Coplay street lights back in the news
"Here we go again," quipped Coplay Councilman Charles Sodl at the May 14 meeting.
But the joke was lost on Hess Energy representatives Mark Tavares and Jarod Testa, who were there to sell a contract for lower electricity rates for street lights.
In 2009, the borough entered into an agreement with Municipal Energy Managers Inc. (M.E.M.) to negotiate the purchase of street lights from PPL.
The borough paid $160,182 but M.E.M. never did the work. M.E.M. principals Robert J. Kearns and Patrick McLaine were charged with theft, theft with failure to make required disposition of funds received and conspiracy.
Just to be safe, Sodl asked for clarification. "You're talking about electricity. You're not talking about the street lamps, the pole or anything else?"
Tavares and Testa confirmed PPL would continue to own the lights. Hess Energy would handle only the supply of power.
Currently, Coplay is paying 10.8 cents per kilowatt hour, said borough Secretary-Treasurer Sandra Gyecsek.
Hess Energy offered 6.75 cents for a one-year contract, 6.70 cents for a two-year contract or 6.6 cents for a three-year contract, said Tavares and Testa.
The cost savings would amount to approximately $4,800 for a one-year contract, $9,800 for two years and $15,000 for three, they said, noting they evaluated Coplay's electricity bills in order to come up with the figures.
"You're almost cutting your costs in half," said Testa.
In response to a question from council President Lou Bodish, Tavares and Testa confirmed Coplay would not have to pay any money up front.
In response to a question from Councilman Matthew Recker, Testa said the borough's rate would not change with market conditions because Hess buys the electricity at the beginning of the contract and cannot take advantage of lower market rates later on.
Councilman Joseph Groller asked if the borough would be able to get out of the contract if a lower rate was available on the market.
Tavares and Testa said no, but the borough could lower its costs for remaining time on the contract by extending it and "blending" rates.
The contract can also be structured so that the borough is alerted if the market rate changes significantly.
"The market's traded all day every day. Our job is to watch the market," said Testa. "Could it go lower? Absolutely. But you're mitigating the risk."
After some discussion about the merits of contract terms, council voted unanimously to enter into a two-year contract.
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In other business, council tabled a planned vote on the Young Lungs at Play program.
In exchange for passing a resolution banning smoking at all parks, Tobacco Free Northeast would provide the borough with free signs that say "No Smoking. Young Lungs at Play."
The smoking ban would have to include all parks, not just those with children's playground equipment.
Council members were also concerned about enforcement issues.








