How It Works

A litte about this program and how it works


Learn about this program and how it can help reduce the cost of your energy bill.
  • This program covers only the power supply portion of your electric bill.

  • The delivery and distribution of electricity under this program will continue to remain the same, through the regulated utility (PSE&G, JCP&L, ACE, etc.) that serves your home.

  • New Jersey’s Retail Choice regulations allow you to purchase power supply from a third party supplier. Most residential electric customers in the State have not switched to a third party supplier; therefore, they obtain their power supply from their Local Distribution Company (a.k.a. utility company).

  • The municipality has engaged an independent consultant to collect energy usage information, prepare bid specifications, and seek pricing from Third Party Suppliers through a public bid process.

  • All municipality residents are automatically included in the Aggregation program unless they have already chosen a Third Party Supplier.

  • The program will leverage the bulk purchasing power of all of the municipality’s residents to obtain power supply that is less expensive.

  • Although all residential customers in the municipality not currently purchasing from a third party supplier are automatically included in the program, a resident may “opt-out” of the program if they wish to.

  • The local utility will continue to handle your account, addressing any outages and maintaining service. The only change is the billing and cost of the energy provided.


  • Overall, how does the program benefit the residents?

    The program ensures that they will receive a rate that is lower than the utility tariff default rate at the time of bid. The program also provides 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.

  • How much savings should I expect through a Government Energy Aggregation program?

    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.

    Energy is a commodity so the prices change constantly and trend over time so similar results cannot be assured. However, we have experienced an average savings of 5-10% with our programs and the municipality will not and cannot award a contract to a supplier unless the program rate is lower than the respective utility tariff default rate for the energy supply at the time of bid.