PRESS RELEASE – May 21, 2019 – FROM THE DESK OF MAYOR KENNETH T. PALMER
We have received a number of calls and inquiries about the conclusion of Manchester Township’s energy aggregation contract with Tri-Eagle Energy. As you know, the contract provided that Tri-Eagle would be the Township’s electric power supplier for our energy aggregation program for a period of two years. That period ends on June 30, 2019. When the contract ends, all of our residents who participated in the energy aggregation program will begin to purchase their electricity from JCP&L at their rates. There is not anything you need to do to effectuate the switch to JCP&L.
In the early spring, Manchester Township solicited bids from interested energy aggregation suppliers. Unfortunately, the bids we received were not cost advantageous compared to JCP&L rates. Manchester Township intends to solicit more bids in the fall. If the rates are beneficial, both the Council and I will move to enter into a contract. We recognize the cost savings the Tri-Eagle contract provided to our residents, especially those fully serviced by electricity. However, we will not just enter into a contract for the sake of entering into a contract. The rates must support the decision.
Importantly, other private energy suppliers know the Township’s contract with Tri-Eagle is expiring and have started soliciting for business. Please be careful about signing your own individual agreement locking you into a contract that may be adjustable or for a higher rate than JCP&L is providing. This includes renewing with Tri-Eagle as they are not obligated to give you the same rates and terms as the Township had negotiated. If you are inclined to sign with your own energy provider, ask the following questions:
- Is the rate fixed or adjustable?
- If fixed, how long?
- If adjustable, how often does the rate adjust?
- How long is the overall contract?
- How does the proposed rate compare to JCP&L’s rate?
Please note, when Manchester Township does go out to bid for another energy aggregation, we are looking to lock in a non-adjustable (fixed) rate that is 7-10% less than JCP&L.
Overall, Manchester’s first experience with an energy aggregation contract was successful. Despite a few customer service glitches, the program saved our residents legitimate money. As stated above, the Town Council and I are inclined to seek a second contract, but the terms must be right and the risk to our residents minimized. As this process progresses, we will keep you informed.