Weatherly borough, one of only 35 municipalities in the state with its own electric utility, is poised for big savings starting next year.

And borough officials say they hope to pass along the savings to customers in the near future.

Council recently approved, by a 7-0 vote, a new five-year contract to purchase power, joining the other 34 municipalities in the Pennsylvania Municipal Electric Association. The contract locks in the borough’s rates through 2027. It will save the borough $200,000 per year, Mayor Tom Connors said.

“We buy our power, and when we buy it in years, we get a discount, we get locked in at that price. Because we are a group, sometimes we’re able to get a good deal,” Connors said.

Under the new deal, the borough will pay one rate — $59.45 per megawatt hour — for the next 10 years. That price is actually a combination of their existing rate, which ends in 2022, and the one approved last week, which runs from 2023-2027.

The borough currently pays $69.70 per megawatt hour for its bulk energy.

Council took the option of “blending and extending” their current contract rather than waiting until 2023 to get the savings.

“If this council was to look at ways to reduce your electric rates, this would be the way to go. Otherwise, you’re talking about reducing services,” Connors said.

The rate is simply for the purchase of power. Weatherly does not have control over its transmission rates. Borough Manager Harold Pudliner said the borough will be locked in at the current rate even through the peak of summer and winter, a practice known as load-following. Up until a few years ago, their co-op bought base power at a lower rate, but then paid higher prices to buy power in periods of high demand.

“We don’t have to worry about that. It’s a little more expensive, but it really isn’t when you work it out over a period of time,” Pudliner said.

Connors said that it will be up to council — including him — to determine how the savings is passed along to customers. He suggested that the savings could be different for residents and businesses.

“Our businesses, even though we only have a few, get hit pretty hard with electric fees. By accepting this agreement, we can lower our rates for the people who use it, both residential and commercial,” he said.

Connors said that the agreement shows that municipal utilities can save their customers, addressing a bill introduced earlier this year by Rep. Aaron Bernstine.

“When somebody tells us how our electric should be and they live 200 miles away, we do have opportunities sometimes to make it better, and council just showed them,” he said.