The Franklin Reporter & Advocate Eight Villages, One Community
Energy aggregation for township ratepayers will have to wait at least until the Spring of 2024, a Township official said on October 2.
Updating the Environmental Commission on the Township’s progress in implementing energy aggregation, which was approved by voters in November 2022, Township Councilmember Ed Potosnak said that now is probably not a good time to enter into any aggregation contracts because of the current volatile nature of energy prices.
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 2022, and the Township subsequently contracted with Gabel Associates to act as its consultant in finding a third-party aggregator.
Potosnak said Gabel recently recommended that the Township wait on finding a source.
“They recommended we not go out at this time because with everything happening in Ukraine, energy prices have spiked across the world,” Potosnak said.
He said that the third-party energy suppliers set their prices based on a three-year average, and new prices will be set in April 2024.
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 a certain percentage of the electricity delivered is created sustainably.
“Next year, in April, they take the new data into consideration, and they have a new three-year rolling average, which means their energy costs will be higher, which will make it more probable that we could meet our criteria in the spring-ish season of next year,” he said.
“There’s no reason to drop a bunch of papers, have companies respond if it’s not favorable, given we want to be more aggressive and save folks money,” Potosnak said.
“It looks like within this one-year period from now, we should be able to get a more competitive rate and save people money,” he said.
This is not the first time energy aggregation was considered by the Township Council.
In March 2014, an ombudsman from the state Board of Public Utilities discussed the idea with the then-Council.
After the presentation, then-Councilman Phil Kramer suggested the Council direct Township Manager Bob Vornlocker to develop a Request for Proposals for an energy consultant, but other Council members weren’t convinced.
