The program ensures that they will receive a rate that is lower than what the local utility is currently charging them. It will also give them increased protection in obtaining a Third Party by eliminating all the confusing fine print and forcing the Third Parties to compete for your business on an even playing field by giving everyone a price on a larger amount of energy on the same date under the same terms and conditions that are dictated to them through our RFP criteria, rather than them dictating to you what the terms of the contract will be. These criteria can also include a higher percentage of “green” renewable energy that will help create a cleaner environment.
Several states in the U.S.A. have adopted Government Energy Aggregation laws. Some of these states have different rules, regulations and restrictions governing the program as well as varying utility environments present in their states; therefore their savings experiences may not be comparable. In California, one of the programs requires 100% green energy which tends to be more expensive and resulted in no savings for the residents but have a much lower negative impact on the environment. In late 2012, Plumsted Township in Ocean County became the first community in New Jersey to successfully complete a bid under the States energy aggregation rules. The savings for Plumsted’s residents will be about 14% over the coming year versus the default rate in their service area. Energy is a commodity so the prices change constantly and trend over time so similar results cannot be assured. However, we still anticipate savings of 5-10% and the municipality will not and cannot award a contract to a supplier unless the residents save money when comparing with the local current default tariff rate for the energy supply.