Constellation Energy is Troy’s new power partner

Published 11:00 pm Tuesday, September 11, 2012

Brian Davidson and Mitch Poindexter with Constellation Energy speak to those present at the Troy City Council meeting Tuesday at City Hall.

Two years ago, Alabama Power Company notified the City of Troy that they would no longer deliver power to the city at a rate controlled by the Federal Energy Regulatory Commission.

Instead, Alabama Power gave a required two-year notice with the offer to deliver power at a market-based rate. The Troy City Council and Mayor Jimmy Lunsford believed the rate offered on July 18 by the city’s longtime energy partner was not competitive enough and went in search of a better opportunity.

At Tuesday night’s city council meeting, the group voted to allow Lunsford to sign papers that would enter the city into a five-year contract with Constellation Energy.

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Lunsford explained that while uniting with Constellation Energy won’t reduce consumer rates, it will lock them in place for the next five years.

“Keeping our user fees as low as possible will also help promote a positive business environment,” said Councilmember Johnny Witherington.

“This is a big deal for us,” echoed Councilmember and Mayor-elect Jason Reeves.

Because the contract won’t be signed until Wednesday morning, the rate negotiated between the mayor and Constellation Energy is still confidential, but Lunsford relayed that the number is within the parameters set by the city council.

“Without this contract, we would be looking at substantial increases over the next five years,” Lunsford said.

Also at Tuesday night’s meeting, the council voted to collect money from the owner of a home at 1121 North Three Notch St. for the cost of demolition of building; to amend the plan for a Community Development Block Grant sewer project; to allow the mayor to accept a SCADC Nutrition Center grant; to approve the Alabama Department of Transportation resurfacing and widening of State Road 15; to partner with Pike County on several ATRIP repaving and repair projects; and to pay for a portion of a Soil and Water Conservation District funded project to alleviate a drainage problem on Park Street.

The next scheduled city council meeting is Sept. 25.