(2/15) At the Feb. 13 Town Council workshop, Chris Simms, a principal of Smart Utility Management, a consultant who researches energy management for the Town of Thurmont, briefed the Council about the anticipated increase in the price of electric power supply costs for Town residents when the current contract with Energy Harbor, the current supplier of electricity to the Town, ends May 31.
The Town’s current contract with Energy Harbor to supply electricity to the Town was last amended in 2021, so, according to Simms, Thurmont was able to "lock in" a lower price at that time for its residents. When the contract ends in May however, indicative pricing shows residents will likely be forced to pay the current, higher price for their electric bills.
"The current power supply contracts give us the benefit of stability in pricing to our customers because we know exactly how much that power supply cost is going to cost throughout the life of that contract," Simms said. This past stability allowed the town to accurately forecast future power costs.
Residents are currently paying 5.484 cents per kilowatt-hour for their electric. According to Simms, the average monthly electric bill now is about $87 but could increase to $100 after the Power Cost Adjustment is made, a 15% increase. He went on to say that every other town and municipality across the United States has likely already gone through the price increase, except for Hagerstown and Williamsport, who are on the same contract schedule as Thurmont. Even if the increases were to come to fruition, Thurmont’s rates are still substantially lower than all others in the state, with the exception of Williamsport and Hagerstown.
Simms also explained to the Council that the suppliers’ quotes are predictions. While the Town needs to present a price to the Maryland Public Service Commission, the commissioners and mayor do not need to make a decision on an electricity supplier until the contract ends May 31. During that time, the price could change. "I would think that as we get closer to the end of May, Energy Harbor is going to have to lower their price," Simms said. "Otherwise, towns aren’t going to extend their contracts."
If Thurmont decides not to continue their contract, residents would be forced to pay the market price for electricity. While a long-term contract rate could be higher, locking in prices now could prevent residents’ bills from fluctuating wildly during peak demand periods – where rates could easily double overnight.
Commissioner Marty Burns suggested the Town "lock in" at the current rate and then "wait to see if the market drops in May." He pointed out that there was no risk to the Town, as Simms explained that a price increase is unlikely in the summer months. "There’s always a possibility that some freak event could happen, but it hasn’t happened in the last 14-15 months," Simms said. "I don’t expect it to occur in the summer time, you just don’t get peak prices in the summer anymore."
