Lehighton has forged ahead with an energy proposal to offset an electricity charge jump.

Borough council on a 4-0 measure Monday accepted the NextEra energy electric rate proposal.

Council members John Kreitz and Autumn Abelovsky were absent.

Borough Manager Dane DeWire said, “We are recommended to take this.”

DeWire said the borough’s electric capacity charge jumped from $202,000 in 2024 to $727,000 in 2025.

DeWire said the spike in cost at the most recent capacity auction emergency meeting for all Eastern Pennsylvania NextEra contract holders.

He said NextEra offers a 26.8% discount on electricity in 2025, with a return-to-normal rate beginning in 2026.

DeWire said the borough’s cost electricity is unexpected to rise by 2.6% from 2027 to 2032.

“This comes with a trade-off to extend the contract to 2032,” he said.

Originally, DeWire said the borough’s contract was scheduled to terminate in 2029.

“The plan is to use the inflated 2025 revenue to mitigate that 2.6% yearly increase to a smaller percentage for consumers,” he said.

Also on Monday, council accepted a resolution for the execution of the fifth amendment to 2013-2017 non-pool energy purchase schedule with American Municipal Power.

Council also at that time discussed the 2025 electric rates, for which DeWire said the borough’s electrical engineer recommended a $0.003 per kilowatt hour increase across all account holders.

He said that would represent a 1.825% increase to the highest commercial rate customers.

DeWire added that even with that increase, the borough would remain around 9% below PPL rates.

Council didn’t take any action on the rate change.

The matter is expected to be discussed at next month’s council meeting.

NextEra handles the borough’s purchase power agreement with American Municipal Power out of Columbus, Ohio, where its electricity is sourced.

DeWire said in September that multiple municipalities across the state who supply their own power met in Kutztown to go over the December capacity purchase.

He said at that time that NextEra presented numbers that suggest a 20% increase across the board for all electric companies across the state.

NextEra, DeWire said, is planning to address the spike in costs by trading two years of lower rates in exchange for a three-year extension to their contract.

The contract was originally supposed to terminate in 2032, he said.

After two years of lower rates, DeWire said the hope is to take that additional net revenue and subsidize electricity rate spikes in the near future.

The borough has owned and operated its own electric system since 1943.

The borough is responsible for the distribution system and utility billing.