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Camden County Leads Innovative Partnership to Purchase Electricity

South Jersey Power Cooperative’s group buying power to save $3.4 million

Camden County has again taken the lead role in an innovative partnership to purchase retail electricity at a significant savings thanks to the group buying power and diversity of the South Jersey Power Cooperative (SJPC). 
 
“This partnership reflects the Board’s commitment to cost cutting and fiscal responsibility.  By purchasing electricity in bulk, Camden County government is increasingly becoming leaner and more efficient, thereby saving taxpayer dollars,” said Freeholder Deputy Director Edward T. McDonnell.  “The reduction in electric expenditures by Camden County alone is $400,000.”
 
Camden County has participated in bulk electric purchasing since 2004 when the SJPC was formed.  In addition to Camden, the SJPC includes the Counties of Atlantic, Cape May, Cumberland, Gloucester and Salem, along with k-12 school districts, vocational-technical schools, municipalities, utilities authorities and county colleges.  In total, there are about 65 participating municipal entities.
 
“In Camden County, we put taxpayers first.  This is an excellent example of how the county works to efficiently manage its resources and expenses,” said Freeholder McDonnell.  “The combined buying power of the cooperative allows all of the participants to run their operations more economically.  We are proud that we were able to realize these savings through the work of our Camden County Division of Purchasing.”
 
The Camden County Division of Purchasing received bid proposals on behalf of the SJPC through an online reverse auction for almost 400 facilities located throughout PSE&G and Atlantic City Electric territory.  The lowest rates were submitted by Hess Corporation of Woodbridge, NJ.  Based upon their bid prices, preliminary calculations show a projected cost savings over the course of a 1-year period of approximately $3.4 million, cumulative for all SJPC participants.
 
            “After many consecutive years of increasingly higher energy prices, it is refreshing to see that the SJPC and its members are now able to capitalize on a market condition where retail energy prices are currently lower than default utility rates.  This condition has created the opportunity for members to achieve about 10-20% savings in energy costs.  This is a small bright spot for taxpayers in difficult economic times,” said Erik Miller, Energy Procurement Manager for Dome-Tech, Inc. of Edison, SJPC consultant for energy services.