Politics & Government
New Agreement to Save Township Thousands in Electricity Costs
A three-year deal with a private company could save Upper Nazareth Township more than $4,000 per year, supervisors say.
It will soon cost a whole lot less to light the streets of Upper Nazareth Township.
Supervisors unanimously approved an agreement with Premier Power Solutions, LLC, at Wednesday night's meeting in hopes of saving the township more than $4,000 per year in electricity costs -- based on current rates.
In the course of the three-year deal, the township will see its electricity rate drop to 6.97 cents per kilowatt-hour. Upper Nazareth will still receive an electric bill from Met-Ed; however, power will be generated through Premier Power, according to Supervisor Scott Sylvainus.
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Supervisors decided to lock in the 6.97-cent rate for three years rather than choose a one-year option at a slightly lower rate of 6.92 cents per kilowatt-hour.
According to Sylvainus, the one-year option would likely leave the township vulnerable to rate hikes in the future.
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“The general consensus is that as the economy improves, energy costs will go up,” he added.
Met-Ed rate caps were lifted in January as part of a plan to deregulate the electrical industry in Pennsylvania. Residential, commercial and governmental customers may now contract electrical generation and supply from third-party companies, such a Premier Power and Stream Energy.