City hopes to save $150,000 over span of three-year contract
by Ryan Marshall, Staff Writer
Hoping to lock in lower energy prices, Brunswick has entered into a three-year contract with an energy cooperative to provide the city’s electricity.
The city council voted 6-0 Tuesday to sign a contract with Texas-based Reliant Energy as part of an energy cooperative.
According to the terms of the contract, the city will pay $0.05161 per kilowatt hour. The city has traditionally paid about $0.0668 per kilowatt hour.
With energy prices expected to rise over the next three years, the contract offers long-term budget security, said City Manager Rick Weldon.
The city is hoping for a net savings of about $150,000 over the life of the three-year contract.
Buying electricity comes in two parts: the price it costs to generate the power and the cost of the system needed to deliver it, Weldon said.
Brunswick’s transmission costs go to Potomac Edison, but the power itself will come from Reliant, he said.
Cooperatives harness the buying power of many small businesses to equal the power of larger companies.
To become eligible to join the cooperative, Brunswick had to join the Frederick County Chamber of Commerce. The cost to join the chamber is $438 per year with a one-time $30 filing fee, Weldon said.