City, MUA Save Money By Participating in Purchasing Coop

Mayor Mark A. Smith announced that the City of Bayonne and the Bayonne Municipal Utilities Authority (MUA) will continue to save money by participating in the Hudson County Cooperative Purchasing System. That cooperative enables local governments to save money by bulk purchasing of electricity. Smith said, “Hudson County’s purchasing power is enhanced by joining forces with Essex County. This year, 21 local government units from Hudson County and 15 local government units from Essex County are participating in the electrical aggregation project. Bayonne is looking forward to reaping the benefits of this year’s bulk purchasing.” The local government units involved include municipalities, housing authorities, and utilities authorities.

In order to attract more advantageous electricity prices, the purchasing cooperative divided its accounts into three bid groups: 1) general power and light – for municipal buildings; 2) commercial/industrial for such larger buildings as the Hudson County Jail and Meadowview Hospital; and 3) street lighting. This is the first contract in which street lighting has been included.

South Jersey Energy, the current electricity supplier for the purchasing cooperative, was awarded the contract for general power and light, and for street lighting. The Hess Corporation was awarded the contract for the commercial/industrial category. For the purchasing cooperative as a whole, the new rates will generate savings in each of the categories: for general power and light, savings of 15.52%; for commercial/industrial buildings, savings of 26.21%; and for street lighting, savings of 24.80%. The exact savings for the City of Bayonne will depend on the amount of electrical usage in each category. The County of Hudson estimates that the local government units of Bayonne will achieve the following savings over the previous year’s electricity costs: City of Bayonne, savings of 28%; Bayonne Housing Authority, savings of 19%; and Bayonne Municipal Utilities Authority, savings of 40%.

Smith concluded, “Bulk purchasing of electricity saves money for Bayonne’s taxpayers. My administration will continue to participate in this purchasing cooperative and to explore other ways of making government more efficient.”

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