ZELIENOPLE — Officials voiced their opposition Monday night over potential new legislation that could affect the borough’s management of electricity.

Borough council unanimously voted to sign the Defense of Municipal Electric Systems in Pennsylvania to formally oppose a bill being created by Rep. Aaron Bernstine, R-10th, that would limit how much a municipality can transfer from its electric fund to its general fund.

The bill would also give residents or electric customers the ability to file suit in the Court of Common Pleas challenging a municipality’s electric rates. The bill also would require municipal councils to hold public hearings before increasing or decreasing any rates.

Borough manager Don Pepe said the bill would have “severe consequences” to municipalities like Zelienople.

“This would severely cripple many boroughs if this legislation were to pass,” Pepe said. “This is something that happens all the time in the walk of life, but this is something that’s really important to us.”

The borough is one of 36 municipalities in Pennsylvania that operate and manage their own electricity. Chambersburg would not be affected by the bill since it creates its own electricity. The other 35 municipalities, including Zelienople, purchase electricity in bulk from other companies and distribute it to consumers.

Zelienople has a fixed electric rate, meaning the borough eats money if electricity costs are over budget. However, the borough can also make money that would go back into the general fund if costs are under budget. Electric consumers do not see changes in prices on their bills.

“This way, the utility customer (residents) don’t suffer from this,” Pepe said. “I’m hoping negotiations can be made to fix this before any law becomes enacted that would be harmful.”

Bernstine said he is creating the bill, currently in its drafting stage, to drive down electric costs without using funds as a “taxation tool.” He also said he got the idea for this bill from Ellwood City’s adjusted electric rates causing increased costs.

“These residents don’t have the choice for supplier choices,” Bernstine said. “What we’re trying to solve is the fact that some people have significantly high electric rates in these boroughs.”

Bernstine hopes to have the bill ready for consideration by the state in about two weeks and to have support from constituents.

The requirement to hold public meetings is “no big deal” since every meeting councils have are publicly advertised, said Dave Woglom, executive director of the Pennsylvania Municipal Electric Association.

However, Woglom said he is “dumbfounded” over the logic behind the part of the bill that allows people to file suit against municipalities.

“People can file suit now over anything they wish already,” Woglom said.

Pepe said the borough would have to consider a few options if the bill were to pass, including a millage increase and budget cuts.

“It’s ridiculous,” Pepe said. “Is there a way to fix this? Yes. It’s a matter of the Ellwood City folks and PMEA coming together and saying, ‘How do we fix this problem?’”

Ellwood City Mayor Anthony Court said he hopes that things can be worked out between the borough, Bernstine and residents.

“I really hope steps can be taken to get relief for residents, if possible,” Court said.

But Bernstine called the municipalities’ electricity practice “inappropriate.”

“Municipalities shouldn’t be in business to make money,” he said. “They’re in business to serve their constituents and provide them the best quality product at the lowest possible price.”

Woglom said he does not support the legislation and hopes all 35 of these areas that will be potentially affected by the bill will sign the defense resolution to voice their opposition. The resolution was introduced to municipalities last week.

“We’re not happy about the language,” he said. “It’s not necessary. The value that we believe that public power provides to residents and businesses is tremendously high.”