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New Jersey Aggregation

of Electric & Gas

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Why does a Municipality or County have the ability to aggregate the energy usage on behalf of its residents?

With Retail Choice, companies are now able to compete for your energy usage and you are able to choose who to buy it from.
With the passing of the Government Energy Aggregation Act of 2003, government entities were given the ability to pool the energy usage of its ratepayers to drive down costs.
With energy deregulation, the “supply” and “distribution” portions of your bill were separated.
The distribution portion remains with the same regulated utility that has always delivered your service but allows the supply portion to be in a competitive venue to potentially be able to get the energy at a lower cost than what the Local Distribution Company (A.C.E., PSEG, JCPL) provides it for.
The 2003 law gave municipalities the ability to aggregate all of the residential and non-residential meters within their geographic boundaries in order to get the best price and specify very favorable terms for all the participants.