For Immediate Release
10/30/08

- Sen. Rafferty

Panel to Hold Hearing on Electric Procurement

Senate Local Government Committee will meet in Ephrata on Nov. 10th

The Senate Local Government Committee will hold a public hearing to receive testimony on the issue of "Municipal Electric Procurement" on Monday, November 10th, according to Senator Bob Regola (R-39), Committee Chairman.

The hearing is scheduled for 9:30 a.m. to noon at the Ephrata Borough Hall, 124 S. State Street, in Ephrata, Lancaster County, said Sen. Regola.

"Over the past year, the General Assembly has taken a number of important steps to lower energy costs and promote energy efficiency and conservation," said Sen. Regola.  "This hearing will focus on the issue of municipal electric procurement and specifically on the proposals included in three separate Senate Bills.  I believe the hearing will provide valuable information that will enable the Senate to move forward in this area next legislative session."

Senate Bill 1491, introduced by Senator Mike Brubaker (R-36), would amend the Borough Code to enable interested Pennsylvania boroughs to participate in electric generation projects and power supply arrangements.

"Currently, municipalities in other states are participating in electric generation projects and entering into power supply arrangements to secure reasonably priced and reliable power supply for their customers," said Sen. Brubaker.  "Given the current concerns about the price of electricity and other power sources, Senate Bill 1491 would enable our Commonwealth's boroughs to pursue additional opportunities for acquiring electric power for their customers."

Senate Bill 1507, introduced by Senator John Rafferty (R-44), would permit municipal authorities to act as aggregators to purchase electricity in bulk or negotiate with suppliers on behalf of their residents.

"The aim of my legislation is to significantly impact the generation prices by simply using the power of bulk purchasing in the competitive market system," said Sen. Rafferty.

A draft bill being introduced by Senator Jim Ferlo (D-38) would allow municipalities or council of governments (COG) to aggregate their residential and small commercial rate classes for the purpose of purchasing electricity in bulk for lower prices.

"Ohio has permitted municipal aggregation and those municipalities and COGs that have programs have been able to save 5 percent to 10 percent on their electric bills," said Sen. Ferlo.  "It is my hope that we can offer these same type of savings in Pennsylvania.

Contact:

Nathan Silcox
(717) 787-6063

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