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From the Vault: News from the May 23, 2012, edition of the Press & Journal

Posted 5/23/18

Auditors say electric trust lost $1 million

Middletown has lost at least $1 million from its electric trust fund, a fund created to keep electric rates low for borough customers, over the last 13 …

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From the Vault: News from the May 23, 2012, edition of the Press & Journal

Posted

Auditors say electric trust lost $1 million

Middletown has lost at least $1 million from its electric trust fund, a fund created to keep electric rates low for borough customers, over the last 13 years by investing the money improperly, borough officials said.

The losses suffered by the trust, created by a 1999 settlement between Middletown and MetEd over a lawsuit the utility filed to end a nearly 100-year-old sweetheart rate deal between the two, could reach “multiples of that,’’ once an audit of the fund is completed, said Chris Courogen, interim borough manager and director of communications.

Council voted 8-0 on Monday, May 21 to hire an attorney to explore “potential litigation’’ involving the investment of trust funds. The borough has a list of potential firms it could hire, said President Christopher McNamara.

The trust began with about $19 million paid by MetEd to settle its lawsuit to end a long-standing agreement with the borough to sell electricity to Middletown at a rate of 1 cent per kilowatt-hour, a bargain-basement price. Middletown resold the electricity to residents and businesses to make money to fund its expenses.

The trust fund has more than $10 million, though the borough does not know exactly how much is in the fund, said Courogen. An auditor will determine how much remains and recreate investment scenarios from the past to determine how much may have been lost, he said.

Officials will also try to determine who, if anyone, is responsible for investing funds in instruments not allowed by the trust fund’s agreement.

Raider advances in state track

Robert Doster kept his postseason alive yet again, and it was with another gold-medal winning throw.

The Middletown senior launched a District 3 best and state runner-up throw of 200 feet, 1 inch, to win the District 3 javelin championship Saturday at Shippensburg University.

He qualified for the state tournament next week back at Shippensburg, where Doster will be the No. 2 seed. District 7’s Billy Stanley, of South Park, was the lone thrower to outdistance Doster on district weekend, by a jaw-dropping 27 feet, as Stanley picked up District 7 gold with a 227-foot strike.

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