HAGERSTOWN -- Electricity customers in Hagerstown are expected to save about 8 percent under a new contract extension with Allegheny Energy Supply.
The Hagerstown City Council on Tuesday approved the two-year extension, which will take effect June 1, 2011.
Under the extension, the rate per megawatt hour (MWh) in Hagerstown will drop to $64.85 from the current rate of $71.89.
The roughly 10 percent drop in the rate is not the same as the savings for customers, according to Michael S. Spiker, the city's director of utilities.
In an e-mail, Spiker wrote that the rate decrease is due to "market changes within the capacity futures market and energy futures market."