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City Electric rates started dropping

City Electric rates started dropping

Hagerstown, MD- Just in time to crank up your air conditioner, the City of Hagerstown's Light Department announced that its rates are starting to decrease for City light customers, which started June 1st of this year.
"In a time when the price of your basic commodities continue to rise, we're excited that City light customers will actually be able to see the price of something that they use everyday go down," said Michael Spiker, the City's Director of Utilities.
The City recently signed a wholesale contract extension with its current electric provider, Allegheny Energy Supply, at a rate that is 10 percent lower than the current rate.
"Allegheny Energy Supply has been our supplier since 2006," said Spiker. "We felt confident in signing a two-year extension knowing that we would be able to pass on a form of relief to our community," said Spiker.
The new rate became effective June 1, but residents will notice the drop in their bills beginning in August.
"We will receive our first electric bill at the end of June and the reduced rate will be a part of our monthly Purchase Power Adjustment calculation that will become effective in August," said Spiker. "The percentage of decrease is an average of each customer class, therefore depending upon usage the decrease will vary per customer."
Customers in the City are broken down into three specific rate classes: Residential, Commercial and Industrial. According to officials with the Hagerstown Light Department, the current average residential rate is 8.7 cents per kilowatthour (kWh). When the rate reduction becomes effective, that average will drop to 8.0 cents per kilowatthour.
The average rate reduction per class looks as follows:
Current Year June 1, 2011
Residential $0.087492/kWh $0.08012347/kWh
Commercial $0.097947/kWh $0.09057808/kWh
Industrial $0.078411/kWh $0.07104231/kWh
The individual monthly bill will vary based on usage or demand.
"We have always been proud of the fact that we provide not-for profit electric service to our customers at a significantly lower rate than other energy providers in our area," said Spiker. "This rate decrease makes that even better."
The City of Hagerstown Light Department serves over 38,000 people through its 17,500 customers.

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