Brubaker Electricity Procurement Legislation Signed Into Law
 
HARRISBURG – Legislation that would permit Pennsylvania municipalities to enter into contracts to provide lower energy costs for consumers was signed into law on Wednesday, according to Sen. Mike Brubaker (R-36).
 
Senate Bill 168, now Act 87 of 2010, will give boroughs the authority to take part in power supply and electric generation projects to secure affordable and reliable energy for consumers. The new law will allow boroughs that own or operate electric generation or distribution facilities to acquire electricity at the best value through memberships in non-profit membership corporations.
 
Pennsylvania gives municipal governments the authority to provide electricity service to its residents, but they did not have the authority to enter into money-saving electricity generation contracts under the previous law.
 
“The Borough Code gives a borough the right to provide electric service to its residents, but it did not give these municipalities the authority to fully leverage their purchasing power,” Brubaker said. “This new law will allow boroughs to negotiate the best possible deal to provide lower energy costs to consumers. A number of talented and dedicated individuals helped to make this change to the  Borough Code possible, and I am deeply grateful for their efforts.” 
The new law gives boroughs the flexibility to enter into different types of contracts with non-profit membership corporations for the generation, purchase, sale, exchange and transmission of electric power, including take-and-pay contracts and take-or-pay contracts.
 
“Participation in these projects will help municipal systems acquire long-term electric power at stable, cost-based prices, rather than at very volatile market-based prices,” said Ephrata Borough Manager Gary Nace, who played an important role in raising awareness of the issue.
 
Act 87 will also permit boroughs to advertise or solicit bids or price quotes if the borough council determines that action to be in the public interest.
 
The new law takes effect immediately.
 
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