Government Energy Aggregation is a program permitted under New Jersey State law that allows municipalities to pool together residents and conduct a bid for power supply from third-party suppliers, with the aim of obtaining a power supply price that is cheaper, and/or has more renewable energy than the power supplied by the electric utility. The program is conducted under the oversight of the New Jersey Board of Public Utilities, the Division of Rate Counsel and the Department of Community Affairs. New Brunswick has named its program the City of New Brunswick EAP.
Direct Energy Services was selected by the City of New Brunswick as the qualified supplier with the lowest proposed price in a public, competitive procurement. Direct Energy Services is an electric power supplier licensed by the New Jersey Board of Public Utilities.
The price of $0.11386 per kilowatt-hour (kWh) is more than 10% below the current average PSE&G tariff price for power supply. Even with expected drops in the PSE&G tariff price later this year, the average City resident is still projected to save about $95 over the full contract as compared to the average PSE&G tariff price-to-compare. Additionally, renewable power supply for participants includes an additional 31% NJ Class 1 RECs above the NJ Renewable Portfolio Standard (RPS).
No, this is a non-variable price that does not change with market conditions. Unlike some third-party supply contracts, the price is locked in through a contract with the City and will not fluctuate after an initial ‘teaser’ period. The contract price can only change if there is a Change in Law that equally affects the price of PSE&G power supply, such that even after such a price adjustment the savings as compared to the PSE&G tariff price is maintained. Any such Change in Law price adjustment would be subject to review and approval by the City to assure that the savings are not adversely impacted.
Your PSE&G bill includes separate charges for delivery service and for power supply service (i.e., Basic Generation Service). PSE&G will still provide delivery service and read your meter, and you will still receive a single bill from PSE&G which will continue to include the PSE&G delivery charges, but the utility Basic Generation Service charges for power supply will be replaced by the charges offered by the City’s chosen supplier, Direct Energy Services. Even if you participate in the program, PSE&G will still be responsible for service reliability and restoration.
Participation is never mandatory. Residents who do not currently have a third-party supply contract (i.e., take power supply service from PSE&G under the utility’s Basic Generation Service tariff) are included in the initial eligibility pool. However, residents can opt out of the program by mail, phone or electronically using the information in the Program Summary. If you opt out within the 30-day opt-out period (by June 12, 2019), you will not be enrolled in the program at all. Even after enrollment, you can opt out at any time, effective with the next meter read cycle, and there are no penalties or fees to do so.
Yes, if you do not opt out of the program, several weeks after receipt of this Information Package, you will receive a notification letter from PSE&G indicating that Direct Energy Services has enrolled your account for third-party supply and informing you of the date you will be switched to Direct Energy Services. This is just an added notification; no further action is required in order to participate.
No, this program does not include any door-to-door solicitation. Direct Energy Services has the necessary information already, subject to strict confidentiality. If you are solicited by someone, please do not provide them with your information – alert the City of New Brunswick, the City’s energy consultant, Good Energy, or Direct Energy Services immediately.
PSE&G will still provide delivery service. If the lights go out, you would still call PSE&G at 1-800-436-7734.
Yes, if you currently have a budget billing plan with PSE&G, the selected supplier is required to provide you with an equal payment plan for your power supply charges. PSE&G will continue to bill a levelized amount each month for delivery service, and Direct Energy Services will also bill a levelized amount each month (through the PSE&G bill) for power supply. You may experience a “true-up” on your bill from PSE&G prior to enrollment and then again at the end of the program.
There is no automatic rollover. If the City decides to continue the program, it will conduct a new competitive bid for a new contract, and you will be advised of the new contract. If the City discontinues the program, you will simply be returned to PSE&G power supply at the PSE&G tariff price.
Program details are provided in the Program Summary enclosed with this package. You can also contact Direct Energy Services using the contact information provided in the Program Summary enclosed in this information package or Good Energy at (833) 736-3962. Additional information regarding the program, including more detailed FAQs, can be found on the City’s website at: https://cityofnewbrunswick.org.
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