City hears options for electricity supply as contract nears December expiry

CQI Associates told the Taneytown mayor and city council on July 14 that the city's electricity supply contract, which runs through December, should be handled cautiously amid volatile market conditions and recent capacity and transmission price spikes.

"What we're gonna be talking about is your electricity contract that's coming due in December," Richard Anderson of CQI Associates said as he began the presentation. Anderson recommended an "energy-only" approach for an 18- to 24-month term, with the option to convert to an all-in fixed price later if market conditions improved.

Anderson said the city uses about 3,192,000 kilowatt-hours a year and that the supply portion of the current contract equates to about $239,777 annually; delivery charges to Potomac Edison (Pepco) add roughly $100,000, and taxes and fees add about $39,000. He noted the city could instead return to Potomac Edison's standard offer service, which the presentation lists at 0.1021 per kilowatt-hour through May 2026, producing a roughly…