PMLD has a multi-year energy purchasing strategy to secure and fix a portion of our Town’s energy costs at competitive, flat rates. This plan secured, at relatively low costs, a portion of our Town’s energy requirements for 2009 and 2010. Our membership in MMWEC is managing the purchase of these power contracts on our behalf. PMLD continues to review future long term energy contracts that benefit our ratepayers and help stabilize our electricity rates.

PMLD purchases a small portion of its energy requirements at ISO real-time and day-ahead market rates through MMWEC as well. PMLD instructed MMWEC to purchase energy in the day-ahead and real-time ISO markets, since our long-term energy contracts only address a portion of our energy portfolio. The price of this energy to Princeton fluctuates with fuel prices.

PMLD continues to participate in MMWEC’s Stony Brook III special project. PMLD signed a “letter of intent” and is committed to purchasing 1.0-1.5MW of energy from this proposed, natural gas fueled power plant located in Ludlow MA. PMLD believes this future power plant will help diversify our energy portfolio. This plant is expected to be operational in late 2013.

Generating and purchasing renewable energy makes a difference in our community. In FY2009, PMLD purchased approximately 15% of its energy from various hydroelectric power plants throughout the region. This renewable energy is purchased at very favorable costs compared to market and contract power costs. PMLD expects its new wind farm, made fully operational in January 2010, to provide approximately 40% of the town’s annual energy requirements in a renewable manner.