Andrzejczak Bill to Permit Shared Services Energy Authority Clears Assembly

TRENTON – Legislation sponsored by Assemblyman Bob Andrzejczak to help cut costs for municipally-operated utilities gained approval from the full Assembly on Monday.
The bill (A-2385) would authorize three or more municipalities that currently operate electric utilities to establish a shared services energy authority that may purchase, sell, exchange or transmit electricity at wholesale. The bill also would authorize a rural electric cooperative already in existence to join the authority once it has been established.
Currently, the joint operation of such facilities in this manner is not permitted under the “Uniform Shared Services and Consolidation Act.”
“There’s no household or business that can run without electricity, so while we cannot eliminate this expense entirely, it’s always important to seek ways to lower it,” said Andrzejczak (D-Cape May/Atlantic/Cumberland). “The savings that result from this bill can mean more money for groceries or filling the gas tank for the average family.”
If all eligible entities were to participate in the shared services energy authority, they could realize an estimated total savings of up to $67.7 million, said Andrzejczak. Individual households could see their energy bills decrease by up to $440 annually, he said.
The measure authorizes the formation of power supply contracts for a term of up to 40 years.
The nine municipalities and one rural electric cooperative that would be eligible to participate in the authority under the bill are as follows: Butler, Lavallette, Madison, Milltown, Park Ridge, Pemberton, Seaside Heights, South River, Vineland and the Sussex Rural Electric Cooperative.
The bill, which passed unanimously in the Assembly, now awaits further Senate consideration.