(5/25) The Town Council approved a month-to-month contract for electric power supply, a move that will cause fluctuating electric rates but could help to save residents money in the long run. The first one-month contract begins June 1.

At the April 16 meeting, Chris Simms, a principal of Smart Utility Management, a consultant who researches energy management for the Town of Thurmont, briefed the Council on the benefits of a month-to-month contract. With help from his expertise, the Council voted 5-0 to allow Simms to find potential suppliers who charge up to $45 per megawatt hour each month. The Council will then vote on the supplier each month.

Mayor John Kinnaird stressed the importance of letting residents know that their bills will fluctuate, whether up or down, each month based on the power purchase cost. The Town decided on the month-to-month option because they didn’t want to "lock in" the current high electric rates with a long-term contract.

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.

However, with electric rates expected to decrease eventually, the Town thought a month-to-month contract would be a better option. This way, the Council and Simms can analyze the rates and, when they have lowered enough, "lock in" the more desirable rates with a long-term contract.

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.