By Allison Perrine
MIDDLETOWN – Middletown is expecting to save a significant amount of its energy costs this year, as the township moves to 100 percent renewable energy in 2020.
Announced Earth Day, April 22, this new agreement will allow the township to power all of its municipal buildings with renewable resources while saving an estimated 10 percent, or $49,000, on its energy costs over previous years.
“Not only are we able to achieve environmental victory by going to 100 percent renewable energy, but we’re also renewing our commitment to the taxpayer by saving upwards of 10 percent of what we have spent previously,” Mayor Tony Perry told The Two River Times.
Traditionally, Middletown purchased its energy through an aggregation group with multiple municipalities to obtain cheaper rates, said Perry. But that also meant less flexibility. Through that agreement, the township was operating on about 21 percent renewable energy.
With the contract’s expiration approaching, township officials decided to look at additional options. They hired Tradition Energy, an independent energy risk management and procurement advisor, to help them select a new supplier. This gave the town “the ability to react quickly to market opportunities or pursue unique goals such as purchasing renewable energy and constructing on-site solar generation on our land,” said Tony Mercantante, township administrator.
The township then looked at multiple scenarios and cost structures to determine what the best option would be. Officials examined what the costs would be if renewable energy bumped up from 21 percent to 25, 50 and 100 percent, and made a decision from there.
The change also arises as the township plans for its future 72,000-square-foot town hall and demolishes some of its existing and outdated buildings. The $56 million project will be completed with Brandywine Acquisitions and Development, part of the Brandywine Companies headquartered in Pennsylvania. The company will pay for building construction costs and will charge the township about $3 million annually through a 30-year lease. After that, the township will reclaim ownership of the land, which is currently a parking lot next to the existing town hall.
“We wanted to start fresh when the new building is in place,” said Mercantante. “We didn’t want to be tied into an old agreement that might not have been appropriate for a brand-new building.”
And savings on utilities might not end there, Mercantante and Perry said, as the township may do something similar next year with its gas bills.
“Middletown Township has achieved what more and more municipalities are learning – you can have it all – both meet your renewable energy goals and reduce your costs,” said Alan Kurzer, CEO of Tradition Energy. “Our hats are off to the hard work everyone did to make this procurement victory possible for the Township.”
The article originally appeared in the April 30 – May 6, 2020 print edition of The Two River Times.
