School districts save a total of $36m in electricity costs over the next two years
South Jersey Energy, a subsidiary of South Jersey Industries, has won a bid to supply electricity to New Jersey school districts. The company has said that some 400 New Jersey school districts will save a total of $36m in electricity costs over the next two years as a result of an agreement developed by an energy-buying co-operative headed by the New Jersey School Boards Association.
Under the terms of the contract, South Jersey Energy (SJE) will supply 2.5 million MWh of electricity, which represents all of the electricity requirements for the Alliance for Competitive Energy Services (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.
Michael Renna, president of SJE, said: The competitive bidding process has worked very favorably for our state’s school districts. We know our schools are under incredible budget pressures due to economic conditions, so we are pleased that the agreement will significantly reduce their electricity costs.