Thurmont electric rates to drop in 2011
November 19, 2009
Thurmont electric rates to drop in 2011 Vickie Grinder
In 2008 it was predicted and the worst feared for 2011 electric rates would once again increase. Most felt the rate hike which occurred in 2006 were unaffordable and the thought of any relief in 2011 when a new contract would emerge, would most certainly remain bleak. Analysts predicted the increase would once again spike to yet a higher rate. Thank goodness they were wrong! Thurmont buys commodity from Allegheny Energy Supply and jointly goes to the bargaining table with Hagerstown and Williamsport. The current contract will expire on May 31, 2011, and the new contract with a lower rate will take effect June 1, 2011. Under the new contract the rate will drop about eight percent. Good news to say the least but what caused the rate to decrease? Changing market variables; supply, demand and new technology. I contacted William Blakeslee, CAO of Thurmont to verify the eight percent reduction when June 2011 rolls around. “Yes, we do negotiate purchase power agreements jointly with Hagerstown and Williamsport.” ”In early October we extended the term of our current contract due to expire on May 31, 2011 to May 31, 2013.” Mr. Blakeslee says the current purchase cost is $74.05/MGH and will reduce to $65.04/MGH on June 1, 2011 when the extension starts. Mr. Blakeslee adds, this reduction is a result of negotiations between the three municipalities and the supplier, Allegheny Energy Supply Company.” “The bottom line to our customers is projected to be between 8% and 9% reduction in their bills starting in June of 2011.” Blakeslee added a foot note saying this is a projection only, as there are other factors such as state taxes and universal service charges which may change between now and 2011. Mr. Blakeslee also notes these may affect the customer’s bill. Blakeslee ended by saying “It is good for our customers in this day of rising prices; the town will be able to reduce electric costs starting in 2011.” Definitely some long overdue good news for utility costs!
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