Development Authority to sell power to Army

August 04, 1998|By DON AINES

CHAMBERSBURG, Pa. - The Army will buy its electricity from the Letterkenny Industrial Development Authority under an agreement in principle reached with Allegheny Power Co.

The authority announced the agreement Monday following an executive session with an Allegheny Power representative. Authority Chairman Robert Zullinger said details of the agreement will be announced later.

John Van Horn, the authority's program manager, said it will own the electric distribution system at the depot, and Allegheny Power will operate and maintain it. The authority would buy electricity from the power company, but customers, including the Army, will be billed by Allegheny Power at rates set by the authority.

"My assessment is we are going to be able to save the Army some money, providing they continue to use as much power as they are now," Zullinger said.

The price per kilowatt hour could go up if the depot is downsized further, he said.

Zullinger said the pending agreement will be for five years and the authority hopes to lock in the Army as a customer for at least two years.

With electric deregulation coming to Pennsylvania, he said the Army and other customers could shop around for other electric generation companies.

The Army eventually will turn over 1,500 acres of the depot, including the utilities, to the authority.

In another matter, the authority board decided to trademark Cumberland Valley Business Park as the name of the industrial park it is developing.

Executive Director Pam Gaudiose said the trademark protects the name for 10 years and would cost $52.

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