Electricity Supplier Town Hall Meeting Draws Large Turnout

Springfield residents filled the council chambers of the Municipal Building Wednesday evening to learn more about the possibility of selecting a new electricity supplier, something that the Township has stated could offer residential users up to a 20 percent savings on electric bills. 

The gathering was the first of two Town Hall meetings--the second will be held at 6:30 p.m. Tuesday, Sept. 10--organized to provide information about purchasing less expensive electricity through an auction process under a state law called Energy Aggregation. 

Stephen Thayer, a representative from Jersey Energy Group (JEG), the energy aggregation specialist hired by the Township, was available to answer residents' questions.  

Thayer explained that by acting as a broker between residents and electricity suppliers, JEG does the proper due diligence to find a third party supplier who can offer a rate that is 15 to 25 percent lower than that of the local utility.

Residents would see the savings in the supply portion of their electricity bill, Thayer noted, adding that distribution will still be provided by Jersey Central Power & Light. In answer to a question from a resident, Thayer said that savings would appear within two to three months of selecting that third party supplier. Another resident asked if the rate depended on the number of residents who participated, Thayer said it did not and explained that the rate is offered regardless of the number of participants, a risk assumed by the supplier. 

The rate will always be lower than JCP&L's, said David Barnett, chairman of the Township Committee's finance committee. If it were not, the Township would not go ahead with a contract, he said.

Residents learned that should the Township Committee decide to move forward with pursuing the aggregation, residents would automatically be enrolled and would need to opt out if they were not interested in participating. Barnett said the Township doesn't have "to rush to do this," adding that in addition to the second Town Hall meeting, the Committee will discuss the topic at its next several meetings before a decision is reached.

When asked, Barnett told residents that the Township would not benefit from the aggregation, other than by having happy residents. At its last meeting, the Committee said that by participating in a reverse auction run by EMEX, the Township will save close to $37,000 annually on its electricity bill. Barnett said the Township will see a larger percentage of savings than residents would because power for street lights is purchased at off-peak rates. 

Following the meeting, Barnett told Patch a Committee vote on the issue would likely take place in October. 

The following questions and answers were provided to attendees by the Township of Springfield: 

Will I See Any Change in Service? 

No. Your utility company will still service your account when it comes to power outages due to inclement weather, etc.

What Is My Utility's Company's Role in All of This?

Your utility company owns the power lines, transmission, and distribution centers. They are still in charge of delivering the electricity to residential homes and small businesses. 

Is My Utility Company Losing Money Because of This Program?

No. There are three main components to your power bill. Transmission, Distribution and Supply. Your utility company only profits off the Transmission and Distribution portions of the bill. The money made off these portions goes to maintaining power lines, emergency crews, and transmission and distribution centers. The supply portion of your bill does not support profits or any of the services listed above.

If I Am a Resident in This Program and My Power Goes Out, Will My Utility Company Service Those Who Still Receive Their Supply From My Utility Company Before My Household?

Absolutely not. For the reasons stated above, your utility company will not act with any bias when servicing electricity issues. You are still a customer of your utility company because you are paying for the transmission and distribution portions of your bill.

I Understand the Differences Between the Companies' Roles. Will I Receive Two Bills Because I Am Receiving Services From Two Different Companies?

No. You will receive one bill from your utility company every month. The only difference is that the supply portion of the bill will be your new lower rate with the selected suppliers name listed. 

What Happens If I Move? Will I Be Responsible for Any Termination Fees?

No. You will not be responsible for any termination fees should you move. Actually, even if you are not moving, do not opt out in the given 30 days, and still want to leave the program, JEG will ensure that there are absolutely no termination fees for any residents who want to opt out.

If I Have a Contract With a Third Party Electric Supplier, Can I Join the Community Aggregation Program?

Yes. But we urge you to carefuly review your third party supplier contract terms which may include termination fees.