By Walter Elliott
MAPLEWOOD – Customers who had been using Direct Energy Services as their electricity provider here and three other “Local Talk” towns have noticed billing spikes since the Holidays now that they have been returned to PSE&G.
Many of the ex-DES customers here, South Orange, Montclair and Glen Ridge have since been quizzing themselves and the Public Service Electric and Gas’ billing department on why the $350 to $780 hikes over this time last year or in recent months.
There are three factors that partially – and not completely – account to the higher December and January bills.
It is a given that we are in wintertime, where cold weather prompts more energy use. That has not totally squared when compared to bills of this time last year.
Many of us are using more energy while staying indoors during the pandemic. More people are working, cooking, being entertained and/or studying from home.
When the above factors are unable to reconcile the higher bills there is a third reason related to when DES, of Houston, Texas, returned its customers back to PSE&G Dec. 31.
Customers in Maplewood, South Orange, Montclair and Glen Ridge had joined into a community third party energy aggregation contract with DES-NJ, of Linden, in March 2019 – a contract that had expired Dec. 31.
These four “Local Talk” towns, beforehand, created the Sustainable Essex Alliance to select a third party to supply energy and to negotiate lower electricity rates with.
The concept is similar to when municipalities form cooperatives to buy fuel oil, rock salt and other supplies. The thinking is that more parties banding together to negotiate prices and rates would be cheaper than if they bargain by themselves.
SEA’s contract with DES, for many customers, seemed to be working. An audit made by SEA-hired Babel Associates energy consultant, found its participating residents saving “nearly $1.9 million” in the first 12 months.
With DES’s contract due to expire Dec. 31, SEA then sought bids for 12 to 24 month contracts. The Nov. 30 explanation posted on Maplewood’s website did not say whether DES was solicited for a bid.
“On Sept. 17 the SEA received price proposals from four energy firms,” said the Maplewood release. “Disappointingly, they did not meet SEA pricing criteria relative to PSE&G rates. Due to the lead time involved with the rejection of all four bids meant that a new contract couldn’t immediately follow the current contract that expired in December. All residents in Round One of the SEA program temporarily transitioned back to electric supply with PSE&G.”
PSE&G, however, is not responsible for hiking on the customers they have welcomed back. The state’s largest power utility said it is collecting for what DES had undercharged.
Some DES customers found deep in their bills that DES had been balancing out their rates over those 17 months.
DES initially set customer rates based on the previous 12 months energy use under PSE&G. This energy provider then came up with an “average” month rate. The practice is comparable to a utility arriving at an “estimated” bill when its meter readers are unable to enter a property for gauge reading.
Some DES customers on the SEA program realized that they had paid rates below what energy they were actually using in hindsight. PSE&G has now come calling to collect on a deficit left by DES.
Energy customers are advised to:
1. Take time to thoroughly read through the current and next energy contract and bills.
2. Monthly record your own electric and/or gas meter data for comparison.
3. Keep a paper trail of contracts, bills and meter recordings.
The SEA has meanwhile entered an 18-month Round Two contract with energy provider Energy Harbor. Energy Harbor, of Akron, Ohio, is to start supplying electricity sometime in March 2021.
Customers who do not seek an SEA-Energy Harbor opt-out will get an automatic changeover announcement from PSE&G around Feb. 15. Energy Harbor charges will start appearing on PSE&G’s April bills. Details are found on Maplewood’s website.
