By Betsy Brewer Brantner
Contributing Writer

Oxford Borough Manager Pauline Garcia-Allen educated borough council and the public about potential electricity rate increases in Pennsylvania at the most recent Oxford Borough Council meeting. One of the main drivers behind the Pa. electric rate increase is a spike in capacity costs within the PJM Interconnection grid.  

PJM Interconnection is the largest electricity market in North America, managing the high-voltage transmission system and balancing supply and demand for electricity in 13 states and the District of Columbia. They act as a neutral, independent organization overseeing a competitive wholesale electricity market, ensuring reliable and efficient power delivery. 

In the PJM electricity market, if a utility or Load Serving Entity (LSE) fails to meet its capacity commitments, it may face penalties like the Fixed Resource Requirement (FRR) Commitment Insufficiency Charge. This charge is levied when an entity's capacity commitment is insufficient to meet the PJM Region Reliability Requirement. PJM uses a capacity auction system to ensure that there's enough power available when needed, and those who under-commit risk facing penalties. 

Obviously, capacity fees play a critical role in ensuring that enough power is available during periods of peak demand, such as scorching summer afternoons or frigid winter nights. 

Garcia-Allen explained, “In May of 2023, the borough executed a contract with Mantis Energy. We were notified by them that our contract would face an increase of $12,000-plus until 2027. There are many players involved: customer, transmission line, generator, etc. The PJM Interconnection grid controls everything.”

In June of 2025, Pennsylvania's electricity rates are expected to rise due to PJM's capacity auction, with potential increases of 5 percent to 16 percent for residential customers, according to PA Electricity Ratings. This is primarily due to higher capacity costs passed on by utilities to consumers. 

Who hasn’t asked themselves, “Why am I paying all of these charges?” An electric bill in Pennsylvania typically includes a customer charge, distribution charges, generation charges, and taxes/surcharges. The customer charge is a flat fee for basic service, while distribution charges cover the costs of delivering electricity to your home. Generation charges are for the electricity you actually use, and taxes/surcharges are added to your bill for state taxes and other fees. 

The borough is not exempt from the high cost of electric which will be facing all customers in Pennsylvania. However, they have successfully mitigated the increase of $12,000 at this point.

Also at the meeting, Oxford Borough Council, Police Chief Sam Iacono, Sgt. Chris Coverly and a host of visitors watched as Mayor Phil Harris swore in Jose Nava as a full-time Oxford Police Officer. Nava took the oath with his parents, Donna and Jose Nava, holding the Bible.

Sgt. Chris Coverly said, “It’s great to see a hometown guy joining our department.”

Borough council gave its approval to going to bid on Phase 1 of the improvements to Mt. Vernon St. This is the first phase for the Mt. Vernon Project. Council’s authorization was given conditioned on the solicitor’s final approval. The project will include a new water main from N. Third St. to Route 472, a new raw water line, and also improvements from the Oxford Sewer Authority. Approval for phase two is expected in the first quarter of next year. Grants and liquid fuel funds will be used to pay for the project. 

Council also gave its approval to extend the purchase agreement with EMEX, LLC a division of Mantis Innovation, for a fixed energy rate of $0.07631 per kilowatt hour, with 25 percent green energy sources for 24-months, effective December 1, 2027.

Garcia-Allen also informed council that she is working toward a kick-off meeting with consultants and townships regarding the Police Study update.

“We are planning a meeting with consultants and the townships,” Garcia-Allen said. “We are hopeful we will have something in hand at that time. We need other people and municipalities to join us. We will be discussing truck traffic, pedestrian safety and other concerns.”

Council also had a discussion regarding the Junior Council Person position, specifically the age and grade qualifications. Council agreed that the person should be a freshman through senior residing in the Oxford Area School District.

The next Oxford Borough Council meeting will be held June 16 at 7 p.m. in the Oxford Borough Hall.