Greater Latrobe School District eyes $30K reduction in electric bill

Greater Latrobe School District expects to slash $30,000 from its annual electric bill if it locks in a price now for 2021-22.

The school board, at its Feb. 18 meeting, will consider a one year electricity procurement agreement with Direct Energy, setting a rate of slightly more than 3.7 cents per kilowatt hour for the period from May 1, 2021, through May 1 of the following year.

Citing market forces at play, and a review of those forces by Greater Latrobe consultant KEYTEX Energy, district business administrator Dan Watson explained in a memo, “recently, the (electricity) rates dipped, making it an attractive time to lock in rates for future years. Because of the need to act quickly, the finance committee authorized the administration to begin working with KEYTEX to seek competitive bids for future electricity rates, as well as lock them in, prior to full board action.”

The proposed agreement sets an energy price for electricity but does not include a cost for energy capacity.

“Because the district has been more active in participating in voluntary summer curtailments, we’ve been able to control energy utilization, resulting in a reduction of capacity costs,” Watson wrote. “We plan to continue this approach, so have chosen not to lock into a fixed price, which would include capacity.”

Seeking advice from the same consultant, Greater Latrobe in January locked in a price of $2.596 per thousand cubic feet of natural gas, also from Direct Energy, satisfying about 30% of the district’s projected need for the fuel from Sept. 1, 2020, through Aug. 31, 2023. That resulted in an expected $17,000 reduction from the district’s previous gas bill.

The board in June approved a rate of $2.823 per thousand cubic feet — again, from Direct Energy — for the larger 70% of its projected gas needs during the same period.