Bernstine: Ellwood City Electric Legislation Clears Major Hurtle
4/17/2018
HARRISBURG – Taking the first major step toward protecting local residents from skyrocketing electric bills, the state House of Representatives today approved legislation, authored by Rep. Aaron Bernstine (R-Beaver/Butler/Lawrence), to bring additional oversight to the business and spending practices of Ellwood City Borough’s electric company.

“Today’s vote was a big win for Ellwood City residents,” Bernstine said. “We are one step closer to stopping the egregious behaviors of Ellwood City electric through legislative oversight.”

House Bill 2030 would require more uniform and reasonable rate structures to be adopted by the borough-run electric company. Specifically, the bill would require the Borough of Ellwood City to calculate its electric rates based on several factors, including staff costs, repairs, debt service and more. The rates would then be locked in for three months, with opportunities for readjustment at the end of each three-month period.

“Families, individuals and especially our seniors on fixed incomes deserve predictability and fairness in their monthly utility costs,” Bernstine said.
Bernstine also noted that the proposal would stop the use of Ellwood City electric as a taxation tool.

“Ellwood City residents are unfairly trapped in a modern-day electric monopoly, and it’s being used to compensate for poor spending decisions,” he said. “This legislation would force Ellwood City to operate like the other 98.6 percent of local governments in Pennsylvania.”

Bernstine pointed to an example in 2016, when Ellwood City overcharged its electric customers to fill a $1.45 million hole in its general fund budget. This amounted to nearly 30 percent of its entire $5 million budget.

House Bill 2030 now moves to the Senate for consideration.

“I’ve been working with Sen. Elder Vogel and other community and state officials to increase consumer protections, and I’m happy to report we’ve cleared the first hurdle.”

Representative Aaron Bernstine
10th Legislative District
Pennsylvania House of Representatives

Media Contact: Abbey Haslam
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