February 2023

UPDATE

The Teaneck Community Energy Aggregation (TCEA) was launched in 2022, with the goal of using bulk purchasing power to procure electric power supply on behalf of residents at a potentially lower price, and with a higher renewable content, than power supply provided by PSE&G. The TCEA launched its first-round program in 2022, but unfortunately, due to skyrocketing energy market prices, we were unable to obtain favorable pricing to procure a supply contract. The TCEA and its energy agent, Gabel Associates, Inc., have been closely monitoring the energy market for savings opportunities since last summer.  The TCEA will go back out to market as soon conditions warrant and will notify residents if and when a contract is signed, and the program is active.  Please monitor the Township’s website (www.teanecknj.gov ) for any updates. 

As you are most likely well aware, there have been significant increases in energy market prices since 2020. Energy price increases have made it considerably more difficult to obtain favorable bid pricing for a potential first round contract for the TCEA.  The TCEA has committed to resoliciting bids at a later date when market conditions improve.  

The TCEA has been monitoring market conditions in consultation with its energy consultant, Gabel Associates, Inc. Energy market prices continued to escalate through much of 2022, before a rather mild start to the winter has more recently resulted in some improvement in energy market conditions (although prices remain significantly higher than a couple of years ago). PSE&G recently announced results of its annual wholesale power auction earlier in February and on the energy consultant’s recommendation, the TCEA is now awaiting the announcement in Spring 2023 of the utility’s (PSE&G) resultant retail tariff prices for the coming year (utility tariff prices run on an annual cycle from June 1^st through May 31^st and will incorporate the recent auction results).  Once the new tariff prices are announced, the TCEA will be better able to assess whether there is a renewed opportunity for this program.  

If energy market conditions look to have improved at that time, steps will be taken to begin a new competitive bid process. If a future bid results in competitive pricing and the TCEA awards a contract, the contract would most likely start in mid-to-late 2023.  In such event, eligible Township residents (all residents except those that have their own solar generating system or their own third party supply contract, or those residents who have requested to be placed on the program’s ‘Do Not Disturb’ list), will be sent a mailing informing them of the details of the new contract, after which residents would have the choice of opting-out of the new program if they do not wish to participate. Again, no further action will be necessary for residents who want to participate in the GEA program. 

We appreciate your understanding and look forward to working diligently with our consultant in the near future to achieve GEA supply options for our residents. Should you have any further questions, please feel free to contact me, or Gabel Associates at GEA-program@gabelassociates.com.