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Clean energy bill, a potential cost to residents

Danielle Ryan

(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.

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