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New Jersey Government Energy Government Energy Aggregation FAQs

What is Government Energy Aggregation?
Government Energy Aggregation (GEA) is a program that empowers local governments in New Jersey to create large bulk-purchasing groups composed of residential electricity accounts in order to acquire cheaper supply rates. The purpose of the law is to ensure that the benefits of energy deregulation are passed onto residential customers by providing the ability to “aggregate” their accounts within their municipal boundaries in order to obtain bids from licensed Third Party Suppliers (TPS) for cheaper energy supply rates. By aggregating, or grouping, a large number of residential accounts together, economies of scale are created, enabling participating municipalities to achieve greater savings for account holders than could normally have been achieved by the individual customer.

What are the Benefits of Government Energy Aggregation?
The key benefit of government energy aggregation is the ability for residential account holders to save money on their electric bills while experiencing no interference in the level of service provided by the utility that distributes the electricity supply. A large portion of those savings will find their way back into local economies and benefit the entire community!

How does Government Energy Aggregation work?
First, the municipality must discuss and approve an ordinance or resolution giving their government the authority to proceed and construct an aggregation program. Once the ordinance or resolution is approved, the municipality creates an aggregation plan that includes objectives, procedures and process for the program. Using expert energy consultants, the municipality then seeks bids from properly licensed New Jersey TPS to obtain competitive electricity rates for prospective participants. Once a winning supplier has been selected, this supplier will send notices detailing the program to all eligible residential account holders. The letter will indicate the new rate vs. the utility “price-to-compare,” and for how long the rate will stay in effect (term). If the account holder wishes to participate and receive the newly negotiated lower rate, no action is required. If, on the other hand, they do not wish to participate, they must remit the portion of the letter indicating they do not wish to participate within 30 days of the letter’s postmark. This is known as an “opt-out” letter. An account holder will be able to opt-out of the municipality’s program without penalty if they so choose.

How does Government Energy Aggregation impact my current situation and electricity bill?
The impact of government energy aggregation is primarily savings and long term price stability. You will continue to receive a single bill, make one payment, and continue to receive all other services through your utility.

Your electricity bill has three cost components – transmission, distribution, and supply. GEA changes only the supply component of your bill. This is the only portion of your bill which is affected. In the final analysis, approximately 65% to 70% of the electricity bill will be impacted. The other components, transmission and distribution, will not be affected.

If an account holder is already purchasing power from a third party supplier, however, they may be ineligible to take advantage of the GEA rate. Please check the terms and conditions of your existing TPS contract and pay special attention to any mention of early termination fees which may be incurred as a result of ending your supply contract early.

Will the Community Electricity Aggregation program include both electricity and natural gas?
No, the program launch will focus exclusively on electricity.

When will the Government Energy Aggregation program go into effect?
GEA in NJ is a fairly recent municipal law and for that reason, is being very closely monitored via a nine-step process managed by the Board of Public Utilities. Once those steps are completed and the opt-out letter has been sent, residential account holders will have 30 days in which to reply, or opt-out. With consideration given to customer meter read dates, the new supply rate should begin the following month, though the new rate will not be visible on the bill until the following month’s bill for the previous month’s service
.
How will I be notified that my account(s) was successfully enrolled in the Government Energy Aggregation program?
After the bid, each ACE residential customer will receive written notification from TriEagle Energy, and each PSE&G residential customer will receive written notification from ConEd Solutions, on behalf of their respective communities, informing them of the winning supplier price compared to the utility price, and the account holder’s right to opt-out. In addition, after the 30-day opt-out period has ended, each resident will receive a letter from their utility confirming enrollment and that supply service will soon be switched to the winning supplier.

Do I have to participate in the Government Energy Aggregation program if I do not want to?
No, residential account holders can opt-out without penalty. Opt-out notices will be provided via mail by June 11th, 2016 for ACE customers and by June 25th, 2016 for PSE&G customers, prior to the start of the program.

