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Senator, owner meet to address surging electricity costs at Johnstown Galleria

WJAC · last updated

JOHNSTOWN, Pa. — The owner of the Johnstown Galleria is searching for solutions to keep the mall open after seeing his electric bill nearly double in just one month.

Mall owner Leo Karruli met Tuesday with State Senator Wayne Langerholc, along with several third-party energy suppliers, to discuss the sharp increase in energy costs and possible ways to manage them.

Energy experts at the meeting explained that electricity prices tend to spike during periods of high demand, particularly in extreme summer and winter months. They recommended a diversified energy strategy, similar to an investment portfolio — locking in fixed rates during peak seasons while remaining on a standard variable rate during milder months when prices are typically lower.

Karruli said last week that the mall’s electric bill jumped from $52,000 to more than $100,000 in a single month, an increase he says could ultimately force the mall to shut down if costs remain that high.

Senator Langerholc reviewed the mall’s bills during the meeting and said he could not explain why the electric rate increased from roughly 7 cents per kilowatt hour to 13 cents, but he did offer information about potential state assistance programs.

“With some dollars to help maybe make it more energy efficient — LED bulbs or also capital expenses — maybe an inefficient system might be in some way contributing to that,” Langerholc said. “So we were able to pass that information along and help him in any way going forward.”

Karruli also said executives at Penelec were meeting Tuesday to discuss the situation and that he is waiting to hear back from the company.

He says his goal is to keep the mall open for the sake of the surrounding community and the approximately 200 people who work there.