North Jersey towns unite in effort to lower utility bills
SUNDAY JANUARY 19, 2014, 12:44 AM
BY DAVE SHEINGOLD
STAFF WRITER
THE RECORD
A growing contingent of North Jersey municipalities is looking to use the power in numbers to cut residents’ utility bills through large-scale purchasing programs that promise better electricity prices.
At least 15 municipalities in the region are at various stages of adopting the programs, which advocates say allow them to pool the buying power of residents as a way of lowering their bills.
Residents in municipalities that approve the programs are automatically enrolled and must notify their borough or city halls if they want to withdraw and stay with traditional utility companies like Public Service Electric and Gas or Jersey Central Power & Light.
Officials say the programs promise to save the average homeowner $80 to $120 over a year’s time.
The programs use a 2003 state law that lets municipalities effectively take over energy purchasing for residents when market conditions are favorable. Local officials started pursuing the law last year when energy-price trends began working for the idea after years when they did not.
“The impetus behind it is to try to find a way to save residents, as well as businesses, money. It’s power in numbers,” said Michael Capobianco, borough manager in Little Ferry, the first municipality in Bergen and Passaic counties to seek bids from energy suppliers. Borough residents are expected to start getting lower-priced power this year.
“If we can take 10 percent off someone’s energy bill over the course of a year, it’s fantastic,” Capobianco said.
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