An energy aggregation initiative is being touted by the Plumsted Municipal Utilities Authority (PMUA) as the next step in a push to make Plumsted Township more economically and environmentally responsible.
Known as the Plumsted Community Energy Aggregation (PCEA) plan, representatives of the PMUA, Cooling America through Local Leadership (CALL) and Gabel Associates reviewed details of the plan on June 4.
“[PCEAis] a program made available through the state Board of Public Utilities, which basically takes energy and natural gas savings to the next level,” PMUA Executive Director Peter Ylvisaker told the Tri-Town News.
According to the plan, the township will buy energy for the entire community in bulk from a third party supplier, effectively driving down energy costs for municipal, commercial and residential buildings.
“By basically bundling [the township’s energy], we increase our buying power … so we can get better rates,” Ylvisaker said. “We are currently looking at electricity only at this juncture.”
Although the township will be buying its energy from a third party, the distribution of electricity will still be handled by Jersey Central Power & Lighting (JCP&L), which means Plumsted will not have to install special equipment to begin the program.
“JCP&L is still the company that sends you the bill,” Ylvisaker said. “They are not generating the power, they are supplying the power through their power lines, so basically it’s a seamless process.”
All residents in the township will be automatically enrolled in the PCEA, while business operators will have a 30-day window to sign up for the program beginning next month.
Any residents who wish to use a different energy supplier can opt out from the municipal program. Anyone currently using a third party for their energy needs will be able to join the PCEAat the end of their existing contract. Following the 1999 Energy Deregulation Act, which was passed in an effort to encourage competition for the benefit of energy customers, only five states allow for government energy aggregation.
New Jersey lawmakers paved the way for future government energy aggregation efforts with the passage of the 2003 Government Energy Aggregation Act.
Ylvisaker called the PCEA a “natural progression” of the township’s trash and recycling programs from July 2011, which gave residents an incentive to recycle.
“We saw what we could do [with those programs] and we did our research,” he said.
If the plan is a success, Plumsted would be the first municipality in New Jersey to implement an energy aggregation plan.
Municipal officials could also explore potential shared services agreements with neighboring towns to lower costs even further.
“Hopefully, other towns will see the benefit of what we did here,” Ylvisaker said. “The more we have in the pool, the better the rate is going to be for everyone.”
The PCEA is currently in the bidding phase to find its third-party supplier. As soon as a bid is accepted, the process to fully implement the plan could take less than 30 days.
“I think this is a very straightforward program and the intended result is to lower everyone’s electricity costs,” Ylvisaker said. “It should be a win-win for everyone.”