Mayor Kelly A. Yaede’s administration recommended Gabel Associates, which was awarded a three-year contract by a 4-1 margin by the governing body Tuesday night.
by James McEvoy, Managing Editor
HAMILTON — The Township Council has authorized Gabel Associates to serve as a consultant to assist Hamilton in implementing an energy aggregation plan.
Mayor Kelly A. Yaede’s administration recommended Gabel Associates, which was awarded a three-year contract by a 4-1 margin by the governing body Tuesday night.
Mayor Yaede first publicly proposed the effort, which aims to realize lower energy costs by aggregating users similar to an economy of scale, during her State of the Township Address earlier this year,
According to Business Administrator John Ricci, the contract was bid out with Gabel being the second lowest bid.
In a township press release issued prior to the meeting, township officials said Gabel Associates was the only consultant to have successfully completed a community-wide energy aggregation in New Jersey.
Additionally, Gabel Associates was the first firm to successfully implement a community-wide or “government energy aggregation” in New Jersey, the first energy agent registered with the state’s Board of Public Utilities over 13 years ago and completed the most government energy aggregations (seven) in the last year, officials said.
According to the press release, Gabel Associates’ list of successful community-wide energy aggregations include Toms River , Plumsted, Monroe, Montgomery, West Orange, Lambertville and West Amwell.
In those communities, residents have realized savings ranging from 10 to 20 percent, according to township officials.
Additionally, the firm is currently implementing government energy aggregation programs in Little Ferry and Colts Neck.
Energy aggregation programs have also been a topic of discussion in Robbinsville Township.
Under the terms of the contract, according to township officials, Gabel Associates would manage the municipal aggregation program, prepare proposal requests for third party power suppliers, ensure compliance with all New Jersey Board of Public Utilities regulations and look to maximize savings for residents and businesses with at least a five percent savings in the energy supply portion of energy of electric bills.
The program allows towns the ability to reduce residents’ and businesses’ energy bills by aggregating customers into one bid to a third party energy supplier to achieve a reduced energy supply cost at prices below what the utility would charge for power supply, according to a press release. Similar to bulk-purchasing, an energy aggregation program provides lower energy savings through economies of scale. State law also requires the energy aggregation price be below utility power supply costs.
The bid will be for only the power supply portion of the bill. Energy would still be delivered to residents and businesses through Public Service Electric & Gas, which would continue to handle billing, account services, and restoration services for all Hamilton customers.
Due to current market conditions that have led to higher natural gas costs at what Public Service Electric & Gas is providing, according to the release, Gabel Associates’ recommends that Hamilton only includes electricity in the program’s initial offering, although the potential to extend the program to gas does remain for future consideration.
Hamilton customers would have an ability to “opt-out” if they do not wish to participant in the cost savings program, although customers who may currently be receiving power from a third party supplier other than Public Service Electric & Gas would be required to “opt-in” to the community aggregation plan.
Councilman Kevin Meara, the lone dissenter, said he was uncomfortable with the fact the program requires residents to opt out.
”I have a concern with that being an opt out program,” he said. “Something this big may be something that should be considered for a referendum to get the public’s support.”
During the public comment portion, resident Dan Keelan shared similar sentiments.
Mr. Ricci noted that the reason for the automatic opt in was to maximize savings based on a larger buying group.
Councilman Ed Gore lauded the administration for pursuing the program, calling it an initiative that all towns should pursue.
”I want to commend the administration on this,” Mr. Gore said. “I think this is an outstanding step that they’re taking to assist the citizens by allowing us to as an aggregate buyer to get a better electric rate.”
In the release, the mayor identified the measure as an effective way to reduce energy costs throughout Hamilton.
”As Mayor, I am continuously looking for ways to save money for our hard-working residents and our local businesses that provide jobs for our citizens; and through energy aggregation, we will reduce energy costs to benefit our entire community,” says Hamilton Township Mayor Kelly Yaede.

