Show All Answers

1. What is Government Energy Aggregation?

According to New Jersey Government Energy Aggregation (NJGEA):

Government Energy Aggregation is a program that allows local governments in the Garden State to create a large buying group of residential and non-residential electricity accounts in order to seek bids for cheaper energy rates.

Customers served by New Jersey utilities Atlantic City Electric Company (AECO), Jersey Central Power & Light (JCP&L), Public Service Electric & Gas (PSE&G), and Orange & Rockland (NJ Division: Rockland Electric Company, RECO) receive their power at a fixed rate, set annually via a series of energy auctions, and regulated by the NJ Board of Public Utilities (BPU).

By aggregating, or grouping, a large number of residential and non-residential accounts together, economies of scale are created. These economies of scale set conditions for participating municipalities to achieve greater savings during a competitive bid situation than could normally have been achieved by the individual customer.

2. What is the benefit of Government Energy Aggregation?

The key benefit to Government Energy Aggregation is the ability for residential and non-residential account holders to save money on their electric bills. Based on current market conditions, individual accounts can potentially save 12% off of their entire bill, up to 17% or more off of the supply portion (only) of their bill.

A large portion of those savings will find their way back into local economies and benefit the entire community.