TAMAQUA — Tamaqua is getting closer to the ownership of borough streetlights through a purchase with PPL Electric Utilities Inc.

The subject was discussed briefly during Tuesday’s meeting of Tamaqua Borough Council, which officially entered into the sale agreement with a resolution adoption at its Sept. 19 meeting.

“We had a pre-construction meeting with PPL followed by a rebate meeting involving the streetlight acquisition project,” said borough Manager Kevin A. Steigerwalt in his report to the borough council. “The make-ready work is scheduled to begin Monday and finished by the end of November. We don’t know where they will begin and end, but we’ll get the word out to residents that these utility trucks will be in their neighborhood to work on lights.”

Steigerwalt added, “At the rebate meeting, we talked about the rebates we’ll qualify for after the conversion of sodium to LED. We also talked about the ongoing work at the water plant that may qualify for rebates, and the proposed work that we want to do at the sewer plant may also qualify for a PPL rebate.”

After the meeting, Steigerwalt said the next step is filing with the Pennsylvania Public Utilities Commission for permission to transfer ownership.

“We’re in the process of purchasing 483 streetlights in the borough. We had to make a decision, as all communities in the PPL Electric Utilities had the option, of purchasing their streetlights at the end of 2016,” Steigerwalt said. “Entech Engineering did the feasibility study, which said it would pay for itself in about eight years.”

As the borough applies and waits for PUC approval, PPL will begin the work to prepare the lights to be sold.

“Because it is PPL and they maintain them, they’re not as worried about the spacing of the lights with the other utilities because their linemen do this every day,” Steigerwalt said. “When they get ready to sell them, they want to make sure the spacing of utilities according to PPL criteria. They’ll put in fuses and mark them with tape to indicate that they’re not owned by PPL.”

According to Steigerwalt, the total represents only the purchase cost for the streetlight system. The conversion from high-pressure sodium to light-emitting diode fixtures will be an additional expense.

“Our estimate for conversion from HPS to LED fixtures is $220,000,” he said. “We anticipate having the engineering and design completed this winter with construction to commence in the spring.”

“The borough is purchasing the poles and wires that are used for streetlights only,” Steigerwalt said. “These 38 poles have no other attachments. The remaining poles are used by PPL and other utilities for power, phone, television, etc.”

Steigerwalt said financing to purchase the lights and conversion to LEDs is through Mauch Chunk Trust in Jim Thorpe.

“When PPL owns them, of course we get an electric bill that is based on the hours of daylight because they’re not metered,” Steigerwalt said.

“But in that streetlight rate you’re paying, there is a rather sizable lease/rental component, so you’re not just paying for energy. When you get rid of that, you get a customer-owned lighting rate. Then when you convert them to LED, you’re getting the LED rate, which is a lower rate, and any customer-owned LED lighting is even lesser still. That’s what we’re taking advantage of and that’s what will make it pay in about eight years. Now, we’re also responsible for the ongoing maintenance and operation, so you have to put aside some of that savings to pay for a contractor to change bulbs. LEDs last for 10 years, so that helps with the bottom line.”

Steigerwalt added, “We have RFPs (requests for proposal) for engineering to design the conversion. As they’re converted, we’ll tell PPL and they’ll give us credit on those lights with the new energy rate.”

Box:

Cost of lights

The cost of the sale of streetlights to Tamaqua, including the work costs to transfer the equipment to borough ownership:

• Sale price of lighting system: $65,510.

• Field inventory and engineering: $48,300.

• Pennsylvania Public Utilities Commission filing fee: $880.

• Complex make-ready work: $294,549.

• Simple make-ready work: $35,790.

• Total cost: $445,029.