By Charley Falkenburg, Staff Writer
MONTGOMERY Homeowners could collectively share about a quarter of a million dollars in electric bill savings should the township participate in a local energy savings program that would allow it to shop for a cheaper, third-party energy supplier.
However, the bids from suppliers will be the determining factor of actual savings or whether the township will enter the program at all.
”No savings, no contract, end of story,” said Bob Chilton, the executive vice president of consulting firm Gabel Associates. “The law doesn’t allow the township to award a contract that’s higher than what the utility charges, nor does it make sense.”
With the committee’s approval, Gabel Associates has invited all third-party electric suppliers about 60 statewide to make their best offers. Last Thursday, Mr. Chilton met with about 35 residents to talk about the program and how it would impact residents and businesses if the committee awards a bid.
Everyone would automatically be initially included in the program, except for businesses as well as residents who already have their own third-party supplier contract. However, residents are able to opt in or out at any time without being hit with any penalty fees. Businesses that want to participate also have to opt in and would receive a different price and contract than residents. So if the firm gets good bids for residents, but bad ones for businesses, a contract would only be awarded to the residents and vice versa.
”The point being if businesses are included, it won’t affect the price the residents pay it’s a separate deal,” emphasized Mr. Chilton.
Besides reaping the savings, the only other difference people would see on their PSE&G electric bill would be a line item citing the third party company. PSE&G will still continue to provide service and repairs to people just as it has always done in the past.
The Township Committee has been flirting with the idea of participating in this program for months. If it participates, it would join energy aggregation pioneer Plumsted Township in Ocean County. Last year Plumsted became the first municipality in the state to award a contract to a third-party energy supplier out of New York, which is expected to save the average homeowner about $160 a year.
Township officials estimated homeowners could see up to 15 percent in savings, or about $150 to $200 shaved off an average household’s electric bill per year.
”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. “We are excited about this opportunity and will do our due-diligence to see if it will work for us.”
If the township is able to find a supplier with a lower energy price than PSE&G, an ordinance would be up for adoption at the March 21 committee meeting to officially form the program. The committee is also responsible for crafting the contract, which is being tailored to the community.
”Based on feedback from the meeting, we are going to ensure all bidding companies offer a payment plan option like PSE&G and also ask for various amounts of renewable energy levels to see how that impacts the price,” said Mayor Trzaska.
Under the estimated timeline, the proposed contract would go to the state’s Division of Rate Council and the Board of Public Utilities for review, the township will put out the competitive bid process in May and the initial 30-day opt-out period would start in June after residents receive a notification letter reminding them the program is starting.
”For whatever reason you decide you don’t want to be included, you can get out at any time,” said Mr. Chilton. “They have to let you out, no questions asked it’s literally that simple.”
In the best case scenario, service from the third-party supplier would begin at the end of the summer. If folks weren’t able to attend last week’s presentation, they can watch it online on the township website, www.montgomery.nj.us. The township website has a FAQ sheet about the program that is continually being updated.

