By Charley Falkenburg, Staff Writer
MONTGOMERY The Township Committee is eyeing the state Government Energy Aggregation program that would allow homeowners to reduce their electric bills by essentially bargaining for a cheaper power supplier.
Under the program, the township would be able to shop around for the least expensive power supply and most protective contract for residents, while still using Public Service Energy and Gas (PSE&G) as its delivery company.
The committee, on Jan. 17, passed a resolution giving the Gabel Associates energy consulting firm the go-ahead to see what kind of bids it can negotiate for electricity prices on behalf of Montgomery and its residents. If the committee likes the figures it brings back, it will decide whether to accept the contract and enter the program.
”It is important for the Township Committee to seek new and creative ways to reduce the cost of living in Montgomery,” said Mayor Ed Trzaska. “As such, we are excited about this opportunity and will do our due diligence to see if will work for us.”
If it does work, the mayor estimated savings could be 10 to 15 percent, or $150 to $200, a year for an average household. With 8,000 households, this means Montgomery could save up to $1.6 million.
Last year, Plumstead Township in Ocean County emerged as a pioneer in the energy aggregation program when it awarded its first power supply one-year contract on behalf of its 3,150 households. Its community expects to save more than $400,000 in 2013.
All of Montgomery uses PSE&G and would automatically be participating should the committee choose to join the program. PSE&G would still be servicing and billing residents like always. The only change would be that the supplier the township ends up selecting would replace the power supply line item on the electric bills.
”This is essentially a ‘behind-the-scenes’ process that will not impact our residents, except to lower their bills,” said Mayor Trzaska.
The only people who would not be included in the program are those who have already entered an agreement with a third party supplier. However, they could join too after their individual contract comes to an end.
If homeowners don’t want to participate, they would have the ability to opt out at any time through various ways such as email, postcard, letter or phone call.
”This isn’t Big Brotherism telling everyone to use what power company,” said Steve Gabel, president and owner of Gabel Associates at the Jan. 17 meeting. “There is no intent to force customers to do something they might not want to do.”
If awarded the contract, Mr. Gabel said his firm would be taking a “no surprises approach” to make the community fully aware and informed about the program via mailings, Internet postings, leaflets, public meetings and other forms of communication.
Gabel Associates would not be charging the township and instead would receive $.00095 per kilowatt hour on the overall charges of the supplier the township picks.
Mr. Gabel estimated the program would officially drop in about five to six months after complying with the various state notice requirements to departments such as the Department of Community Affairs and the Board of Public Utilities.
Mr. Gabel also took into account the time needed to sign with PSE&G, conduct public meetings and the notice period for an ordinance.
If the committee signs with the firm, Mr. Gabel emphasized the contract residents receive would have hinges or tricky fine print that tends to be overlooked.
”We will work with your committee to make sure this contract is fully protective of the customer’s interest,” he said.

