The Franklin Reporter & Advocate Eight Villages, One Community
Any potential electricity cost savings for township residents through energy aggregation will have to wait a while longer because the Township Council declined to make a contract award to an energy aggregator at its June 24 meeting.
The reason was that the company submitting a proposal did not meet criteria established by the Township Council.
The resolution rejecting the one price quote submitted by the unnamed supplier left the door open for the Township to seek out more proposals within 120 days.
“I’m disappointed that it wasn’t able to come back competitive so that we could save families across Franklin money,” Councilmember Ed Potosnak (D-Ward 1) said. “I do remain hopeful that maybe in the 120-day window that some folks could come in and might be able to be awarded.”
“But I think we’ve got to stick at it with the 120-day window and keep doing our work to get back to a place where we can lower those rates,” Potosnak said.
Energy aggregation is when a group partners to buy energy from a single source with the purpose of lowering their energy costs. In Franklin’s case, the group would buy electricity from a company other than PSE&G, although PSE&G would still deliver the electricity.
Ratepayers could opt-out of the program at any time.
The program was approved by voters in November 2022, although it has been talked about at least since 2014. The criteria for entering into any aggregation contract is that township ratepayers would save at least 5 percent over what they now pay PSE&G, and that 10 percent of the electricity delivered is created sustainably.
The program has been delayed because market conditions were not conducive to achieving the savings desired, but in April, Potosnak told the Environmental Commission that signs were looking good to enter into a contract over the summer.
The effort to enter into an energy aggregation program – and ostensibly save township residents some money on their bills – comes in the wake of electricity price hikes by PSE&G.
Loren Altshuler of Highland Park-based Gabel Associates, the Township’s energy aggregation consultant, said told the Council that since no bids meeting the criteria were received, her company’s recommendation was to “make no award at this time, yet allow that your bid remain open for up to 120 days to allow the township to take refreshed bids at a later date within that time period.”
Councilman Ram Anbarasan (D-At Large) wondered if there could be an adjustment in the requirement that at least 10 percent of the electricity generated be done so sustainably.
“I think my thinking is the green energy side, the 10 percent goal we established, maybe it’s high,” he said. “I’m not sure whether it is. But looking at the bids, maybe we can analyze that.”
“If we have to re-bid this at a later time, maybe that could be fine-tuned to a lower level. Maybe 5 percent, I don’t know,” he said. “But I think that’s something that we need to think about.”
The issue was brought to the Council is 2022 by petitioners asking that a public question be placed on that year’s election ballot asking residents if they would like the Council to investigate aggregation. The question was overwhelmingly approved.
Councilman James Vassanella (D-Ward 5) told Anbarasan that the 10 percent sustainable energy requirement was included in the petition.
“We can’t just change that, we’d have to go back to some kind of ordinance or referendum,” he said.
“So from what I know, PSE&G and all the other providers are having a tough time … they’re unable to meet their green energy, their clean energy goals as a state. So I think we may have to re-look at that,” Anbarasan said.
“But the petitioners specifically wanted it for green energy,” Mayor Phil Kramer said. “That’s how the whole thing started. And they were, at one point, annoyed that we had added savings to it. So I understand what you’re saying, practicality, but you’re kind of turning upside down the intention of the whole thing. But I do agree we should analyze the bids and at least know, make some decisions, or understand, anyway, what’s going on.”
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