In the early part of the last century, municipality-owned power companies were common.  In most cases these power plants were efficient and able to produce electricity well beyond the needs of the community.  At the time, laws prohibited a local government-owned light company from providing services to another.  That changed in 1915 when an act was passed by the Pennsylvania Legislature that allowed municipalities to sell electric power to adjacent communities.

The Pennsburg power plant building, built in 1907, stood  along the Reading Railroad tracks just off Seminary St., in the rear of the building occupied by Jurin Roofing.

            Local governments were now able to run power lines throughout their communities and purchase electric power from their neighbors.  Among the large electric suppliers around here was the plant owned and operated by Pennsburg Borough.  Another operated for a period of time in Sumneytown.  Six major electric lines fed power to the homes and businesses of the area.  They were the Palm, East Greenville, East Greenville Farmers Inc., Pennsburg, Red Hill, Green Lane, and the James Miller line that supplied Sumneytown.  In 1923, the Pennsburg plant supplied current to all of those lines. 

            From 1907 through 1922 large, regional power suppliers couldn't compete with the locals, whose profitability had a direct impact on taxpayers.  Giant utility companies from the Lehigh Valley and Norristown tried unsuccessfully to buy up the local power companies and their infrastructure - that all changed in early 1923. 

            The constitutionality of the Act of 1915, followed by a court decision in a related case involving Lansdale Borough, sounded the death knell for the prospering local 

government electric companies.  Once again municipalities were no longer allowed to 

When first opened in 1907, the power plan operated with this pair of oil burning engines.  They were  found to be inefficiant and were replaced with coal burning steam engines.

sell electricity outside of their boundaries.  Without the added customers, municipalities (and their taxpayers) would no longer reap the profits of having a power-generating plant.  Faced with the prospect of losing money local officials needed to make a timely decision or face the consequences.

            Knowing the dilemma these small municipalities faced, the power giants moved fast.  By May 1923 the Counties Gas and Electric Company of Norristown and the Pennsylvania Power and Light Company (PP&L) of the Lehigh Valley had both filed petitions for the exclusive franchise to supply power to this area.

            The May edition of the Town and Country reported that PP&L had already tendered an offer for all six of the local lines.  The first to consider the offer was the village of Palm, which granted a 60-day option for the sale of its line for $6,700.  East Greenville was considering a $30,000 offering for its line.  Officials from Red Hill and Green Lane stated that they "had no intentions of selling unless Pennsburg sells their plant."  At the time Pennsburg had no intentions of selling the electric plant. 

            Local officials sought a joint meeting, among all concerned, to discuss the future of electric service in the Upper Perkiomen Valley.  Among the items discussed was the potential that local government-owned electric companies could be forced out of business by limiting their customer base.  Towns without an electric plant were at the most risk.

            A week later, East Greenville sold its electric lines to PP&L.  For the time being, Pennsburg would continue to supply the power, but the Lehigh Valley power company owned the overhead power lines.  Sumneytown sold its lines to the Counties Gas and Electric Company about the same time.

            The boroughs of Pennsburg, Red Hill, and Green Lane were still holding out.  Pennsburg officials instructed their solicitor, Wallace Keely, to file an appeal to the granting of the restricted charter privileges to PP&L and Counties Gas and Electric.  Red Hill and Green Lane followed suit. 

            By the middle of June, and before being granted the power charter, PP&L raised its offer for the purchase of the Pennsburg, Green Lane, and Red Hill holdings.  Pennsburg was originally offered $90,000, Green Lane $14,500, and Red Hill $12,250.  This time the offer rose to $127,000, $18,000, and $15,000, respectively.

            Faced with the possibility that their power supply agreements might soon be ruled invalid, the three municipalities agreed to sell their holdings to PP&L. 

            On the day the sale was announced, a front-page editorial in the Town and Country simply stated: "Our plant was our pride.  But the best thing for the community had to be considered.  The opinion of Judge Swartz in the Lansdale case had weight with Council and they could not conscientiously have done otherwise.  We held on for as long as we could.  To hold on longer might have proven disastrous to the boroughs financially."

            Pennsylvania Power & Light Company was to take control of all holdings on July 2, 1923.  That didn't happen on schedule.  The Pennsylvania Public Service Commission failed to grant the exclusive franchise for supplying electricity to the Upper Perkiomen Valley.  They were still weighing the testimony from arguments presented by PP&L and the Counties Gas and Electric Company.  Everyone would have to wait until August to see who would be awarded the franchise.  PPL won that one.