Assembly Approves Chivukula & McKeon Measure to Deliver Energy Savings to Municipalities Through Shared Services

(TRENTON) Legislation sponsored by Assembly Utilities Chairman Upendra J. Chivukula and Assemblyman John F. McKeon to deliver energy savings to municipalities was approved today by the full Assembly.
The measure (A-2316) would authorize three or more municipalities that operate retail electric distribution systems, to establish a municipal shared services energy authority (authority). Once established, rural electric cooperatives could become a member of the authority.
“The breakthrough measure would empower municipalities to pool their reDests to purchase and develop safe and reliable energy Dests at more affordable rates. This would enable them to lower costs, leverage efficiencies and deliver energy savings to members of the authority,” Chivukula (D-Somerset\Middlesex) said.
“By enabling municipalities to enter into effective shared service contracts and allowing for aggregation in the marketplace, the measure would drive competition and help lower costs that could be passed on as savings to the taxpayer,” said McKeon (D-Essex\Morris).
Both McKeon and Chivukula are experienced municipal officials. McKeon served as a municipal official for 18 years out of which 12 were as mayor of West Orange. Chivukua served in Franklin Township for eight years, two of which were as mayor and deputy mayor.