Electricity savings eyed by officials
BY KATHY BARATTA
Staff Writer

MANALAPAN - Municipal officials recently heard a proposal from a utility company representative who informed them of a way in which the township may be able to save money on its electricity costs.

Gerard Ricciardi, Area Manager for Community Relations for Jersey Central Power and Light (JCPL), appeared before the Township Committee to discuss a plan he said could result in long-term savings.

Ricciardi said Manalapan presently pays JCP&L $12.90 per bulb, per month for more than 2,000 street lights (approximately $25,800). He said the fee covers the cost of energy, maintenance and the installation of bulbs as needed.

He offered a payment option known as a contribution rate plan and explained that with such a plan, officials would have the option of paying a one-time fee of $404.44 per streetlight bulb.

According to Ricciardi, the $404.44 one-time fee would reduce the monthly cost for a 100-watt sodium light bulb from $12.90 to $8.23 per bulb. That would yield a monthly bill of about $16,460 for 2,000 light bulbs - a savings of $9,340 per month.

Ricciardi said it would take 86.6 months or 7.2 years for Manalapan to start realizing the $100,000 annual savings. He said some municipalities do all of their lights at once and others stretch it out over a five-year period.

"It depends on how much capital you have to invest," he said.

Committeeman Richard Klauber explained that the up front fee of about $800,000 ($400 x 2,000 lights) would mean a cost savings to the township of about $100,000 at the end of a seven-year payout period.

He said at the end of seven years, Manalapan would continue to see the same approximate $100,000 savings annually. He likened the JCP&L proposal to buying an annuity.

Klauber said officials could raise the $800,000 through the sale of bonds or through the sale of a liquor license. He expressed his enthusiasm for the idea.

More discussion on the proposal is expected.

Ricciardi said some towns require the builder of a new subdivision to pay the $400 light bulb fee. He said when the town takes responsibility for the street lights it immediately gets the benefit of the lower rate.