This year, PHS is integrating a new electricity source in order to lower the cost of its energy. The school will still be receiving energy from PSE&G, but they will also be getting third-party energy from PSE&G’s supply. The third-party energy source uses the utilities owned by PSE&G but is still their own competitive company. Consequently, when the school pays the bill to PSE&G, a portion goes to the other third-party company. This method gives the school access to more competitive pricing.
For this new electricity source, the district has used an electricity auction, which means it has covered the supply cost using a third party. Another company goes to an auction for the district, and the district has a trigger resolution passed by the board. The trigger resolution states that if the company is able to buy the electricity or natural gas source at a given price, then the bid can be automatically accepted. The district has just gone through the planning process for electricity auctions for 2027.
Sustainable Princeton is a non-profit organization committed to motivating the community to adopt environmentally-conscious and sustainable practices, with Jenny Ludmer as a program manager. According to Ludmer, the benefits of switching to a new source are clear.
“Using third-party for their electricity, [the district saves] $55,000 a year … for natural gas, they saved $20,000 a year,” explained Ludmer.
Because PHS has only started its energy auction recently, the 2027 providers have not yet been confirmed. However, the current providers for the district are NextEra for electricity and NRG and Direct Energy for natural gas.
As Ludmer pointed out, switching to a new energy provider will not affect the electricity at PHS, just saving costs. “It doesn’t change anything with the actual electricity [PHS is] getting,” Ludmer said. “All it does is help [the school] to save money.”