ORDINANCE NO. 14-09
BOROUGH OF NORTH PLAINFIELD
COUNTY OF SOMERSET
STATE OF NEW JERSEY
AN ORDINANCE TO REPEAL ORDINANCE 14-03 AND
TO AMEND, REVISE AND SUPPLEMENT THE BOROUGH CODE
OF THE BOROUGH OF NORTH PLAINFIELD,
CHAPTER II, ENTITLED “ADMINISTRATION”, TO ADD REVISED
ARTICLE 6, SECTION 2:47 TO RE-ESTABLISH A MUNICIPAL
“GOVERNMENT ENERGY AGGREGATION PROGRAM”
FOR ELECTRICITY
WHEREAS, the State of New Jersey has been engaged in a process to establish a
competitive marketplace through deregulation and restructuring of the electricity supply
market;
WHEREAS, the Government Energy Aggregation Act, N.J.S.A. 48:3-93.1 et seq.
(the “GEA Act”) governs the establishment of a government energy aggregation
program (“GEA Program”), which is a government-operated purchasing cooperative
through which multiple energy consumers purchase energy together under the auspices
of a government aggregator; and
WHEREAS, the New Jersey Board of Public Utilities (the "BPU") has adopted
regulations governing the implementation of a GEA Program codified at N.J.A.C. 14:46.1 et seq. (“GEA Regulations”); and
WHEREAS, pursuant to the GEA Act, the Borough of North Plainfield (the
“Borough”) seeks to establish a GEA Program for the provision of electricity within the
Borough, for the purpose of obtaining power supply cost savings for residential,
industrial, commercial and public entity consumers (“Consumers”) located within the
Borough; and
WHEREAS, the Borough Council intends to conduct the GEA Program in the
Borough as the Lead Agency (as that term is defined in the GEA Act) and, consistent
with applicable laws, rules and regulations, may solicit proposals pursuant to the Local
Public Contracts Law, N.J.S.A. 40A:11-1 et seq., and may enter into a contract for the
provision of electric generation services on behalf of Consumers located within the
boundaries of the Borough, provided that such contract will provide power supply cost
savings to those Consumers; and
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WHEREAS, the Borough Council may, by Resolution, award a contract for
energy generation and aggregation services to an electric power supplier (the “Supplier”)
that is deemed qualified and who has submitted price proposals that are lower than the
prevailing price for utility-provided basic generation service; and,
WHEREAS, if a contract is awarded, residential Consumers will be permitted to
opt out of the GEA Program at any time after thirty (30) days, and industrial, commercial,
and public entity Consumers will be required to opt into the GEA Program should they
determine to participate; and
WHEREAS, the GEA Act requires the GEA Program to be established by
Ordinance;
NOW, THEREFORE, BE IT ORDAINED by the Borough Council as follows:
Article VI, Sections 2-47.1 through 2.47-8 repealed in entirety and replaced in
entirety with the following:
ARTICLE VI
GOVERNMENT PROGRAMS
2-47. GOVERNMENT ENERGY AGGREGATION PROGRAM
2-47.1 Establishment.
a.
There is hereby established a Community Choice Government Energy
Aggregation Program (“GEA Program”), in the Borough of North Plainfield, for
the purpose of soliciting, contracting for and obtaining power supply cost savings
for residential, industrial, commercial and public entity consumers (“Consumers”)
located within the Borough, in accordance with the provisions of the Government
Energy Aggregation Act, N.J.S.A. 48:3-93.1 et seq. (the “GEA Act”) and the
regulations promulgated by the New Jersey Board of Public Utilities (“BPU”),
N.J.A.C. 14:4-6.1 et seq. (the “GEA Regulations”).
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2-47.2 Agreement with PSEG.
a.
The Mayor is authorized to execute and the Borough Clerk is authorized to attest
to the execution of an Electric Distribution Aggregation Company Agreement, in
a form acceptable to the Borough and in accord with applicable laws, rules and
regulations, with Public Service Electric & Gas (“PSEG”).
2-47.3 Solicitation and contract with supplier.
a.
The Borough Council may, consistent with applicable laws, rules and regulations,
solicit price proposals for energy generation and aggregation services on behalf of
Consumers located within the Borough, and may award a contract for such
services to a third-party electric supplier (the “Supplier”), who has submitted the
approved lowest qualified proposal below the prevailing price for utility-provided
basic generation service.
b.
The Mayor is authorized to execute and the Borough Clerk is authorized to attest
to the execution of a master performance agreement for purchase of electricity by
Consumers from the Supplier who has been awarded the contract by the Borough,
subject to its terms and conditions, and provided that such contract shall be at
prices reasonably estimated by the Borough Council to provide savings to
Consumers relative to the price charged for basic generation service by PSEG.
c.
The contract with the approved Supplier shall provide that residential Consumers
will be permitted to opt out of the GEA Program at any time after thirty (30) days;
and
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d.
Industrial, commercial, and public entity Consumers will be permitted to opt into
the GEA Program consistent with applicable rules; and
e.
The contract with an approved Supplier shall be valid for no more than two (2)
years or less, at the option of the Borough, at which time the contract shall expire,
or same may be renewed by the Borough Council, or the Borough Council may
authorize a new solicitation for proposals, such action to be taken by a dulyadopted Resolution of the Borough Council.
2-47.4 Miscellaneous.
a.
All ordinances or portions of ordinances which are inconsistent with this
Ordinance shall be repealed as to their inconsistencies only.
b.
If any provision or paragraph of this Ordinance shall be held invalid by any court
of competent jurisdiction, the same shall not affect the other provisions of this
Ordinance, except so far as the provisions or paragraphs so declared invalid shall
be separable from the remainder or any portion thereof.
c.
This Ordinance shall take effect, after final passage, twenty (20) days following
action or inaction by the Mayor as provided by law, or an override of a mayoral
veto by the Council, whichever is applicable, and publication in accordance with
law, unless a resolution is adopted, pursuant to N.J.S.A. 40:69A-181(b), declaring
an emergency and providing that this Ordinance shall take effect at an earlier date.
2.47.5 through 2.47-8
Reserved
Date of Introduction:
Date of Passage:
Date of Publication:
Date of Adoption:
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Roll Call:
AYES:
NAYS:
ABSTAIN:
ABSENT:
APPROVED BY THE MAYOR:
Yes _____
No ______
The above is a true copy of the Ordinance adopted by the Borough of North Plainfield.
ATTEST:
____________________________
Richard K. Phoenix, RMC
Borough Clerk
Borough of North Plainfield
__________________________
BOROUGH OF NORTH PLAINFIELD
_____________________________________
Douglas Singleterry, Esq., Council President
Date signed:
Date signed: _________________
___________________________________
Michael Giordano, Mayor
Date signed: _________________________
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