Chris Shearer
Contributing Writer
BERLIN — The Town of Berlin believes residents will see “significant savings,” thanks to a recently negotiated and revised power agreement with American Municipal Power Inc. (AMP).
The Berlin Town Council approved on Monday night the execution of a new rate schedule that will begin on Jan. 1, 2018 and run through 2020.
Town Administrator Laura Allen said Berlin locked in a guaranteed entry level or basic price of $38.97, which is down from the current rate of $47.31. With the average citizen in Berlin using around 1,000 kilowatt hours a month, this would be approximately a 17% reduction in cost.
“We would love to see the rates change earlier,” said Allen, “but that’s just not how the market works.”
Last year, Berlin signed a contract with AMP which saw the town join a pool of over 130 other towns and cities. The municipalities combine their purchasing power to negotiate better rates from power companies as a collective.
“It’s a combination of two things,” said Allen, “joining AMP and being able to purchase power as a group, and the ever changing utilities market.”
Allen further explained that the 2014 and 2015 winter weather patterns were such that it placed more demand on the larger PGM network nationwide. The increase in demand caused the projections on the cost of power to move up, thusly drying up the market in small utilities.
“The market has changed, and the town is taking advantage of the opportunity to lock in a better deal,” said Allen. “This is near the lowest rate we’ve had in the town’s history.”
Berlin Electric has lowered rates for customers five out of the last six years and also received recognition from the American Public Power Association (APPA) for outstanding service reliability.
The Washington, DC-based APPA is comprised of over 2,000 non-profit, community owned utilities companies.
Mayor Gee Williams praised the town’s Utility Director Tim Lawrence, while honoring him with a Certificate of Excellence at the meeting.
“Tim Lawrence brought with him a wealth of experience,” said Williams. “Berlin Electric is a very well run utility, if you compare our rankings to other utilities around the area and the country. It’s an excellent reflection of the Mayor and the Council that they turned that company around.”