Firm says Vernon could slash energy costs

VERNON — Vernon Township could slash electricity costs by as much as 20 percent and save thousands of dollars each year if it chooses to use the services of a third party energy procurement firm, the Council learned Monday.
A representative for Transparent Energy (TE) told the council the Township stands to save up to $29,165 on energy costs over a two-year period if it buys electricity through the firm's procurement process.
According to the representative, TE serves as a middle man between suppliers and buyers, facilitating an auction in which approved suppliers of electricity and natural gas offer competitive rates to interested parties. These rates are generally below the prices charged by local utility companies, he said. Buyers also have the option to set certain bid specifications, such as requiring a certain proportion of energy come from green sources. The electricity supply is delivered over the same infrastructure currently used, and the local utility – in this case JCP&L – would remain responsible for upkeep and repair of those lines.
TE's analysis showed Vernon could secure a rate of 7.9 cents over a term of 12 or 24 months or 7.8 cents over 16 months if it chooses to use the firm's exchange. That compares to a cost of nearly 9.8 cents currently being charged by JCP&L, according to TE's estimate.
The Township's current estimated annual cost for electricity is $76,753. Using TE's services, that number could drop into the low $60,000 range.
To make the most of TE's auction process, the company recommended the Council pass a resolution designating a signatory who can lock in rates immediately once a set benchmark of savings is met in the auction. The council expressed its support for the notion, and is planning to consider a resolution with a 12 percent savings threshold at its next meeting.
TE's services are currently used by more than 40 public entities, including Sussex Borough and Bergen County, as well as private clients such as Chrysler, Rockerfeller Center, and Morgan Stanley.