When Shad Lewis of Sand Court, Ephrata, opened his electric bill Tuesday, he got a jolt.

His bill jumped from $179.36 last month to $637.56 for February, more than a 250 percent increase.

"I knew there was going to be an increase, but this … ," Lewis said. "Since I've been living at this address, at the worst, $230 a month in the winter."

And Lewis wasn't alone. Many of his neighbors' bills jumped anywhere from 100 percent to more than 250 percent.

Ephrata is one of 36 Pennsylvania boroughs classified as a municipal power supplier, meaning it can purchase electrical power from various providers and sell that power to its residents. For years, Ephrata has purchased most of its power from such providers as PPL and Houston-based Reliant Energy through multiyear contracts, allowing it to buy cheaper and keep rates lower than those found on the open market. Any profits are kept for the borough.

With the recent deregulation of the power industry, providers no longer offer contracts, forcing Ephrata to buy higher-priced power. As a result, the borough upped its rates 40 percent as of Feb. 1. Last year, Ephrata spent $7 million for electricity; this year, that cost is expected to be $15 million.

Residents expected the rate increase. What they did not expect, however, was that the borough would underestimate usage for January, which was unusually cold. Borough manager Gary Nace said the estimates reflected in January's bills were based on "a 12-month rolling average."

A letter accompanying the February bills states, "Since we billed you last month on a twelve month average of electricity used, we believe we billed you for too little electricity last month." The overage was billed at the January rate.

In most cases, bills were doubled or even tripled over last month's, leading residents to besiege Borough Hall with calls for explanations. Nace acknowledged that some bills were high, but stood by the amounts, saying they were based on kilowatt usage.

"They used the kilowatt hours, so they have to pay for them," Nace said.

To ease that burden, the borough said it will work with residents.

"If people can't afford to pay their bills, we are offering to spread it out over time," Nace said. "They need to call the business office and make those arrangements."

The borough also is waiving late fees for a month," he said.

"Big whoop," Lori Beatty of 137 Windsor Drive, said.

She saw her bill jump from $139.90 to $564.39, a leap she called "appalling."

"All people are going to do is get further behind," said Beatty, who budgeted $300 for electricity, based on the size of her house, her usage last year and the new rates. "I don't see how Ephrata borough is going to expect people to want to live here. I'm just really upset, and I don't know what we can do."

Lorraine Wert, of 262 Sand Court, said her bill went from $108.46 to $404.53.

"I've been frustrated ever since I got it, and I'm trying to find out how I can lower it," she said. "I'm very upset about it."

Erika Russo, of 336 Vista Circle, said her normal bill for January and February is "in the range of $200 to $250" with the highest being $298. The electric bill she opened Tuesday was for $602.

"I've never seen anything like this," she said. "It's absolutely insane."

James Eck, of 325 Lake Street, complained to Borough Council at its Monday meeting, saying his bill went from about $190 to $566.

"I can't pay this," he said. "My wife is worried you'll shut off our power because we can't pay our bill."

Many residents say the kilowatt hours reflected on their bills are double and even triple past readings and question their accuracy. Nace said the rate histories of some customers have been compared and similarities to February 2007 — "another very cold month" — were found.

The borough has been trying to get control of its energy costs. In 2007 it joined 126 other municipalities, including 26 from Pennsylvania, in American Municipal Power of Ohio, which currently buys power on the open market.

However, the borough hopes eventually to own generation capacity at several facilities AMP Ohio is building in Ohio and Kentucky. Nace said that would allow the borough to purchase its power "at generation cost," rather than through a large provider, which must pay dividends to stockholders.

"Our profits will remain in Ephrata to be used in the community," he said.

Nace estimates that would mean the borough could sell power to its residents at 20 percent below market price.

AMP Ohio's plants are expected to go on-line between 2011 and 2013.

However, before Ephrata can benefit from such an arrangement, state law must change. Currently, Pennsylvania does not allow municipalities to buy power as Ephrata proposes.

Senate Bill 168, sponsored by state Sen. Mike Brubaker, and now in Harrisburg is aimed at lifting that restriction.

E-mail: lalexander@lnpnews.com