Deputy Mayor: Unplug Energy Aggregation Plan

COURT HOUSE – After months of due diligence, public meetings and community outreach, Middle Township Deputy Mayor Timothy Donohue believes the township should back away from residential energy aggregation, at least for the present.
Under a program, permitted under state law, the concept is to pool all residential electric accounts (those not already in a third-party contract) and go out to bid annually for the lowest rate available.
Contractual language and uncertainty on some of the details of the program have held up the township’s final commitment. Residents’ concerns about the process and having to opt out of the program also weighed in Donohue’s decision to call for a withdraw, announced in an Oct. 11 release.
“Sometimes you have to start the process to really find out if it makes sense and how folks feel about it,” stated Donohue.
“I’ve spent a lot of time doing my homework on this issue. I have heard our residents’ concerns at several public meetings. It is clear that many folks do not approve of being forced into the program and then having to opt out, regardless of how simple the opt out might be. I share those concerns. Middle Township would have been one of the first towns in the state to join in a multi-town aggregation program. While I remain committed to bold and innovative approaches to cutting cost for our residents, at this time, I’m just not confident that all our concerns with this new initiative are being addressed.”
Donohue stated he endorses a wait-and-see approach and will encourage his fellow township committee members to do the same.
“There are a lot of moving parts here, with this new type of energy purchasing, not only at the state and local level, put with various regulatory agencies, as well.” Donohue stated. “I think this approach will one day work to help reduce energy costs, but frankly, I’ve reached the point where I don’t want to make our residents the guinea pigs for an untried and as yet unproven program.”
Commercial Utilities Consultants performed energy aggregation services for the township’s public buildings. That successful auction of energy accounts has saved the municipality thousands of dollars in utility costs.
“Getting everyone together to purchase energy and drive down costs makes sense,” Donohue stated. “But I want the kinks worked out of the system before I recommend it to the people of Middle Township. If, at a later time, we feel the benefits are really there for our residents and all our concerns have been addressed, we may recommend revisiting the program in the future.”