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LEHIGH VALLEY WEATHER

Hess Energy discusses reducing energy costs

Hess Energy drove into North Catasauqua last Wednesday, April 24, not to sell gasoline to member municipalities of the Mid Eastern Counties Association of Boroughs, but rather to outline its program on how to reduce energy costs the boroughs pay for buildings and street lighting.

While the program captured the interest of the borough officials at the meeting held at the North Catasauqua municipal building, it was an informations session only.

No one entered into contracts with Hess Energy, but they did take the information back to their respective borough councils, mayors and borough managers to review and discuss.

Local officials who attended the meeting included Catasauqua Mayor Barbara Schlegel, Coplay Mayor Joseph Bundra and Secretary Sandra Gyecsek, Northampton Mayor Thomas Reenock and Bath Mayor Donald Wunderler.

North Catasauqua, which hosted the confab, had a delegation led by Council President Joseph Keglovits.

"All we are doing is giving you a better rate," Mark Tavares of Hess Energy told the borough officials.

PPL would still be involved and Hess Energy would supply the electricity for street lights or other uses the municipalities request.

Keglovits said North Catasauqua is paying PPL $30,000 annually for its street lights. He asked how much the borough would save if it used Hess Energy.

The savings would be $6,000 annually, he was told.

Borough officials were told Hess Energy, which is involved with the production of gasoline, is removing itself from the gasoline business and moving to the energy side.

It was said Hess Energy is one of the largest companies involved with natural gas and is also active in fuel oil, electricity and green energy technology and production.

Hess Energy is active with municipalities and has natural gas contracts locally with Essroc and Keystone Cement.

"We are very competitive with our electric and [natural] gas rates," a Hess spokesman said, adding Hess would offer the best price.

The market has become crowded since deregulation went into effect several years ago.

Contending Hess Energy could cut the boroughs electricity rates in half, the MECAB members were told they would still offer their distribution rates.

"We would just supply the electricity for the lights," said the Hess spokesperson. "All you get from Hess is a cheaper bill than you do from PPL and MetEd. Hess drills for gas and oil and the gas stations are run separately."

Schlegel, Bundra, Reenock and Keglovits told The Press they expect their boroughs will delve further into the potential cost savings presented by Hess Energy.