CCNJ members have once again a unique opportunity to join the nation’s largest industrial energy aggregation group. Having realized more than $100 million dollars in savings for participants since its inception in 1999, the CCNJ Electricity Procurement Program is an excellent opportunity for CCNJ members to realize cost savings in purchasing electricity for their facilities in NJ, and any company facility within the PJM grid.
The program is designed to offer various purchasing opportunities that will assist you in selecting the best product to meet your company’s need. The upcoming bid solicitation provides the opportunity for additional CCNJ companies to join the group, which includes more than 40 of the largest energy users in New Jersey. The EPEX (CCNJ’s consultant) Request for Bids will represent 300 MW of peak electricity load and approximately 1.5 billion kWhs. The program has been tremendously successful over the past several years in securing electricity on behalf of the CCNJ members at the lowest price possible. CCNJ is able to achieve exceptional savings by leveraging electricity loads of the biggest industrial companies in New Jersey.
Small electricity users can now join and benefit from the savings realized by larger users since 1999. In the past, savings opportunities for small electricity users have been limited. Since utility prices are comprised of the average from the past three years of electricity prices obtained in the BPU energy auction, savings were difficult to achieve. With electricity prices continually going up, competitive suppliers couldn't provide prices lower than the utility prices and customers could not secure savings. The recent drop in energy prices is reversing this trend, and now is an excellent time for small users to join and begin saving.
By joining the CCNJ Energy Aggregation Program users can enjoy:
New Jersey’s industrial electric prices continue to be 60 percent above the national average, making NJ’s industrial electricity rates the 7th highest in the nation. The CCNJ Program has resulted in significant savings for the member companies with cost reductions of 13% to 20% below the regulated utility supply rate.
Ability to select different product types and product terms
This is a unique feature of the CCNJ program. You are able to meet your individual needs and still benefit from the buying power of the group. CCNJ members can select a variety of electricity product structures including 100% fixed price, 100% index price, and fixed-price block and index that are tailored to meet your specific risk appetite. The program is also flexible in supply contract length being able to accommodate supply agreements for as short as one-month to as long as five-years.
By selecting a 100% fixed price product, you can bring budget certainty to your corporate financial planning.
Energy Bill Auditing
CCNJ members who aren’t currently participating in the energy aggregation are now able to take advantage of EPEX’s proprietary bill auditing services.
Competitive energy procurement in New Jersey has resulted in extremely complex energy invoices, and there has been a large increase in the quantity and severity of billing errors and overcharges. If you don’t have an energy expert auditing your invoices, it is very possible that you may have unknowingly been overcharged.
Competitive Natural Gas Procurement
CCNJ members can also take advantage of New Jersey’s competitive natural gas market to lower their energy costs. If you are still purchasing natural gas from your regulated utility (PSE&G, New Jersey Natural Gas, Elizabethtown Gas or South Jersey Gas), you may be able to competitively source your accounts and save significantly.
Individualized electricity bidding analysis from EPEX
CCNJ’s consultant, EPEX, will recommend the appropriate product choice given market conditions and the risk tolerance of your company. The EPEX group will meet with your energy procurement team to discuss the benefits of the program, and gain information about your company in order to provide an initialized electricity bidding analysis.
In addition to the lowest price benefit of the Program, EPEX, CCNJ’s electricity purchasing consultant, provides on-going services that include:
- Screening of qualified suppliers.
- Proprietary price/risk analysis matrix that includes index, block/index (at varying %), and fixed price.
- On-going recommendations on when to lock in electricity prices
- Contract negotiations.
- Energy wholesale price intelligence.
- Electricity bill repository. All data is maintained electronically as well as hard copy.
- Electricity bill review. Check utility and supply bills for accuracy and rate optimization.
- Energy budget calculations on an individual account basis.
- Energy reports to compare actual costs to two benchmarks: same month previous year and basic generation service (shopping credits).
Your facilities outside of NJ can participate
Participants with facilities outside of NJ, but within the PJM grid, might be able to include those facilities in the energy program. This can only maximize your savings opportunity. Check with the EPEX consultants to see if the non-NJ facility qualifies.
For more information about the CCNJ Energy Aggregation Program, contact John Kaufman (EPEX) at 610.321.2711 or via email JKaufman@epex.cc.