(March 24, 2016) A revised power agreement with American Municipal Power Inc. [AMP] should save Berlin electric customers an average of seven percent on their bills, starting in 2018.
The Town Council approved the execution of a new schedule, which starts on Jan. 1, 2018 and runs through 2020, during a public meeting on March 14. Two days later, Berlin signed the official agreement with AMP.
Town Administrator Laura Allen said Berlin locked in a guaranteed “entry level, basic price” of $38.97 per megawatt hour during that three-year timespan Currently, it pays $47.31.
“Customers won’t see this rate impact on their bill until Jan. 1, 2018, but the $47.31 rate is still significantly lower than what we had been paying under the previous contract, which ran out [last year],” she said. “The average residential customer will see about a seven percent reduction in their monthly bill, or about $9 per month.”
Allen said the average electric customer in Berlin uses about 1,000 kilowatt-hours per month. The new rate, she said, would mark a 17 percent decrease from the current one.
The rate drop, she explained, was caused by changes in the ever-fluctuating power market. Rather than use a traditional company, such as Delmarva Power, Berlin purchases its electricity from an outside source. The town signed a contract with AMP in February of last year, joining a pool of more than 130 municipalities in order to increase its purchasing power.
“After the previous two winters, because they were so cold, the power market had really shifted,” Allen said. “Now, it seems to have moderated a little bit, so we’re really just taking advantage of that drop in price.
“I’m pretty excited,” Allen added. “This is the stuff I live for. If I could make it happen faster, it would make me even happier. But it’s a significant savings, so we’re thrilled.”
Electric rates in Berlin have been dropping steadily, bringing the average bill lower during five of the last six years. Allen largely credited Electric Utilities Director Tim Lawrence.
“Part of that transition, from my perspective, was Tim Lawrence’s arrival about five years ago,” she said. “The town has made some good decisions about how it’s managing the utility, but having a professional utility director with the depth and breadth of experiences that Tim has, I think, has made a significant difference as well.”
The utility has also garnered national recognition for its dependability. During the March 14 meeting.
The Town Council approved the execution of a new schedule, which starts on Jan. 1, 2018 and runs through 2020, during a public meeting on March 14. Two days later, Berlin signed the official agreement with AMP.
Town Administrator Laura Allen said Berlin locked in a guaranteed “entry level, basic price” of $38.97 per megawatt hour during that three-year timespan Currently, it pays $47.31.
“Customers won’t see this rate impact on their bill until Jan. 1, 2018, but the $47.31 rate is still significantly lower than what we had been paying under the previous contract, which ran out [last year],” she said. “The average residential customer will see about a seven percent reduction in their monthly bill, or about $9 per month.”
Allen said the average electric customer in Berlin uses about 1,000 kilowatt-hours per month. The new rate, she said, would mark a 17 percent decrease from the current one.
The rate drop, she explained, was caused by changes in the ever-fluctuating power market. Rather than use a traditional company, such as Delmarva Power, Berlin purchases its electricity from an outside source. The town signed a contract with AMP in February of last year, joining a pool of more than 130 municipalities in order to increase its purchasing power.
“After the previous two winters, because they were so cold, the power market had really shifted,” Allen said. “Now, it seems to have moderated a little bit, so we’re really just taking advantage of that drop in price.
“I’m pretty excited,” Allen added. “This is the stuff I live for. If I could make it happen faster, it would make me even happier. But it’s a significant savings, so we’re thrilled.”
Electric rates in Berlin have been dropping steadily, bringing the average bill lower during five of the last six years. Allen largely credited Electric Utilities Director Tim Lawrence.
“Part of that transition, from my perspective, was Tim Lawrence’s arrival about five years ago,” she said. “The town has made some good decisions about how it’s managing the utility, but having a professional utility director with the depth and breadth of experiences that Tim has, I think, has made a significant difference as well.”
The utility has also garnered national recognition for its dependability. During the March 14 meeting.