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For Immediate
Release
11/10/08
State Urged to Support Local Procurement
Measures
Senate Local Government Committee hears
from municipal officials
Local government officials today (November 10) urged the
Senate Local Government Committee to support two Senate Bills addressing
municipal electric procurement issues.
Several municipal officials and advocates from government
associations testifying at the Committee’s public hearing in Ephrata Borough
Hall said Senate Bill 1491 and Senate Bill 1507 would make significant changes
that would lead to cost savings for consumers and municipalities.
“Over the past year, the Pennsylvania General Assembly has
taken a number of steps to lower energy costs and to promote energy
conservation,” said Senator Bob Regola, (R-39 and Chairman of the Local
Government Committee). “Today’s hearing was intended to lay the groundwork for
taking the next steps by giving the Local Government Committee and the Senate
essential background on these bills. It was important for us to hear from
municipal officials on these measures.”
SB 1491, introduced by Senator Mike Brubaker (R-36), would
amend the Borough Code to enable interested Pennsylvania boroughs to participate
in certain electric generation projects and power supply arrangements.
“Senate Bill 1491 is intended to give boroughs new options,
not mandate one choice over another,” Senator Brubaker said. “Currently,
boroughs in other states, through membership in a nonprofit member corporation,
are participating in electric generation projects entering into power supply
arrangements to secure reasonably priced and reliable power supply for their
customers. Given the current concerns about the price of electricity and other
power sources, these changes to the Borough Code are necessary to enable our
Commonwealth's boroughs to pursue additional opportunities for acquiring
electric power for their customers.”
Ephrata Borough is one of 35 Pennsylvania boroughs that own
and operate municipal electric utilities. Several members of borough council
attended the hearing and offered their strong support for Senator Brubaker’s
bill.
“Ephrata Borough Council believes Senate Bill 1491 is of
vital importance to the residents of Ephrata. Senate Bill 1491 adds important
tools to the toolbox of Pennsylvania boroughs that seek to procure reasonably
priced and reliable power for the benefit of their residents,” said Gary Nace,
Ephrata Borough Manager. “In the face of escalating wholesale power costs and an
ever-changing and complex wholesale market structure, Senate Bill 1491 provides
the flexibility to pursue innovative purchasing strategies, which is critical to
Ephrata Borough’s efforts to manage power costs on behalf of its residents.”
Kerry Claycomb, executive borough secretary for Berlin,
Somerset County, said passage of Senate Bill 1491 would boost his community’s
efforts to develop wind powered energy generation.
“The Berlin Borough Council believes the passage of Senate
Bill 1491 is extremely important to the future of the Berlin Municipal Electric
System and to the future cost of electricity that the residents and businesses
in Berlin Borough will bear,” Claycomb said. “The Berlin Borough Council both
urges and encourages the legislators of Pennsylvania to support and pass Senate
Bill 1491.”
SB 1507, introduced by Senator John Rafferty (R-44), would
amend the Municipal Authorities Act to permit municipalities to act as a
municipal aggregator authority to purchase electricity in bulk or negotiate with
suppliers on behalf of their residents.
“Although a local government's governing body may vote to
form a municipal aggregator authority to represent all the residents,
individuals would have the option to opt out if they believe they could obtain
cheaper rates from another supplier or return to their incumbent electric
company,” Senator Rafferty said. “Although this would not affect the
transmission costs for residents, it may have a significant impact on the
generation prices by simply using the power of bulk purchasing in the
competitive market system.”
Amy Sturges, director of governmental affairs for the
Pennsylvania League of Cities and Municipalities, said her organization strongly
supported Senator Rafferty’s bill.
“PLCM views Senate Bill 1507, sponsored by Senator
Rafferty, as a tool that should be made available to municipalities,” she said.
“We believe the legislation has the potential to be beneficial to municipalities
and their residents and should be available as another option for reducing the
cost burden.”
Contact:
Nathan Silcox
(717) 787-6063
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