on So. River electric costs
Borough on projected
pace with cooler summer
By takesha pettus
Staff Writer
SOUTH RIVER — Electric consumption for the summer of 2000 was back to the borough’s expectation this year.
Borough Business Administrator Charles Kolakowski said the borough spent a total of $2,119,000 for bulk electricity so far this year, on budget with what the borough expected.
"I think we’re right on projection," said Kolakowski.
The borough has allocated $3.3 million for 2000 for bulk electric purchases in the borough.
A fairly mild summer this year allowed the borough to keep electricity purchases within budget.
During the summer of 1999, electric consumption soared between $16 and $163 per megawatt hour over what the borough had intended to pay for electricity.
The borough, which had used Public Service and Gas (PSE&G), Newark, as its bulk electricity supplier, entered into an agreement in 1999 with Milltown to hire Conectiv Energy of Newark, Del.
As a result of that agreement, Conectiv promised to purchase electricity for the borough at $36.70 per megawatt hour.
But the summer of 1999 proved to be much hotter than expected.
In May 1999, electric rates went from $210,000 in as much as $1,288,079 in July 1999.
Overall consumption in the borough also rose by 11 percent during the summer heat wave of 1999.
As a result of the increase in consumption and increase in electricity rates during the summer of 1999, the borough was forced to make an emergency appropriation in October 1999.
The borough was forced to appropriate for $1.3 million in order to pay overdue bills and bills for the remainder of the year.
In all the borough had to appropriate for an estimated $4.2 million instead of the anticipated $2.9 million in 1999.
As a result of the increase in electric consumption during the summer of 1999, the borough was forced this year to implement an 18 cent per kilowatt hour electric surcharge for electricity users in the borough.
The increase this year is expected to aid in paying back the $1.3 million emergency appropriation from 1999.
The borough has also gone back to PSE&G as its provider of electricity. Kolakowski said the decision to go back to PSE&G was based on a lower bid which the borough received from the Newark-based company.

