Full Notification

         Teaneck Community Energy Aggregation Program
                               (“TCEA”) Update
                               September 2022
                                   UPDATE

The Township of Teaneck launched the first round of the Teaneck Community Energy Aggregation Program (“TCEA Round 1”) in the Spring of 2022 in support of this common goal. The TCEA was implemented for the purpose of creating purchasing leverage while improving the Township’s carbon footprint.

What is TCEA?

In efforts to improve the Township’s carbon footprint, the Township of Teaneck, local residents, and the Food & Water Watch recently pursued an initiative to expedite the use of clean energy, with enhanced renewable content levels, levels higher than required by State Law. This initiative ultimately resulted in Teaneck residents passing a Referendum, requiring the purchase of alternate energy credits at set minimum percentages (for the enhanced renewable energy content required). The minimum percentage increase each year as per the Referendum passed in November 2021, with the initial timeline for program implementation set for November 2022.

When will TCEA go into Effect?

A procurement timeline was established that complied with the ordinance November 2022 implementation milestone in order to ensure that if prices were favorable, the Township could make an award for a November contract start. Competing proposals were received through a competitive procurement process which was conducted in Summer 2022. Multiple State-licensed electric power suppliers responded to our request for proposals to supply Township residents with energy supplies that contained the enhanced renewable energy content levels required by the approved Referendum.

A combination of higher required renewable credits and significant changes in energy market prices have made it difficult to obtain favorable bid pricing as compared to the PSE&G tariff. As you review the graph presented below, you will note the significant increases in forward prices during the past 9 months, which make it significantly more difficult to procure reasonably priced supplies from alternate energy suppliers.

Unfortunately, the prices received during August’s bid were all significantly higher than PSE&G’s utility rates, and Teaneck concluded that for the near term, residents are better served by PSE&G Basic Generation Service for power supply1. TCEA commits to resoliciting bids at a later date when market conditions improve. In the meantime, the Township will continue to work in collaboration with residents and Food & Water Watch in order to bring clean energy options to residents of Teaneck.

When will the next round of bids for TCEA commence?

Teaneck will be monitoring market conditions for improved opportunities to award a contract, in consultation with its energy consultant, Gabel Associates, Inc., and expects to go back out to bid once market conditions improve. Once a contract is awarded, eligible residents (all residents except those that have their own solar generating system or their own third-party supply contract), will be sent a mailing informing them of the details of the program and how to opt-out.

Do I need to act?

No further action is necessary for residents who want to participate in the program. If and when the Township of Teaneck is able to secure favorable pricing comparable to or below the PSE&G default rate, eligible residents will be informed and automatically enrolled in the program. Residents who do not want to participate will have the choice to opt out of the new program at any time.

The Township appreciates your understanding and will continue to work diligently with Gabel Associates Inc in the near future to procure a Round 1 contract for our residents. We also will continue to work collaboratively and diligently with residents and Food and Water Watch to ensure the Township progresses towards a cleaner carbon footprint. Should you have any further questions, please feel free to reach out to me; the TCEA’s energy consultant, Gabel Associates at [email protected]; or your Township Council members.

Sincerely,

Dean Kazinci
Township Manager

Dr. James Dunleavy
MayoR