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Burlington County Energy Aggregation Program

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Presentation on theme: "Burlington County Energy Aggregation Program"— Presentation transcript:

1 Burlington County Energy Aggregation Program
The following presentation contains information about recent changes to the Burlington County Energy Aggregation Program. Burlington County Energy Aggregation Program

2 Energy Deregulation Deregulation is the separation of the delivery portion of the rate from the supply (energy) NJ has been deregulated since 1999 What is energy deregulation? Energy deregulation is the separation of distribution and supply. New Jersey has been deregulated since Since then, approximately 18% of the residential customer base has switched with third-party supplier that they have chosen. As illustrated in the picture below, before 1999 your local distribution company would generate electricity and bill for the supply and distribution portion of your bill.  After 1999, your local distribution company is only responsible for the distribution of your electricity.  They must buy electricity from third-party electric suppliers. Your local distribution company will still bill for you for the distribution and supply portion of your bill but will remit the supply portion to the suppliers who generated the electricity.

3 Deregulation Process BPU Statewide Auction Basic Generation Services
In order to make up your current rate, the Board of Public Utilities, also known as the BPU, runs a statewide auction. The results of the auction make up the basic generation service portion of the bill which is also known as the supply portion of your bill. On your current electric bill you can see the charges by finding the line item BGS, or basic generation services.

4 New Jersey BGS Auction is held every February.
Statewide BGS Auction New Jersey BGS Auction is held every February. Auction information and results are available at: BGS Auction Winners 2018 BP Energy Company Calpine Energy Services LP ConocoPhillips Company DTE Energy Trading, Inc. Direct Energy Business Marketing LLC Exelon Generation Company LLC Hartree Partners LP Macquarie Energy LLC NextEra Energy Marketing LLC PSEG Energy Resources & Trade LLC The last BPU auction was held on February Here is a look at some of the suppliers who make up the current default BGS rate:  BP Energy Company, Exelon Generation Company, and Trans Canada Power Marketing, to name a few.

5 What is Government Energy Aggregation
Government Energy Aggregation Act of 2003 Municipality Aggregation N.J.A.C. Title 14:4-6.1 (2012) Council must pass ordinance/resolutions BPU/Rate Counsel Review DCA Oversight of Auction Process The government energy aggregation act of 2003 was passed allowing counties and municipalities to aggregate their load and compete for a cheaper electric price versus the local distribution company. In 2012, NJAC title 14, was passed allowing municipalities to aggregate the residential users to compete for a cheaper electric price versus the local distribution company. All contracts and bid documents are sent to the BPU and rate counsel for review. The Department of community affairs also known as the DCA has oversight through the entire auction process.

6 Burlington County’s Energy Program
Formed in 2014 to create savings for residents in Burlington County. The County of Burlington acts as the Lead Agent for the program. Current participating towns include the City of Burlington, Cinnaminson, Florence, Lumberton, Moorestown, Palmyra, Riverside, Southampton, Woodland, and Wrightstown. Savings of $590,000 as of beginning of 2018. The BCEAP was formed in August of 2014 for the purpose of joint purchasing opportunities for energy procurement that would create energy savings for county and local government participants and aid in taxpayer savings. The County of Burlington acts as the Lead Agent and Aggregator for all participating towns and municipalities throughout the county. Already this program has saved residents in Burlington County more than $375,000.

7 Auction Results 100% price guaranteed – program price will always be lower than utility’s rate. New Savings Model November 2017 through November 2019 A consistent percentage of savings on supply costs regardless fluctuations in the utility’s price to compare 3% reduction for PSE&G customers This program offers a 100% Price Risk Guarantee to the participating members ensuring that their energy supply rates will never be higher than the utility’s price to compare. Burlington County’s savings program has been extended through November 2019, and the County, along with TriEagle Energy, is offering a new savings model for participants in the program. Under the initial pilot program, residents were charged a flat rate per kWh for their electricity supply, and, depending on usage and fluctuations in the utilities’ default rates, your percentage of savings varied monthly. Under the new savings model, you will receive a consistent percentage of savings on supply costs regardless of fluctuations in the utility’s price to compare: PSE&G customers will receive a 3% reduction on the electricity supply portion of their bills.

8 What to Expect You will receive info explaining the program, supplier information, rate and term information, and response options. Program includes residents not currently with a third party electric supplier or solar customers. Your utility company will continue to provide all current services they offer you today. You will continue receiving one bill from your utility. Here's what you can expect next. You should have received a postcard from the County of Burlington explaining the program. The postcard provided information regarding TriEagle energy, the winning rate, and opt out options. The program only includes residents who are not currently with a third-party supplier or have solar panels. Your utility company will continue to provide all current services they offer you today, and you will continue to receive one bill.

9 What to Expect The 3% savings is effective on 11/1/17 thru 11/2019.
There is nothing you need to do to receive the reduced rate. You can choose to discontinue participation by calling The 3% savings on the electricity supply portion of your bill will become effective with your next meter read after 11/1/17. There is nothing you need to do to continue receiving the reduced rate, and you can choose to discontinue participation in the BCEAP at any time without penalty by calling

10 Frequently Asked Questions
Who do I call if my electric goes out? Will I be penalized if I do not become part of the program? Will there be a different or two separate bills? Does this hurt the utility company? Who do I call with billing questions? If I cancel can I resume participation? Is budget billing offered? What if I already have a Third Party Supplier? Why do I have to respond in order to not participate? Who do I call if my electric goes out? You will still call your local distribution company as they still remain responsible and always will be responsible for the distribution lines entering your home. Will I be penalized if I do not become part of this program? No, you may opt out at any time for any reason with no penalty. Will there be a different or two separate bills? No, you will still receive one bill from your local distribution company Does this hurt the utility? No, your local distribution company will always remain your distribution company. They will still bill you for the distribution and supply. The only change is that they will now remit the supply portion to Trieagle energy rather than the suppliers that make up the BGS default rate provided by your local distribution company. Who do I call with billing questions? You may still call your local distribution company or TriEagle energy. If I opt out can I opt back in? Yes, you may opt out or opt in at any time for any reason. Is budget billing offered? Yes, If you currently enjoy budget billing, you can continue budget billing. Please see your energy information pack for your specific utility information. What if I already have a third-party supplier? If you are currently on a third party supplier, you must wait until the end of your contract and then you may opt into the program. Why do I have to opt out versus opting in? The opt out option is and aspect of the program written by the board of public utilities. The law requires us to follow the statutory guidelines in order to establish and participate in this type of program.

11 Questions? Call


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