, should you not wish to participate, will be provided.

Does the price vary as energy market conditions change?

No. One of the key elements of CEA contracts is that, unlike some third-party supply contracts that fluctuate with market conditions after an initial ‘teaser’ period, the price is locked in and does not vary with market conditions. 

If I participate in the municipality’s Community Energy Aggregation program, how does this affect my utility bill?

Your electric utility bill includes separate charges for delivery service and for power supply service (i.e., Basic Generation Service). By participating in the program, your electric utility will still read your meter, and you will still receive a single bill from the electric utility. Your bill will continue to include the electric utility delivery charges, but the utility Basic Generation Service charges for power supply will be replaced by the lower charges offered by the Township’s chosen supplier.

Is participation mandatory?

Participation is never mandatory. Residents who do not currently have a third-party supply contract (i.e., take power supply service from the electric utility under the utility’s Basic Generation Service tariff) are included in the initial eligibility pool. However, residents can opt out of the CEA program by mail, phone, email using the information provided in the Information Package or by clicking the Opt-Out button anywhere it appears in this website. If you opt out within the initial 30-day opt-out period, you will not be enrolled in the program at all. Even after enrollment you can opt out any time, effective with the next meter read cycle, and there are no penalties or fees to do so.

Will I receive any other notifications?

Yes. If you do not opt out of the program, several weeks after receipt of the Information Package you will receive a notification letter from your electric utility indicating that the municipality’s selected supplier has enrolled your account for third-party supply and informing you of the date you will be switched to the supplier. This is just an added notification; no further action is required in order to participate.

Will I ever be requested to provide information to a door-to-door solicitor for enrollment in this program?

No. A CEA program does not include any door-to-door solicitation. The selected supplier has the necessary information already, subject to strict confidentiality. If you are solicited by someone, please do not provide them with your information – alert the municipality or the municipality’s energy consultant, Gabel Associates immediately. 

Who do I call if there is a power outage?

This program covers only the power supply portion of your bill. Even if you participate in the program the electric utility will still provide delivery service, and will still be responsible for service reliability and restoration. If the lights go out, you would still call the electric utility. Under this program, nothing changes about your service and reliability.

Will I still be able to receive budget billing (Equal Payment Plan)?

Yes. If you currently have a budget billing plan with your electric utility, the selected supplier is required to provide you with an equal payment plan for your power supply charges. The electric utility will continue to bill a levelized amount each month for delivery service, and the selected supplier will also bill a levelized amount each month (through the utility bill) for power supply. Because the selected supplier’s contract price for power supply is lower than the utility price for power supply, your total monthly budget amount (sum of monthly utility delivery service budget amount and the selected supplier’s budget amount for power supply) should be reduced. You may experience a “true-up” on your bill from the utility prior to enrollment and then again at the end of the program.

What happens at the end of the CEA with the supplier?

There is no automatic rollover. If the municipality decides to continue the program, it will conduct a new competitive bid for a new contract, and you will be advised of the new contract. If the municipality discontinues the program, you will simply be returned to electric utility power supply at the utility tariff price.

If I do not wish to participate in the municipality’s Community Energy Aggregation program, how do I opt-out?

If, after researching the details of your municipality’s specific CEA program, you decide that you do not wish to participate, follow the instructions providing in the Information Package that you receive or that is posted on the municipality’s website, or, you may simply submit your opt-out request through the Gabel Associates website by clicking OPT OUT anywhere you see it on this site.