Do I have to sign a contract?
No, there is no contract to sign. The program is designed to be as easy as possible for participants. Accounts are automatically enrolled as long as they are currently receiving supply from the utility. Regular updates will be posted on the municipality’s website as the opt-out period approaches.

Can Non-Residential account holders participate?
No, this program will only be available for residential accounts.

Will I be charged a higher delivery rate?
No, delivery rates do not change based on participation in a GEA program. Utility delivery rates are regulated by the state and the Federal Energy Regulatory Commission (FERC).

Can I keep my Budget Billing program?
Yes, all TPS participating in GEA programs provide budget billing for the supply portion of your bill. Once a TPS is selected by the municipality the TPS will recalculate the budget for each participant using the new lower price. Remember, this portion of the budget only accounts for the supply charge. Your utility will still keep your budget for the delivery charge.

Will my utility need to adjust my budget for the delivery portion of my bill?
You have two options for handling your current budget billing enrollment with Atlantic City Electric:
1. You can choose to cancel you current budget. If you do so, your next bill will include your budget settlement amount – this can be an additional payment amount or a credit, depending on your energy usage. You can find your current settlement amount in the budget billing section of your most recent bill. To cancel your budget, sign into My Account at atlanticcityelectric.com or call (800) 642-3780.

Once you receive your first bill that includes your new supplier charges, you can re-enroll in Atlantic City Electric’s Budget Billing program. If you do so, your next bill will include a budget amount based on Atlantic City Electric’s delivery charges, in addition to your new supplier charges.

2. You can choose to leave your current budget as is. Under this option, your first bill that includes your new supplier charges may be larger than an average bill because it will include the original budget amount from Atlantic City Electric that is based on your supply and delivery charges plus your new supplier charges. On the following bill you receive, your Atlantic City Electric budget amount will be adjusted so that it is based on your delivery charges only. Your new supplier charges will also be included in that bill.

Any budget payment surplus will be applied to your Atlantic City Electric budget balance following the same process that is currently used. You can find your budget balance information in the budget billing section of your bill.

In PSE&G, the budget plan for the delivery portion amount of your bill will be automatically reduced by the utility.

What if I choose to leave the program early and return at a later date?
Participants enrolled in the program may leave the program at any time without any early termination or exit fees. You can re-join the program at a later date (during the course of the term) at the original rate by contacting the TPS.

What happens if I move and want to remain in the program?
If you move within the municipal boundaries of your participating GEA municipality, you may contact your TPS to re-enroll in the GEA program at the original rate for the duration of the term.

What if I have a photo-voltaic or solar panel system?
Having a solar system does not preclude you from participating. If an account holder is receiving any supply from the utility, they are able to participate in the GEA program.

Is there any impact to my Utility by using a Third Party Supplier? Will my Utility penalize me for switching?
No, as a result of energy deregulation law enacted in 1999 in New Jersey, utilities no longer own electric generation assets; the supply of energy was opened up to competition. Customers may now choose from competitive energy suppliers. Your utility will still deliver those supplies through their wires – and respond to emergencies, should they arise – regardless of where those supplies are purchased. Purchasing your energy supplies from a company other than your electric utility is purely an economic decision; it has no impact on the reliability or safety of your service.

Who do I call if there is an outage or issues with my electric bill?
All service and billing questions will continue to be directed to:
• Atlantic City Electric – (800) 833-7476

Does my municipality profit from the program?
No, New Jersey law does not permit a municipality to profit by initiating a GEA program.

Does my municipality pay any administrative fees to develop and operate the Government Energy Aggregation program?
No, your municipality will not pay any type of fees to develop or operate the program.

