South Fayette expected to save money with new electrical supply contract
After the 2011 deregulation of the electricity supply market in Pennsylvania, South Fayette Township chose to stick with the utility it had been given rather than contract with a third-party supplier.
That changed Sept. 13, when the South Fayette commissioners voted unanimously during their regular meeting to enter a contract with OnDemand Energy Solutions and Direct Energy to supply the township with power.
“It should be a significant annual savings for us as it relates to our overall electricity usage,” township manager Ryan Eggleston said.
Karin Lund, OnDemand senior energy advisor, spoke to the board about the contract during the meeting. The township expects to save about $30,000 a year with Direct Energy, the largest energy consultant in Pennsylvania and Ohio.
The contract, which begins Oct. 1, was originally for 27 months, but after discussion with Lund about the future electrical rates and the chance of it increasing in the near future, the board agreed on a four-year contract instead.
“Nobody has the crystal ball. But when you take a look at these rates, where they are right now, I don’t think they can go much lower,” Lund said. “But in this particular case, I think the next time we go to negotiate rates, they’re going to be higher.”
Also during the meeting:
The board agreed on a 2018 budget schedule. The draft budget is due Nov. 3; a public hearing will be held Nov. 15; and the budget will be finalized Dec. 13.
The board also approved to accept a LERTA tax abatement application for TopGolf in Newbury Market. Eggleston said during the meeting the board will consider the application once the building is constructed.
Also relating the TopGolf, a public hearing was set for next October’s regular voting meeting about granting a liquor license to TopGolf – a three-level indoor driving range facility with restaurants and bars.
Editor’s note: An earlier version incorrectly reported the township would save $45,000 through the contract with Direct Energy.