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Manager urges council to consider new energy contracts for borough accounts to lower streetlight costs
Summary
Manager presented bids from energy suppliers and recommended moving away from the current provider; he cited the borough's streetlight accounts are on a residential rate (0.0919) that costs about $48,000 per year and described proposals including a 12–48 month pricing option that could reduce annual spending.
Borough Manager summarized a review of the borough’s electricity accounts and supplier bids and asked council to consider authorizing a shorter-term contract to reduce streetlight costs.
Manager said the borough’s street-light accounts are currently “lined up for 0.0919,” which he estimated “cost us about $48,000 a year.” He said the borough solicited proposals from five suppliers; examples quoted in the meeting included bids with different term lengths and prices. Manager cited a 48‑month bid from Smartest Energy at roughly 0.08555 per kilowatt-hour and said a 24‑month contract is his preferred horizon to avoid locking in prices too long.
Manager said the borough has opportunities to change suppliers without cancellation fees (depending on contract language) and that procurement staff (Cindy and others) would review contract terms, including any notice or cancellation clauses, before council action. He said the potential savings over the longer term could be material — he referenced a 48‑month comparison that would save “$22,700” in one scenario — but that council should weigh shorter terms because energy markets move.
Why it matters: street lighting is a recurring municipal expense and changing supplier or contract length can produce ongoing operating savings. Manager said he will return with a formal recommendation after reviewing proposals and consulting with borough finance staff; no formal contract award was recorded in the transcript.
Notes on precision: prices and savings were reported by borough staff during the discussion and include approximate figures; the transcript records estimated rates and projected savings rather than executed contract terms.
