Last night the City Council passed a resolution that would let Paterson go through an online auction to find an energy supplier. The auction system is not much different from how eBay functions. Energy Market Exchange, a middle man auction place, will set up the bidding process, where companies, including local firms, will be able to place their bids.
On its website Energy Market Exchange, the Dallas based company, touts that it could save a municipality more than 30-percent on its energy bill. The company also promises the auction to be no more than 10 minutes, “Get the lowest possible price with a competitive 5- to 10-minute auction.” City Council members were more than happy to vote for a resolution that would possibly save around $100,000 for the Silk City.
The City has been suffering through cuts and shortage of tax income, and is seeking ways to save every dollar it can. Presently the City uses Public Service Enterprise Group or PSE&G as its sole supplier of energy; once the auction is setup and the bids start coming that could change.