Borough Electric Rates Under Scrutiny By PA House Committee

HARRISBURG – The PA House Local Government Committee held a public hearing on House Bill 1405, legislation which would require borough electric providers to adopt more uniform and reasonable rate structures. Presently, 36 boroughs across Pennsylvania force their residents to receive electricity through power lines managed by the borough and are not given the option of purchasing electric from a provider of their choice. As a result, residents of these boroughs see their electric bills greatly fluctuate, sometimes increasing by factors of 100 to 200%, on a month-to-month basis without an increase in consumer consumption. The bill would require borough electric providers to calculate their rates the same way municipal authorities are required to calculate their rates. Under the proposal, boroughs would develop a uniform and reasonable rate based on several factors, including staff costs, repairs, debt service, and more. This rate would then be locked in for three months, with opportunities for readjustment at the end of each three-month period.

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