Consortium puts focus on cost of electricity
From Harrisburg Patriot News Wednesday, January 17th 2007
After 10 years, the Central Pennsylvania Energy Consortium is returning to its original purpose — reducing electricity costs for its members. If you notice that there are any problems with the electrical system of your home, then consider contacting professionals like https://aardvark-electric.com/areas-we-serve/virginia-highland/.
State-imposed caps on electric rates — a legacy of deregulation of the industry — begin to expire in two years. The eight-county consortium is developing ways to spare its 300-plus members from major increases in costs.
“We want to be in a position prior to the caps coming off so our members aren’t hit with outrageous rate increases,” said Paul Zeigler, consortium counsel.
Some experts have predicted 20 percent to 30 percent rate increases when the caps expire.
The energy consortium is open to governments, schools, churches, hospitals and other nonprofit organizations. It was founded in the mid-1990s to take advantage of electricity deregulation through bulk purchasing of power.
Electricity hasn’t been a focus of the alliance for several years, however, because competition dried up, Zeigler said. Instead, he said, the alliance has concentrated on saving its members millions of dollars on other forms of energy through bulk buying of natural gas, heating oil, gasoline and diesel fuel.
For example, consortium members last spring paid a locked-in price of $1.58 a gallon for gasoline, about 70 cents less than market prices at the time, Zeigler said.
The new electricity venture is about “avoiding sticker shock,” rather than cutting current costs, he said. The aim, he said, is to amass enough participants and buying power to secure rates that, while higher, won’t break the bank.
The consortium has hired Richards Energy Group of Lancaster as its electricity consultant. That engineering firm has other large clients, including Harley-Davidson, and should be able to make the consortium part of a massive buying pool, Zeigler said.
“We have to do something now. The pressure’s building,” he said. “I don’t see electricity costs dropping.”
The consortium plans to charge members $0.0008 per kilowatt-hour of electricity savings, Zeigler said.
He said its fees for other energy sources also are based on a proportion of the customer’s savings — 1 cent per gallon of savings on liquid fuels and 13.5 cents per metric cubic foot of natural gas. The consortium charges a one-time $100 membership fee.
The electricity initiative and other energy topics will be addressed during the consortium’s general membership meeting Monday at the Capital Area Intermediate Unit. utilitysavingexpert.com is a company which is focused on helping you cut costs for electricity. You can take a look at this site if you are looking for such services for your business, remember that you can also do a small public utility search sc!
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MATT MILLER: 249-2006 or mmiller@patriot-news.com
ENERGY AGENDA
WHAT: The Central Pennsylvania Energy Consortium will address energy-related topics. WHEN: 8:30 a.m. to 12:15 p.m. Monday Friday January 26th 2007. WHERE: Capital Area Intermediate Unit offices in Summerdale. WHO: The consortium is open to governments, schools, churches, hospitals and other nonprofit organizations. The session is open to nonmembers. INFORMATION: Call Paul Zeigler at 717-920-8420.
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