State Representative Aaron Bernstine proposed a bill to address fluctuating electricity rates in Beaver and Lawrence Counties.

The bill would prohibit towns with municipal-operated electric systems from transferring money from electric funds into general funds: payment in lieu of taxes. That money helps pay for public works projects and keeps property taxes low.

“If this law goes through as he’s proposing, there’s going to be a crisis. Financial and operational public services crisis,” said David Woglom, the executive director of the Pennsylvania Municipal Electric Association.

Berlin Borough in Somerset County is one of the 35 municipalities. Leaders said the proposed legislation would drastically hurt the economy.

“We would have to generate in taxes probably about half a million dollars in taxes to keep Berlin running,” said Brett Custer, Berlin Borough Council President.

Berlin leaders said if the state starts regulating municipal electric systems, it would reduce services for residents and raise taxes.

“We are not going to be able to pay for public works, we’re not going to be able to pay for our police department. So there’s going to be cuts. It’s either raise taxes and real estate taxes or be able to have this funding available to us,” Custer said.

The final draft of the bill should be proposed in the Pennsylvania House of Representatives sometime in the next week. At that point, borough leaders plan to lobby against the bill and fight for local power.

“Those are the people who are elected by the local community. Those are the people who know the challenges and situations in each of those municipalities so we don’t believe there’s anything broken, in any way, in the system that exists,” said Woglom.