Cash-strapped York City is looking to shave $400,000 off its electric bill during the next two years.

The reason for potential savings is two-fold, said Jim Gross, the city's public works director.

First of all, electricity rates are at historic lows, he said.

Secondly, the city is taking advantage of its option to shop around rather than buy electricity from Met-Ed, which is the area's default supplier, Gross said. The significant saving makes it worth the extra time researching companies and rates, he said.

On Tuesday, the York City Council authorized city officials to execute a contract with Constellation Energy.

"I think it's a good time to be locking in," Gross told the council.

York first deviated from Met-Ed two years ago, Gross said, when the city first decided to explore cost-saving alternatives. He estimated Tuesday that York's electric bill was about $200,000 cheaper over the past two years because of that decision.

With the help of the Pennsylvania League of Cities, York officials have concluded that a renewed contract with Constellation Energy would save the city about $400,000 over the next two years compared to the past two years, Gross said.

The contract will apply to all 163 of the city's electric accounts, which include all facilities and street lights, Gross said.

- Reach Erin James at 505-5439 or ejames@yorkdispatch.com or on Twitter @ydcity.