Perth Amboy Business Administrator Greg Fehrenbach

PERTH AMBOY – A compelling presentation was given to the Council at the 8/12/13 Caucus Meeting by Mike Stoller from EMEX, LLC.

EMEX is an online auction company who helps business of helping businesses and municipalities find the most cost effective energy prices.

This company has been in business for four years and it has been approved by the D.C.A. (Department of Consumer Affairs) for the last two years.

EMEX works with 3rd party suppliers of electricity. With your average auction, when there is a bidding war taking place, prices will go up. EMEX uses reverse auctions where the electricity prices go down.

Representatives from EMEX first met with City Employee Gary Muska from the Purchasing Department. Muska supplied at least one month of the City’s electricity bills for EMEX to analyze. Pertinent information is sent to electricity providers in the State, who would be able to bid on supplying electricity to the City.

These suppliers will only bid on the supply portion. During the auction process the suppliers of electricity can see the prices the other bidders are offering but not the names of the bidders. When there are 2 minutes left during the auction, there is a chance for the suppliers to rebid. If there is not a last minute bid in that 2 minute time frame, the City of Perth Amboy will have an option of accepting the lowest bid.

According to Stoller, the City of East Hanover, NJ saved $55,000 a year when they went to auction bids. He told the Council that Perth Amboy can probably save $55,000 a year on street lights alone – and that is a very conservative estimate.

The rates are locked in for a maximum of 24 months if the City accepts the bid. The City will get one bill for electricity – not two like it currently does.

EMEX gets paid by the winning bidder and the rates will not be affected by any natural disasters.

The energy savings will pertain to general services, street lights and City buildings.

Business Administrator Greg Fehrenbach said that PSEG will still provide the transportation fees and the City currently pays 8.9 Cents per Kilowatt Hour to Direct Energy.

The Amboy Guardian contacted Business Administrator with a follow up phone call a few days after the meeting. Fehrenbach stated that the City will potentially save approximately $160,000 over the course of 2 years.

For more information go to www.emexpower.com