(a) Specific powers enumerated.--In addition to exercising its general powers under section 24A02 (relating to general powers), a borough, through its governing body, shall have the following powers:
(1) To contract for the purchase, sale, exchange, interchange, wheeling, pooling or transmission of electric power and energy or for the right to the capacity of electric power, inside and outside of this Commonwealth, to and from any public or private power entities, private power companies, other boroughs and electric cooperative corporations. The sale of electric power to a borough for resale inside the limits of the borough and the sale of electric power by a borough inside the limits of the borough shall be exempt from the tax imposed under section 1101 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
(2) To regulate the use of and the charge for electricity furnished by the borough for use throughout the borough. A borough may fix, establish, maintain and collect or authorize by contract or otherwise the establishment, levying and collection of the rates, fees, rental or other charges, including connection charges, for the services afforded by or in connection with any properties which the borough constructs, erects, owns, acquires, operates or manages and for the sale or transmission of electric energy and power as it deems necessary, proper, desirable and reasonable.
(3) To procure insurance against any losses in connection with its property, operations or assets in the amounts and from the insurers as the governing body or bodies deem desirable.
(4) To contract for and to accept any gifts, grants or loans of funds, property or financial or other aid in any form, from the United States or any agency or instrumentality of the United States or from any other source.
(5) To lease, or otherwise grant the use of, and to make charges for the use of any property or facility owned or controlled by the borough.
(6) To procure from the United States or any agency or instrumentality of the United States, or from any state or agency or instrumentality of a state, any consents, authorizations or approvals which may be requisite to enable ownership, operation, construction or repair.
(7) To borrow money and from time to time to issue revenue bonds and to enter into agreements with the purchasers of the revenue bonds. A borough that incurs debt for the construction or purchase of an electric plant, or land on which to construct an electric plant, or gains an interest in an electric plant or project under section 24A02 shall incur the debt in accordance with and to the extent permitted by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing). Interest and principal paid on revenue bonds issued by a borough under this chapter shall be exempt from all State taxes of any kind or nature.
(8) To mortgage a property acquired or owned under section 24A02 to secure the payment of its revenue bonds or other obligations issued to finance the acquisition, ownership or repair.
(9) To sell, by ordinance, all or part of its electric works to a purchaser for the sale price agreed upon by the parties. After the sale, the price shall be deemed to be the purchaser's original cost less accrued depreciation of the plant at the date of purchase.
(10) To purchase the electric works of any person, partnership or electric company organized under the laws of this Commonwealth that is furnishing electricity to the borough or the public within the borough. The borough and the person, partnership or a majority in value of the stockholders of a corporation may agree upon the purchase price, except that, upon failure of the parties to agree on the price, the borough may proceed according to 26 Pa.C.S. (relating to eminent domain).
(b) Eminent domain.--In the erection and extension of an electric plant or project under this chapter and for all other purposes authorized by this part, a borough may enter upon, appropriate, injure or destroy private lands, property or material according to the proceedings set forth in 26 Pa.C.S. A borough shall not have the power of condemnation with regard to any property of a private or public retail electric supplier which geographically lies beyond the boundaries of the corporate limits of the borough.
(June 5, 2020, P.L.211, No.28, eff. 60 days)
2020 Amendment. Act 28 amended subsec. (a)(1). Section 3(1) of Act 28 provided that the amendment of subsec. (a)(1) shall apply to gross receipts received after December 31, 2016. Section 3(2) of Act 28 provided that the amendment of subsec. (a)(1) shall apply to sales to or by a municipal power agency or any borough owned or operated utility established on or before the effective date of section 3.
Structure Pennsylvania Consolidated & Unconsolidated Statutes