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Senate of Pennsylvania
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted:	December 12, 2014 01:53 PM
From:	Senator John C. Rafferty, Jr.
To:	All Senate members
Subject:	Municipal Bulk Electric Purchasing

I will be re-introducing legislation, SB 552, to amend the Title 53, 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 and hopefully reduce their rates. 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. 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.

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