Let’s do our part to build a
GREEN FUTURE
FOR NEW JERSEY
Bringing Clean Energy to Our Communities
A new wave of community choice programs can help protect our health and environment by transitioning communities onto 100% clean energy sources.
The COVID-19 crisis demands serious action at every level of government, including policies to clean up the air pollution that makes our residents sick and more vulnerable to the pandemic. In addition to protecting public health, scientists have determined that we must also dramatically reduce greenhouse gas emissions to avoid the worst effects of climate change. Transitioning off polluting fossil fuels and onto clean renewable sources of energy can help us achieve these essential goals.
We don’t need to wait for new technological breakthroughs; electricity generation is one area where we have the tools right now to make a big difference.
Thankfully, municipal and county governments in New Jersey have the power to increase the use of clean energy in their communities without any additional state or federal action. With community choice aggregation, local and county governments can provide their residents and business with 100 percent clean renewable sources of electricity by the year 2030 — or even sooner.
Clean energy is about more than cleaning up air pollution and fighting climate change, though. By changing the way we buy power through community choice aggregation, we can also save money thanks to the power of bulk purchasing.
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FAQs
[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”What is Community Choice Aggregation (CCA)?” collapse_text=”What is Community Choice Aggregation (CCA)?” ]
These programs give residents in a community the power to buy electricity in bulk – similar to going to Costco in order to save money on residents’ energy bills.
It does not affect the ownership of power plants or the electrical grid. Anyone can opt-out of the program if they choose to do so.
Thanks to the Government Energy Aggregation Act of 2003, there are already many CCA programs in communities across the state. As the number of aggregation programs has grown, many communities have decided to use them to increase the share of clean, renewable energy they are purchasing.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Won’t this wind up costing more?” collapse_text=”Won’t this wind up costing more?” ]
No. Communities that have made the switch to bulk-buying are saving money every month.
Here are just some examples of CCA programs that are increasing renewable energy options for residents and lowering rates.
New Brunswick (Middlesex County)
New Brunswick launched their CCA, called renewableNB, in 2019. Throughout the first contract, prices were cheaper than PSE&G at 13.4 cents per kilowatt hour. One great feature of the New Brunswick program was there were two different options. The default option offered 50% renewable energy, but residents could also “opt up” to 100% renewables for a slightly higher cost, which was still cheaper than PSE&G. New Brunswick residents have saved about $100 per year on their electricity bills during the first round of the program.
Sustainable Essex Alliance
After launching their own successful programs, Livingston and Glen Rock have joined with five other communities to further leverage the power of bulk purchasing. The result is the Sustainable Essex Alliance, which is re-launching on April 1, 2021 with a cheaper price for energy that has roughly twice as much renewable content
Sustainable Essex towns will also have an option to opt up to 100% renewables at a rate comparable to what PSE&G currently charges for 21% renewables. According to energy consultant Gabel Associates, cost savings from the first round of their program have been robust. Glen Ridge saved $192,000; Maplewood saved $380,000 and South Orange saved $348,000. Montclair and Verona saved $684,000 and $253,000, respectively.
West Orange
The Township launched a new competitive procurement process in June 2019 for Round 3 of the West Orange Community Energy Aggregation program. On July 16, 2019, the Township of West Orange signed a contract with the low bidder, Direct Energy Services (“Direct Energy”). The new contract price is about 5% lower than the average PSE&G tariff price for power supply. The contract is projected to save the typical Township resident about $45 over the 12-month contract term, with no change to the level of service. In addition, the power supply being provided by Direct Energy under Round 3 of the WOCEA program will include 100% renewable energy, which is more than 4x times higher than the state-mandated green power content of PSE&G’s power supply.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”What percentage of the energy will be renewable?” collapse_text=”What percentage of the energy will be renewable?” ]
Our model ordinance (click here for more details) starts at 50 percent renewable and reaches 100 percent by 2030. Some towns are reaching the 100 percent goal earlier.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Why the 100% renewable energy goal?” collapse_text=”Why the 100% renewable energy goal?” ]
In order to avoid the worst effects of climate chaos, we must dramatically reduce greenhouse gas emissions. Getting to 100 percent renewable power by the year 2030 would bring us closer to meeting that goal. Electricity generation is one area where we have the tools right now to make a big difference – we just have to choose to make the switch.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Is this for electricity only, or is gas included?” collapse_text=”Is this for electricity only, or is gas included??” ]
These programs are only for electricity service.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Is the program mandatory?” collapse_text=”Is the program mandatory?” ]
No. Residents can opt-out at any time. Towns will mail everyone a letter about the program, giving the option to opt-out before the program starts and explaining that residents can opt-out at any time.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Will this raise my taxes?” collapse_text=”Will this raise my taxes?” ]
No, there are no taxes linked to this program. Typically, a town works with an energy consultant to select a renewable energy provider. Because a town does not usually create a new agency or hire additional staff, it has a minimal impact on a municipal budget. What we are seeing is lower energy bills and access to more clean energy.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Do I have to install solar panels, smart meters, or any other new equipment at my house?” collapse_text=”Do I have to install solar panels, smart meters, or any other new equipment at my house?” ]
Nope! CCA operates using existing service lines. You won’t need to install anything in your home, and there are no new service fees. All that changes is the electricity generation: instead of using electricity that’s generated from gas or coal plants, you will have the option to switch to safer, cleaner sources like wind and solar.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”What is the length of the typical CCA contract?” collapse_text=”What is the length of the typical CCA contract?” ]
The length of the contract depends on the bid and contract accepted by the community. Typical contracts are for 18 months – 2 years. Towns will start negotiating the next contract about 6 months before the current contract expires.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Are we protected from price increases?” collapse_text=”Are we protected from price increases?” ]
Communities are able to sign contracts with fixed costs to protect ratepayers from price spikes, unlike some third-party electricity contracts that leave ratepayers open to price spikes from fluctuations in fossil fuel cost.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”What about communities with two electric utilities, such as PSE&G and JCP&L?” collapse_text=”What about communities with two electric utilities, such as PSE&G and JCP&L?” ]
Yes. Having more than one electricity provider simply requires cooperation between the program administrators and two utilities instead of one.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Is there any government regulation involved?” collapse_text=”Is there any government regulation involved?” ]
The Board of Public Utilities has oversight over energy aggregation. [/bg_collapse]
[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Are businesses and schools included in the program?” collapse_text=”Are businesses and schools included in the program?” ]
The community can structure CCAs so that nonresidential customers can opt into the program.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Can multiple towns create CCA programs together?” collapse_text=”Can multiple towns create CCA programs together?” ]
Yes. Communities can have a joint CCA or towns can pass an ordinance allowing their residents to join a county CCA.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Do participants with solar panels benefit?” collapse_text=”Do participants with solar panels benefit?” ]
Yes. Solar panels don’t usually supply all of a home’s electricity, so this program will cover whatever energy is not generated by a homeowner’s own installation. With a CCA program, a customer with solar panels benefits from the savings of bulk energy purchasing.
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[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Will participating in the CCA program affect my LIHEAP or Lifeline benefits?” collapse_text=”Will participating in the CCA program affect my LIHEAP or Lifeline benefits?” ]
No. LIHEAP is a federally-funded program to assist low-income households with heating bills, and Lifeline is a state-funded, income-based utility assistance program. Participating in a CCA program will not impact your eligibility for either of these assistance programs.[/bg_collapse]
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