Tuesday, February 12, 2013

Council Queries Energy Program "Opt-Out"

Excerpt, NJSA 48:3-93.2

A spokesman for a money-saving electrical energy plan startled City Council members Monday when he said residents could "opt out" of it.

Baye Wilson, an associate with Ethical Electric, said the city could use its size "to buy more in the marketplace" by adopting a Community Choice Aggregation Model that would include three accounts. The municipal portion would cover energy usage in municipal buildings, businesses could opt in and residents could opt out.

Wilson said with the city's large number of older houses, the ability to reduce costs was "a big plus." But Councilman Adrian Mapp asked, "Why would the residents of Plainfield be put in a position where we have to opt out?"

"You're telling me it would be mandatory for residents to take it?" Councilwoman Vera Greaves asked Wilson.

Wilson said no, residents can opt out and there would be a "significant education process" on the program.

Councilman William Reid said he was in agreement that an opt-out situation would be worse than an opt-in, because a lot of people would not understand.
 According to a Board of Public Utilities sample notification for an aggregation program, residents would be automatically enrolled and would have 30 days to indicate they did not want to participate.

In other questions, council members asked what municipalities in New Jersey have an aggregation program and Wilson named Bordentown. In answer to Councilman Cory Storch's question about the possible percentage of savings, Wilson said, "No one is going to say what number, because it has to be bid out."

Pressed later by Councilwoman Rebecca Williams, Wilson said clients in Maryland saved between 5 and 10 percent.

Public Works Director Eric Jackson said savings depend on the number of participants aggregated, but estimated for municipal buildings as much as $80,000 to $100,000 might be saved, though he added more research had to be done.

The presentation was for information only and no action was taken Monday. In answer to Williams' question regarding other companies providing the program, Jackson said the city would  issue a request for proposals.

--Bernice

6 comments:

  1. This is similar to what they've got going statewide in Texas. (http://www.powertochoose.org/_content/_resources/faqs.asp)

    It's not as crazy as it seems. It's only crazy the city Administration would entertain obligating residents before aggregation is made the established method of delivery in the Garden State. And without doubt, before that happens, the city would find a way to spend any savings on something foolish like a concession stand or paying off insurance consultants at top dollar.

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  2. Here we go...another PMUA? The council should reject this at all cost. We the residents should not be in a position to have to opt-out. And when we decide to opt-out would we still incur a monthly fee? This to me reeks of PMUA and an invitation for corruption. What a shame that any scammer can come to Plainfield and sell us anything, (PMUA, Shot Spotter, et al.) these scammers line a few pockets and the powers that be accept it. Even the name “Ethical Electric” sounds shady. If this is such a good deal, why don’t Ethical Electric take it to Westfield or better yet, how about some surrounding towns in Middlesex and Somerset, prove their worth then come back to Plainfield.
    Jerry Green - out, Sharon Robinson - out, entire city council - out! Plainfield needs a drastic change.

    If we want to use another source for electric (and gas) we certainly have choices, so let us chose. We do not need a middleman to supply us with something we can get direct from the suppler.

    rcb

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  3. Sounds like another shot spotter.

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  4. These alternative companies broker power. They take long term contracts with the electric providers and gamble that the fluctuation of local utility company rates will be less than what they can sell the power for if not at all times, for at least part of the time during their contract. Sometimes it works and sometimes it doesn't. When you ask these Brokers for a guarantee on the savings they flee like scared rabbits. Under no circumstances would I willingly subrogate my rights to obtain power from the vendor of my choice to the incompetence of City Hall. If there were a saving the City Government would expend it on the administration of the program. What the City has received is nothing more than a clever sales promotion from one of the alternative suppliers. I made the mistake of opting out and when the next 6 months electric bills came they were higher than the amount I would have paid had stayed with good ole PSE&G. Let the City use the alternative service for their facilities if they want to gamble, but leave me alone lest we have another PMUA situation. If the City tries to contract on behalf of the public without the public's unanimous prior consent I think they will wind up in court. Bill Kruse

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  5. I wonder what Sharon gets out of this. She looked pretty mad a Reid, who made sense for a change on this issue and the some sense on the very expensive hot dog stand which cost more than many houses in Plainfield. You know Shady Sharonda has got some angle that isn't good for the people of Plainfield.

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  6. I opted out for electric from PSE&G about a year and a half ago and my electric bills have gone down a lot. I wish I could opt out for gas too!

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