Energy Aggregation Begins This Month in Toms River

You likely didn't notice, but if you're a Toms River resident, you switched energy suppliers Sept. 1.

The township has entered into a year-long agreement with Dominion Energy Solutions, a Virginia-based company, to supply electricity to Toms River residents. While JCP&L will still be the company to call if your power goes out, Dominion will be selling you your electricity through JCP&L's lines.

The arrangement is known as an energy aggregation program. Under New Jersey law, the township is allowed to seek bids from energy suppliers and, effectively, sign up all township residents for the program unless they opt out or already have an alternative supplier. Consumers are protected by a section of the law which states that the price of energy through the aggregation program must be less than the local utility company's price – effectively guaranteeing savings to residents.

So how do the numbers work out in Toms River?

JCP&L charges several different rates depending on how much electricity a customer uses, the time of year, and even individual consumption patterns, said Daniel E. Donovan, a spokesman for Dominion.

Thus, the amount residents save will vary depending on their particular energy consumption habits. But the township was able to calculate the average overall price charged by JCP&L at $0.104/kWh, including state energy taxes, according to the township.

That compares with Dominion's price of $0.09113, which also includes state taxes, said Donovan.

Township officials say Dominion's rate is about 12 percent lower than JCP&L's Basic Generation Service, which will save township customers around $4 million per year.

The amount of savings could change over time, however.

Under the agreement, Dominion's rate will remain in place until June 2015, though JCP&L's current rate is set to change in March 2014 – only a few months into the contract with Dominion. JCP&L's rates are expected to "decrease slightly" at that point, though only by about a single percentage point, keeping Dominion's rate the lower option.

Over the 21 month period the contract is in place, officials say, a resident should save about $175.

Residents who want to opt out of the program at any time can do so. They can go back to JCP&L's rates or even find a different provider under the state's energy choice program.