Manchester Looks Toward 3rd Round Of Energy Aggregation

MANCHESTER, NJ — As Manchester Township begins looking at a third round of energy aggregation, township officials are reaching out to residents, particularly new ones, to inform them and encourage them to consider joining the program.

On Monday the Township Council approved a new contract for Gabel and Associates, which has handled the past two aggregation contracts, as the first step in seeking and securing a lower rate for electricity.

The current contract, with Constellation Energy, ends in October, and Manchester will be getting bids for a new contract by June or July.

"I noticed that as each round gets closer to the end, the numbers (of residents participating) drop," Mayor Ken Palmer said. "People coming in to town don't recognize Manchester has this program."

The letter to residents about the energy aggregation program said the township will be looking for a savings compared to the rates from Jersey Central Power & Light, along with a fixed rate for the electricity for two years.

"We will not enter into a contract without guaranteed savings," the letter says. "This program gives the Township the ability to use bulk purchasing power to contract with third-party energy suppliers for electrical power. JCP&L is still responsible for delivering the electricity to your residence as well as mailing one bill for both the energy generation and delivery."

Residents can opt-out of the program at any time with no fees.

Palmer noted that because the township is nearing the end of its energy aggregation contract, other third-party suppliers have been contacting township residents to encourage them to join their programs.

The problem, Palmer said, is those programs often turn out to be more expensive, with adjustable rates for electricity and termination fees when someone wants to leave the program.

Because other energy suppliers have begun contacting residents, Palmer urged residents to do their homework carefully on what the other suppliers offer.

"Please be careful about signing an individual agreement locking you into a contract that may contain an adjustable rate or a higher rate than JCP&L is providing," he said. "Other companies may claim to be offering better deals, but remember, if it sounds too good to be true, it probably is."

If you are inclined to sign with a separate energy provider, Palmer urges people to ask the following questions:

• Is the rate fixed or adjustable?
• If fixed, for how long?
• If adjustable, how often do rates adjust? How long is the overall contract?
• How do the rates compare to JCP&L's rate?

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