By Jennifer Kohlhepp, Managing Editor
The township has created an energy aggregation program in hopes of saving residents and businesses money.
An ordinance to officially create the program passed in a 4-1 vote at the Township Council’s Tuesday night meeting. Councilman Kevin Meara cast the sole vote against the measure after a public hearing during which some residents complained that the ordinance basically forces them into changing their electric supply provider.
”I still say it’s a bad idea for the government to interfere with the personal lives of every individual in this township,” resident George Papp said. “This is nothing but a big gamble. If I want to gamble, I’ll go to Atlantic City.”
The ordinance gives the township the ability to bulk-purchase electricity from a third-party supplier. First, the township’s energy aggregation consultant, Gabel Associates of Highland Park, has to develop and submit documents to both the New Jersey Board of Public Utilities and Rate Counsel this summer. Then, a special public information session for residents, as well as the bid process to award the program’s contract to a third-party energy supplier would take place in the fall. Following opportunities for residents to opt-out of the program, the service and its energy savings would likely begin in either the late winter or early spring of 2015. The exact timing will be determined by monitoring energy market conditions and identifying the best opportunity for achieving cost savings, according to the mayor’s office.
When casting his vote, Mr. Meara said his issue with the program is that it is an opt-out program.
”It shifts the burden onto the homeowners,” he said.
Since the measure passed, he said he would like the township to notify residents that they can opt-out of the program through certified mail.
”If (the letters) come back, they should be opted out automatically,” he said.
Council President David Kenny said the state legislature decided to make the energy aggregation program an opt-out program through legislation.
”If the proposals come in and we don’t like them we don’t have to go with it,” Council President Kenny said.
Council Vice President Dennis Pone said Gabel Associates is guaranteeing “it to be a lower rate than what PSE&G currently offers.”
Residents in seven towns across New Jersey including Plumsted, Monroe, Montgomery, West Orange, Lambertville, West Amwell and Toms River already save between 8.5 and 18.5 percent on their energy bill supply costs thanks to energy aggregation programs, according to the mayor’s office.
Olivia Corkedale, a representative of Gabel Associates, said the bids usually come in 5 to 15 percent lower than Public Service Electric & Gas (PSE&G) retail rates.
She also highlighted many regulatory safeguards designed to protect residents and other program benefits, which include state requirements that contracts be sought through a public, competitive bidding process and that energy supply costs must be equal to or less than utility prices. Hamilton will only enter into a contract if the prices achieved are below regular PSE&G retail rates. Bids will only be accepted from third-party power suppliers that are licensed with the state of New Jersey. Residents are free to opt out of Hamilton’s energy aggregation at any time, with no exit fees or penalties assessed.
During the contract (likely to last between 12 to 24 months) residents’ energy supply rates will be fixed and guaranteed. There is no automatic “rollover” of the contract. Following the end of the initial contract, a new bid would be issued, allowing the township to re-test the competitive marker and allowing residents yet another opportunity to opt-out should they choose. Additionally, the program should have no effect upon existing budget billing customers or income-eligible assistance program recipients, according to Ms. Corkedale.
Because the program only applies to energy supply, the delivery or distribution of energy will remain, as it is today, through PSE&G. Residents will continue to receive monthly bills from PSE&G and will still contact PSE&G regarding service problems (power outages).
When asked what her company gets paid for working with the township on its energy aggregation program, Ms. Corkedale said .00049 dollars per kilowatt hour.
”It’s far less than a penny,” she said. “We are paid by the supplier, not the township.”
In voting for the ordinance, Council Vice President Dennis Pone said as a councilman his main job is to look after the budget and save money. He said he does agree that opting out has an un-American twinge to it.
”But in this case…you do nothing and save money. If you opt out you lose money,” he said.

