The Thurmont Board of Commissioners approved increased electric rates on Tuesday, which will take effect in January.
The new rate is an approximate increase of 14.6%, or $18 per month, for an average usage of 1,000 kilowatt-hours per month.
The board voted unanimously for the increase at Tuesday’s town meeting. Commissioner Bill Blakeslee was not in attendance.
The commissioners emphasized at the town meeting they were disappointed in this action but said it was necessary.
“None of us like it,” said Commissioner Martin Burns.
The town purchases its electricity directly from the PJM Interconnection market, according to Chief Administrative Officer Jim Humerick.
Since the town began doing so instead of signing a contract with a wholesale electricity provider, it has saved $800,000 in the last year, according to Mayor John Kinnaird.
Through this system, consumers pay exactly what the town pays with no markup, the mayor said at the meeting.
Thurmont has the third lowest electric rates in the state of Maryland after Hagerstown and Williamsport, according to data presented at the meeting.
The commissioners said the new rate was necessary as town operational costs have increased, including professional fees, security technology fees and maintenance budgets.
The town’s capacity charges, which are fees to ensure electricity generation meets peak demand, increased to $1.5 million from $300,000 earlier this year, Kinnaird said Tuesday.
The charges are determined at PJM Interconnection’s annual capacity auction, and the town has no influence on it, according to Humerick.
This amount is capped for the next two years, and rates should be relatively stable unless energy prices increase, according to Chris Simms, the town’s utility consultant.
Simms, from Smart Utility Management, provides utility consulting services to municipalities on the East Coast.
“These are all costs we have zero control over,” the mayor said. “In order to service our customer base and keep our rates as low as we possibly can, these are the steps that we have to take.”
The town discussed other options, including solar energy, before deciding this was the best course of action given costs and needs, Kinnaird said.
At the meeting, Commissioner Robert Lookingbill said residents who are struggling to afford electric bills should speak to town staff members about affordability options.
“Don’t let your bill get ahead of you,” Lookingbill said.
Humerick said the town is looking to apply for the Maryland Energy Administration Local Government Energy Modernization Program, which is a grant program to support local governments in implementing sustainable energy projects.
Other expenses
At Tuesday’s meeting, the commissioners approved a $52,000 bid to Playground Specialists, based in Thurmont, for improvements at Carroll Street Park.
They also approved $20,640 to United Utilities to purchase 6,000 feet of underground electric wire. It was the lowest bid and met the town’s needed specifications.
Wesco offered two bids of $23,856 and $28,902 for two different types of wires — one of which was the same as in United Utilities’ bid.
The commissioners introduced an ordinance for amendments to the fiscal year 2025 budget to introduce revenue and expenses not previously recorded in the budget.
Amendments included revenue from grants, impact fees and interest income. The expenses included equipment for the police department, communications fees and credit card processing fees.
The commissioners will vote on adopting the ordinance on Sept. 2.