I am currently receiving offers from Third Party Suppliers promising lower electricity rates. What should I do?
Consumers who decide to switch to a TPS before the GEA program is available should consider several aspects of the existing TPS offer before entering into an agreement. These may include, but are not limited to the following:
1. Price/kWh
2. Contract length: many TPS require a minimum 1-year contract, while only offering a fixed price for the first six months or less. It is important to determine what happens to the rate at the conclusion of this period. Some TPS do not define this in their offers. Depending on the contract term, a customer may be prevented from getting the GEA rate until the contract ends.
3. Early termination fees
4. Pricing terms which take effect at the end of the agreed upon fixed rate (as mentioned above in #2 and/or at the end of the term), etc.
5. One bill or two? Under the GEA program, participants will receive only one monthly bill and make only one payment to their utility. Some TPS do not have this provision, meaning customers may receive their regular bill from their utility for the delivery portion of their bill and a separate bill from their supplier for the supply portion.
What happens at the end of the Government Energy Aggregation supply contract term?
Good Energy will work with your municipal officials to obtain renewal pricing. Similar to the original process, eligible customers will be given the opportunity to opt-out. Upon completion of a GEA program, you will revert to your local utility for your energy supply.

How can I get more information about Government Energy Aggregation?
Your municipality, along with Good Energy, will conduct various public meetings and information sessions that will take place through, and following, bid day. Please check for announcements from your municipality and your local news outlets. Your municipal website will feature all materials related to the GEA program as they become available. You may also call or email a NJ Government Energy Aggregation representative at (855) 777-7414, [email protected], or go to the New Jersey Board of Public Utilities website for additional information.
Important Links
Below is a list of important informational links related to New Jersey GEA:
• NJ Government Energy Aggregation – Program Summary
• New Jersey Board of Public Utilities
• New Jersey Statutes - Title 48 Public Utilities - 48:3-92 Government energy aggregation programs
• Government Energy Aggregation Programs – Sample Forms
How are electricity supply rates set by my utility?
Customers served by New Jersey utilities, Atlantic City Electric Company (ACE), Jersey Central Power & Light (JCP&L), Public Service Electric & Gas (PSE&G) and Orange & Rockland (Rockland Electric Company is NJ division - RECO) receive their supply at a fixed rate, set annually via a series of energy auctions, and regulated by the NJ Board of Public Utilities (BPU).
Good Energy explains Government Energy Aggregation at the 2013 DNV GL (previously KEMA) Energy Conference
The DNV KEMA Executive Energy Conference is the energy industry's premiere event focused on key business and policy issues within the energy field. The 24th Annual Conference was held March 25-27, 2013. Managing Partner of Good Energy, Charles de Casteja, was asked to present on panels and discuss GEA. This is a seven-part series on the event.
Good Energy at KEMA Part 1: A Proven Company in a Bourgeoning Field
Good Energy at KEMA Part 2: Poised for Massive Expansion
Good Energy at KEMA Part 3: Municipal Energy Aggregation is Good Government
Good Energy at KEMA Part 4: Serious Savings in Illinois
Good Energy at KEMA Part 5: Municipal Energy Aggregation – A Decision Made by Communities
Good Energy at KEMA Part 6: Get Involved Early and Set a Clear Message
Good Energy at KEMA Part 7: A Look Ahead to the Future of Municipal Aggregation

Who is Good Energy?
Good Energy, a national energy management and consulting firm, is the industry leader in the design and implementation of government energy aggregation programs, providing energy procurement consulting for over 225 communities. As of 2016, Good Energy is on target to save approximately 700,000 households well over $153 million, with many other communities currently in GEA program development.

For nearly two decades, Good Energy has been a national leader in structuring and implementing cost-cutting energy savings programs. Good Energy now represents thousands of commercial and industrial customers and serves more communities and residential customers than any other energy consultant in the nation. Good Energy supplies the latest efficiency applications to the market and has pioneered a proprietary buying approach that has achieved millions of dollars in savings to households and businesses throughout the nation. Learn more about Good Energy at www.goodenergy.com and follow us on twitter @GoodEnergyUS.