(7/29) Residents of Thurmont may soon see an increase
in their electric bill, after recent modification to a state law regarding
renewable energy. Thurmont Commissioners are looking to fight back against this
new legislation.
Legislation by the state of Maryland was set years ago
requiring towns to receive a portion of power supply from renewable resources.
In May, standards regarding this legislation were modified, increasing the
percentage of electric required to be sourced from renewable resources. The
percentage jumped from 25% to 50%, and of that 50%, 14.5% would need to come
from solar power. Towns and cities in Maryland must meet that level by the year
2030. Governor Larry Hogan also has higher energy goals, and is looking for
Maryland to be 100% renewable by the year 2040. He may look to begin moving
this goal forward next year.
How will this bill affect residents? The town’s cost
per megawatt hour to purchase power from a solar resource jumped from $10 to
$60. Although the demand for solar power will see a vast increase, companies
are not building more "solar plants" quickly enough, thereby they cannot supply
solar power as quickly as it is needed. This means that costs must jump to
supply the needs of the state. The overarching thought is that this may entice
more companies to construct solar facilities to help meet the demand.
As discussed during the July 2 meeting, if the town
does not purchase power from these renewable resources, they will incur a
penalty fee (after 2030) of $22 per megawatt hour. The wholesale number of
megawatt hour needed/used by Thurmont is approximately 83,000, and by 2030 the
town would need 12,000-megawatt hours from solar power alone. This could mean
an annual increase of $250,000-$320,000 for the cost of just solar, causing
residents to incur an increase in tax rates in the future. "We have to be
prepared for the increase in the cost to buy the power," stated Commissioner
Marty Burns.
To combat this legislation, Thurmont will be looking to
ban together with other municipalities in the state cooperatives in an effort
to, hopefully, get the same treatment as the cooperatives. The cooperatives did
not receive the jump to 14.5% solar use; instead they remained at the original
2.5%. Going back to a 2.5% cap would give the town more time to "go green"
without weighing too heavily on their residents financially. Residents are
urged to reach out to local representatives to begin conversation on
reinstating the 2.5% cap.
Town staff will work with Easton Utilities to
investigate legislation to reinstate the 2.5% cap for solar. Staff will also
begin to look into the cost of installing a solar field to help defray the cost
of the future load of power.