Hatboro Drops PECO for Cheaper Energy Rates

With a goal of saving more than $30,000 over the next three years, the Hatboro Borough Council voted unanimously to switch from PECO to Constellation Energy.

The council last week approved entering a three-year contract with Constellation Energy, which Council President John Zygmont said takes effect in early January. The governing body had initially considered a four-year contract which projected a $36,000 savings, but instead opted to lock in rates for a three-year term.

"Even in the fourth year you're still lower than what we're paying now," Councilman Bill Tompkins said of the four-year rate prior to the vote. "In 12 months you’re not going to get that second rate, you’re going to get a higher rate."

But, Councilwoman Patty Fleming said she favored a shorter contract, which would give elected officials the opportunity to possibly move to a new energy provider in three years should rates be lower. 

"We might lose the ability to go elsewhere," Fleming said. "I think three years is the right thing."

Even with the switch - which is projected to save $30,320 in 36 months based on current PECO rates - PECO would still provide the energy transmission and would service any downed wires or power outages, officials said. 

Acting Borough Manager Fred Zollers said that since rates are locked in, the council would be able to know, with certainty, the cost of energy for its traffic lights, street lights, police and public works buildings, borough hall and lights at parks, which would enable the ability to "streamline" and simplify future budgets. 

Borough attorney Christen Pionzio, who had said earlier this month that she was unsure if the council could approve a contract beyond the term of the majority of the board, said on Monday that it was feasible to do so. 

"It’s proprietary and not governmental," Pionzio said.