Boro pols say electricity surcharge may be cut early South River hopes to save money by buying power in bulk

Staff Writer

By takesha pettus

Boro pols say electricity
surcharge may be cut early
South River hopes to save money by buying
power in bulk

SOUTH RIVER — Come the new year, residents might be able to keep a little more change in their pockets.

The Borough Council may be rescinding an ordinance that increased electric rates for residents this past year.

The rate increase in March was partly due to a decision that the borough made to purchase bulk electricity during 1999.

In December, the borough entered into an agreement with Conectiv Energy, Newark, Del., a bulk electricity supplier. With energy deregulation in the state, the borough had hoped to save money through purchasing electricity on the market.

But an unexpected sweltering summer in 1999 ended in the borough’s having to approve an emergency appropriation for $1.3 million in September in order to continue to purchase bulk electricity for the remainder of the year.

The emergency appropriation also left the borough with a deficit.

As a result, borough residents who used electricity were hit with an 18-cent electric tax rate increase for 2000.

The electric rate increase also prevented the borough from implementing an additional municipal tax-rate increase to homeowners, officials said.

At the Oct. 18 Borough Council meeting, Councilman Shawn Haussermann suggested that the council rescind the current ordinance for an electric rate tax increase at the end of the year.

"It serves only one purpose and that is to pad next year’s revenues," said Haussermann.

But that suggestion was set aside for discussion at the next council meeting.

On Monday, however, council President David Sliker announced that the borough would likely introduce an amendment to the ordinance at tonight’s council meeting, which is scheduled for 7:30 at the library in South River High School.

Sliker said the increase was extended into 2001 in order to provide a cushion should revenues fall short of the projected rates. The amendment would rescind the current tax rate increase come January 31.

According to Sliker, borough Business Administrator Charles Kolakowski has also provided electric utility revenue projections which suggest that the borough is again on track for electricity purchase for 2001.

"Because year-to-date projections have met their goals, it is possible to end the surcharge one month early," said Sliker. "This should save South River electric consumers an estimated $75,000," he added.