Lehighton expects to save a large chunk of money on electricity.

Borough council recently took action to blend and extend its existing power contract, which will result in an annual savings of $533,358.

Borough Manager Nicole Beckett said the borough’s existing power contract had provided pricing through 2022, and that the borough had received a proposal for an extension of the contract for 2023-27.

“The proposal provided a lower price of our remaining purchasing requirements,” Beckett said. “In turn, the borough had decided to blend and extend the contract, resulting in an annual savings of $533,358.

Beckett said that through the borough’s power purchase, the borough seeks pricing five years in advance.

“With the action of Council, the borough had leveled the price of power purchase under our current term and stabilized the pricing for the extended term,” she said.

Beckett said the rate will be $61.86 per megawatt hour, compared to the current rate of $73.51 per megawatt hour.

The borough is one of only 35 municipalities in the state that owns its own electric utility, as Lehighton Light & Power is locally owned and controlled, has local employees, provides continual and reliable service and has local oversight.

In May, council approved a minimal increase in their electric rates.

At that time, council adopted a resolution fixing the electric rates.

The customer charge for the residential rate class went from $7.50 to $10; from $10.50 to $15 for general and commercial; from $15.50 to $20 for general and commercial over 500,000 kilowatts, and from $25.50 to $30 for industrial.

Beckett said at that time the original fee schedule resolution was voted on at council’s meeting in March, which set the electric rates, as well as other borough fees.

She said the adjustment approved at that time was to the customer charge, not the electric rate.

Beckett noted that marked the first customer charge increase 2009, and that electric rates hadn’t been adjusted since 2011.