MANCHESTER – Residents should exercise caution signing individual contracts with third-party energy providers, township officials warned.
As Manchester’s energy aggregation contract with Tri-Eagle Energy is set to expire June 30, and contract participants’ primary provider reverts to Jersey Central Power & Light, other private energy suppliers have been aggressively soliciting residents for their business, Mayor Kenneth Palmer.
Palmer urged residents to consider the following before entering into any agreements with energy providers:
• 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?
This includes signing on with Tri-Eagle, which is not obligated to provide the same rate the township locked into two years ago.
The township went out to bid for a new energy aggregation contract in the Spring. The rates proposed did not beat out rates offered by JCP&L at the time. The township will go out to bid again in the fall, and will be looking for locked-in rates 7-10 percent below what JCP&L offers.
“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,” Palmer said.
“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,” Palmer said. “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.”