The Federal Energy Regulatory Commission recently raised their electricity transmission rates. This has increased costs for PSE&G, and for all electric power suppliers servicing the PSE&G territory, including Direct Energy, our supplier for the Sustainable Essex Alliance Energy Procurement Cooperative (SEA EPC).
Our SEA EPC contract with Direct Energy permits PSE&G to pass along these unanticipated regulatory increases without any “mark-up,” and our contract further limits their price adjustments to the same amount that PSE&G raises its tariff price.
Therefore, consistent with the contract’s terms, the cost savings for cleaner energy that our residents are currently enjoying under the SEA program will not be impacted.
PSE&G’s tariff price for electricity supply is being increased in two steps: their first increase has already taken effect, and their 2nd step of price increase takes effect on June 1.
Direct Energy will also implement a 2-step price adjustment. In April’s PSE&G bill, participants in the SEA EPC program will notice a supply price increase exactly matching the first step increase PSE&G already put in place.
In June, the price will increase again, matching the 2nd step of PSE&G’s tariff price increase occurring at the same time.
During the second week of March, Direct Energy will mail to every residential PSE&G account participating in the SEA EPC program (more than two-thirds of our residents) a letter explaining these price adjustments, and the preservation of our cleaner electricity supply’s cost savings – approximately 10% – compared to PSE&G’s supply rate.
We will also post that letter on the Township website, along with any other program information and update materials provided by Direct Energy and/or our energy consultants, Gabel Associates.
If you have any questions, comments, or concerns, please contact me any time.