Residents Condemn Electricity Aggregation Proposal

A new electricity aggregation proposal was laid out Tuesday before Parsippany residents, who responded with fury, citing “intrusive” intentions and deplorable municipal power.

The township has hired Gabel Associates, Inc. to implement a procurement process for a third-party supplier to provide power supply to Parsippany residents. Their executive vice president, Robert Chilton, attended Tuesday’s meeting of the Township Council to detail the program’s features.

“This plan (The Community Energy Aggregation Program) is implemented under the Government Energy Aggregation Act passed 10 years ago, and the Board of Public Utilities’ rules,” said Chilton. “And under state rules, a township must pass an ordinance to establish this. It has had a first reading, and is under consideration.”

The council is set to consider the ordinance for a final vote at its Aug. 20 meeting.

Residents Could Opt Out

According to Chilton, if passed, the township will release requirements for the proposal, where a third-party supplier would be invited to supply the town’s electricity. It would not serve those residents who already have a third-party supplier.

“Fifteen percent of residents have done their own shopping and have contracts,” said Chilton. “And they can keep their existing contracts.”

Small businesses will also have the option to opt into the contract, different from the residential policy that would require townspeople to opt-out.

“(What we’d do is) buy a bulk of power at a good price,” said Chilton. “A Request for Proposal (RFP) would be put out, and the town would analyze. Then, the most beneficial contract would be awarded, but only if the bid price is below the JCP&L (tariff) price.”

Delivery would still be conducted by JCP&L, and the aim of the project would be to “reduce the price on the power supply part of the bill,” according to Chilton.

If there are no savings, the township will not award a contract. However, if one comes to terms, residents will receive a notification letter, approved by the BPU, shortly after the contract is awarded. It would contain the price and term of the contract, et al.

“There’s estimated savings versus the JCP&L tariff,” said Chilton. “…If you don’t want to be included, you can send back the letter and opt-out, or call an 800-number.”

A part of the comprehensive plan includes a 30-day process for customers to decide if they want to opt-out or not. After that trial period, the supplier takes the accounts and sends them to JCP&L, which then sends out generic letters on account enrollment.

Once entered, the power supply will begin. During the contract term, residents can opt-out at any time, with no penalties or fees incurred.

Also worth noting is that throughout the potential contractual term, the power supplier will continue to provide equal payment plans, to maintain leveled payment structures.

Throughout a potential contract term, residents would still receive one bill; the only difference would come on the line item section of the bill, where the power supply numbers should be lower.

JCP&L, does not manufacture power; it only distributes it along its lines, which is how the utility generates income. They will not, according to Chilton, digress to adding extra costs on customers who decide to defer from the utility’s own electricity purchasing (they currently buy on the wholesale market under state law).

“There are two towns in New Jersey that have done this, Plumsted and Toms River,” said Chilton. “They’re saving 10 to 15 percent on their power bill, or about $180 per year.”

Providing for consumer protection, the contract would allow for a fixed price for the entire term, putting the burden of risk on the supplier, which would factor in a ‘risk premium’ into their bid price.

“Essentially, you don’t have to worry about anything,” said Chilton. “And there’s no automatic renewal. (At the end of the contract), there would be a rebid for a new one. It doesn’t automatically roll over.”

The New Jersey Division of Rate Counsel and the New Jersey Board of Public Utilities would review the project’s nuances, ensuring that they are within the confines of the law.

At the moment, the tentative schedule has the RFP released at the end of September, where a proposal would be accepted in mid-October. Then, the opt-out period would ensue from November to December, where at the end, enrollment would occur. Power would be flowing in January, and the new rates would be reflected on the February statement.

Public ‘Aggregate’ Condemns Aggregation

As Chilton’s presentation concluded, restless residents quickly unglued from the auditorium seats to add their two cents.

“This thing has really frosted me,” said Parsippany resident Steve Kaplan. “I keep saying ‘no, no, no, no’…Well I’m out. Do not pass this. Don’t save me money. I don’t need the government helping me. I said no, now don’t put your hands in this…Stop this ridiculousness.”

Other residents, also distraught over “big government dictating” their transactions, were not at a loss for words.

“I’m concerned about being forced to depend on someone else if I say no!” said another resident. “I’m old-school, I depend on myself. I’ve elected not to go into this. And I’ll tell you right now… I’m out.”

Another resident, Pat Petaccia, said, “I’m upset. I don’t like being sold. And I want to know from the council – did you speak to anyone besides Gabel? Did any third-parties come in?”

Business Administrator Jasmine Lim said, “They (Gabel) are consultants, not a provider. They only make recommendations to towns with who to go with and on what terms.”