Montclair has joined a local government aggregation pool to purchase electricity in its on-going efforts to save money and share services. Earlier this year the Township Council authorized Essex County to act as the lead purchasing agency for a regional pricing cooperative system. The agreement includes 34 other towns and cities in Essex and Hudson counties and the two county governments.
The cooperative purchasing plan substantially lowers the Township’s electric supply rates.
“Compared to this past year’s electricity supply costs, over the next year Montclair expects to save around $140,000, a reduction of about 19%,” said Township Manager Marc Dashield. “Even when we compare to next year’s anticipated lower utility tariff prices, the Township hopes to save more than $90,000, about a 13% savings.”
Along with these savings is the important additional benefit that more than 15% of the electricity the Township will now be buying will come from clean, renewable energy sources, a requirement proposed by the Montclair Environmental Commission.
Five third-party suppliers submitted final bids by the May 8 deadline and two companies were awarded contracts to supply the cooperative. The bids were not only significantly lower than the current prices but also lower than the projected reduced market prices.