As you may know, our office has been a strong advocate of government aggregation because we believe it offers an essential option for consumers to act through their local government and gain the benefits of competition. As has been demonstrated in other states, this may be the only viable way in which residents and small businesses can secure the potential benefits of competition in electricity and natural gas supply markets. Before I go into the status of government aggregation in New Jersey however, I would like to briefly talk to you about the merits of government aggregation. See , Act Section 43b. If the local governments combine their energy needs with those of residential and business consumers, the small energy consumers can achieve greater negotiating power than by pooling only their own use.
Local government is set up by local citizens to provide general services to the people.
It is by law and tradition a natural aggregator for communities. They have no incentive to withhold the lowest price or best deal from their constituents. And consumers know precisely where to find local officials if they want more information about energy buying groups. Local governments have acted, on behalf of constituents, to aggregate services such as police and solid waste services in the past so its just another service that the local government can offer its constituents. Convinced that local government can offer its constituents an invaluable service by aggregating, municipalities in other states have started aggregating their towns.