For Immediate Release:                                                            Contact:

March 2, 2010                                                                         James Kickham

                                                                                                Executive Director

                                                                                                201-587-0555

Saddle Brook, NJ - The New Jersey Sustainable Energy Joint Meeting (NJSEM) is an energy purchasing  group of 113 New Jersey governmental entities who have joined together to provide small energy consumers equal footing with large energy users. The ultimate goal is to pool the resources of a large group of municipal organizations in order to collectively purchase natural gas and electricity. The end result will be price stability for all NJSEM members through a competitive on-line bid process, and the opportunity to realize a savings for all members.     

The NJSEM held its first successful on-line reverse auction for natural gas on February 9, 2010. The on-line reverse auction process is both efficient and transparent, and it allowed the NJSEM to secure a competitive price for natural gas for a one (1) year period. 

The successful bidder, Woodruff Energy of Bridgeton, New Jersey, bid $8.84per dekatherm (8.84/Dth) on an overall quantity of 389,594/Dth. The lock in price of $8.84/Dth is for the actual cost to purchase natural gas from its source and to cover the costs of interstate transportation until the gas reaches New Jersey. These are the only two natural gas costs a public entity can seek to control and reduce through the public bidding process.  The NJSEM Executive Board awarded a 12 month fixed price (FP) contract starting on April 1, 2010.

The NJSEM Chairman Richard Brook, of Florence Township New Jersey stated, “that while the natural gas award should result in a small savings for our members, and has the potential to be noticeable over the length of the contract, it does demonstrate the ability of public organizations to work together to obtain a competitive price for natural gas which will be stable for this twelve (12) month period. The uncertainty of natural gas costs is eliminated for all NJSEM members through the collective bidding and contract award process. The contract insulates all NJSEM members against the rising costs of natural gas. It ensures that all NJSEM members will be able to prepare their respective budgets knowing that natural gas costs cannot go above $8.84 a dekatherm during the contract period. Cost certainty is critical for all public entities.”   

The NJSEM will next pursue competitive bidding for electric aggregation for its members. Please visit the NJSEM website at www.NJSEM.org for more information about the benefits of joining the New Jersey Sustainable Energy Meeting.