Web Bidding Results in Savings for Taxpayers in South Jersey
For Immediate Release: February 23, 2009
Contacts: KEN SHUTTLEWORTH (609) 472-8837

Taxpayers in Camden and Gloucester Counties, as well as other jurisdictions in South Jersey, will save a projected $1.5 million over a two-year period because of an innovative new bidding process.

“The two counties and other participants will realize this savings because they formed the South Jersey Power Cooperative (SJPC), which conducts a ‘reverse auction’ to maximize economies of scale produced by the cooperative,” said Freeholder Edward T. McDonnell, deputy director of the seven-member Board of Freeholders.

In addition to Camden and Gloucester Counties, the co-op includes Collingswood, the Camden County Municipal Utilities Authority, the Gloucester County Utilities Authority, Camden County College, Gloucester County College, and the Gloucester County Vo-Tech School.

Camden County, the lead agency in the cooperative, is expected to realize $300,000 in savings over the two-year period, according to Dome-Tech Energy Advisors, the Edison-based firm that serves a consultant to Camden County to coordinate the reverse auction.

Under a contract awarded unanimously on Feb. 19 by McDonnell’s colleagues on the seven-member governing body, Pepco Energy Services will deliver power at a rate of $.09544 per kilowatt hour, compared to 10 cents since 2007.

Pepco competed in an Ebay-style auction on the Internet against one other supplier. “Each bidder was able to view the current lowest rate and decide on the spot whether to submit a lower number,” McDonnell explained. “The idea is to drive down bids and save taxpayers money by letting bidders see what the competition is offering.”

“This is one of many strategies we have adopted to control the cost of operations,” he added. “Our entire cost-containment effort has put Camden County on track to hold the line on property taxes for the third consecutive year.”

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