Folsom,
NJ - Some 400 New Jersey
school districts will save a total of $36 million in electricity
costs over the next two years as a result of an agreement
developed by an energy-buying cooperative headed by the New
Jersey School Boards Association. The contract, finalized
this month, represents the largest group energy purchasing
agreement in the state.
The agreement proves that the competitive bidding process
works in the energy industry, according to the president
of South Jersey Energy, a subsidiary of South Jersey Industries
[NYSE:SJI].
SJE was the successful bidder for less costly electricity
in a search conducted by the Alliance for Competitive Energy
Services, the school district buying cooperative sponsored
by the New Jersey School Boards Association, the New Jersey
Association of School Administrators and the New Jersey Association
of School business Officials.
“The competitive bidding process has worked very
favorably for our state’s school districts,” said
SJE President Michael J. Renna. “We know our schools
are under incredible budget pressures due to economic conditions,
so we’re pleased that this agreement will significantly
reduce their electricity costs.”
New Jersey School Boards Association Executive
Director Marie Bilik echoed Renna’s sentiments.
“The ACES agreement is a prime example of how local
school districts are working together to share services,’ she
said. “By reducing energy costs, the agreement will
enable public schools to direct more of their available funds
to the classroom. In some districts, the savings could help
to maintain important education programs; in others, the
reduced costs could alleviate some of the burden placed on
local property taxpayers.”
Under the terms of the contract, SJE will supply
2.5 million megawatts hours of electricity, which represents
all of the electricity requirements for the ACES member school
districts. The $36 million savings, calculated by an independent
consultant, represents the difference between the ACES contract
and the costs of electric generation normally charged by
the districts’ utility
companies.
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SJE acquires and markets natural gas and electricity for
retail customers and offers total energy management services
to help commercial and industrial facilities reduce their
overall energy costs.
Founded in 1999, the Alliance for Competitive Energy is
a joint energy-purchasing program for schools sponsored by
the New Jersey School Boards Association, the New Jersey
Association of School Business Officials and the New Jersey
Association of School Administrators. ACES retained and authorized
Gabel Associates, a New Jersey based energy, environmental
and public utility consulting firm, to administer the ACES
electric generation service aggregation program.
ACES also provides a natural gas aggregation program to
over 280 schools districts in New Jersey.
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ON THE WEB:
South Jersey Energy and the South Jersey Industries family
of companies: www.sjindustries.com
Gabel Associates and the Alliance for Competitive Energy
Services: www.gabelassociates.com
New Jersey School Boards Association: www.njsba.org
New Jersey Association of School Administrators: www.njasa.net
New Jersey Association of School Business Officials: www.njasbo.co
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