What is Energy Aggregation?

Municipalities in New Jersey can establish a Government Energy Aggregation program to aggregate the energy requirements of customer accounts so that the participating customers can purchase electric supply from Third Party Suppliers at prices lower than the average utility price, with the possibility of added benefits such as higher renewable energy content. For more information you can visit https://nj.gov/njpowerswitch/gea/

What is Franklin Township’s 2022 Ballot Question? [verbatim from ballot]

Shall the ordinance submitted by the Township Council providing for the establishment of a Community Energy Aggregation program by the Township of Franklin that requires the Township to go out to bid for electric energy for all Township residents and allows residents who do not want to participate in the program to opt out and stay with their current electric

• The bulk purchase agreement will only be permitted if the savings to residents is 5% or more.
• The energy purchase shall be comprised of renewable electricity in an amount at least 10% higher than the Renewable Portfolio Standard, which is the percentage of renewable energy required by the State of New Jersey.
• As required by State law, the bulk purchase of renewable energy by the Township for residents is on an opt out basis, meaning all residents will be enrolled unless they choose to opt out, which can be done at any time.
• Residents will also have the ability to select a 100% clean renewable electricity program.

What would a yes vote on Franklin’s 2022 Energy Aggregation Ballot Question Mean? [verbatim from ballot]

A yes vote on this question would cause the Township to establish a Community Energy Aggregation program that would allow the Township to leverage the many residential households in town to contract with an energy supplier to save at least 5% on electricity that is produced with a minimum of 10% more renewable energy than required by the State. Once adopted, State law requires all residential customers to automatically be enrolled in this less expensive and cleaner electricity, but residents will have the option to "opt out" if they choose before the program begins, or at any time with 30 days notice. Separate and apart, if approved, residents could choose a 100% clean renewable electricity product by opting "in and up" which may or may not have any comparative savings.

Will I still be a customer of Public Service Electric and Gas (PSEG)?

Yes.  PSEG will continue to deliver your electricity and you will be billed at the regulated delivery rate.  PSEG will continue to provide all emergency and safety services, as well as meter reading, billing, and service restoration.  You will continue to receive only one bill each month from PSEG, and you will continue sending your payments only to PSEG.

How much can I expect to save from my PSEG bill?

For the first year of the contract you will save at least 5% according to the requirements of the ballot question, after that the savings can change.  Franklin picked this target percentage to buffer against any future increases, but utility rates vary depending on the season and regulated rate changes, there are no guarantees for savings.  In the event the price of the aggregated energy exceeds PSEG’s default provider, you will receive a notice and be able to change back to PSEG before the higher rates begin.

Are there other advantages to being in a CEA?

Besides a lower energy price, Franklin Township customers in the program will also receive at least 10% more renewable energy than the state requires helping to reduce the township’s carbon footprint.

Can I get all my energy from renewable sources even if I am willing to pay more?

Yes, there is an option to receive 100% of your electricity from clean renewable sources.  To choose this option, you will need to opt in, or what is referred to as “Opting Up,” because you are upping the percentage of renewable energy you want. The “Opting Up”  program of 100% renewable energy helps to reduce the carbon footprint.  The cost for this energy may be more than what you are currently paying, which is why you need to take action to enroll by Opting Up.

How do I participate in the program?

As a residential electric customer who has not already chosen a Third-Party Supplier for your electric supply, you will be automatically enrolled in this program and receive the anticipated energy savings over the term of the program unless you indicate your desire NOT to participate by “Opting out” by calling the program’s customer care team, returning a response card, or through the program’s web page. 

How do I Opt-Out and is there a fee to be a part of this program or penalty to leave after it starts?

No. There are no fees or penalties for leaving or joining the program, even after it starts. You can cancel anytime and after 30 days you will be removed.  Initially customers that want to Opt-out will have 60 days to do so before the program begins, therefore they will never be enrolled.

Will residents be penalized if they choose not to participate in this program?

No.  If a resident does not want to be a part of the CEA program, they can stay with their utility’s default energy providers or choose their own Third-Party Supplier (TPS).   There will never be a fee or penalty associated with participation or non-participation in the program.

If residents have solar panels, can they be a part of this program?

At this time, suppliers are not able to process the net metering portion of solar credits, and we recommend that residents with solar panels opt-out of the program to avoid losing their credits.

Can a residents’ information be sold to advertisers or energy companies?

No. A resident’s information, including their account number, is confidential and can only be used to set up the municipality’s CEA program.

Will the Budget Bill or Equal Payment Plan to offered?

Yes, the program offers budget billing.  You may experience a “true-up” prior to enrollment. 

Are the people knocking on my door asking about my electric bill a part of this program?

No. No one associated with this program will be calling or knocking on your door.  All official information is sent via USPS and posted on the program’s web page.

Is the price a “teaser” price that will go up after I am part of the program?

No.  The program rate is non-variable and will remain the same from month to month for the length of the negotiated contract term.

What happens after the initial term expires?

A new reduced rate and term may be offered of which you will be notified. If the 5% and 10% more renewable criteria savings can’t be met in a new contract, you will automatically be returned to the default service rate through PSEG.

Who supervises the Community Energy Aggregation (CEA) program?

The NJ Board of Utilities has enforcement authority over CEA programs in NJ.

How is this different from Community Solar offered in Franklin Township through companies like EverSolar and SolarLandscape?

Energy aggregation and community solar are completely different and unrelated. You can participate in community solar and the Township’s energy aggregation program at the same time by following the procedures with the community solar companies to sign up.