COLUMBIA CITY, Ind. (AP) – Municipal electric companies around Indiana are preparing to fight a push in the state Legislature that would block them from adding territory as cities or towns annex new areas.

A proposal being developed by Republican Sen. Mike Crider of Greenfield would prohibit the state's 72 municipal electric companies from taking territory from rural electric cooperatives and investor-owned utilities or change the formula for compensating the existing electric provider.

Columbia City Mayor Ryan Daniel tells The Journal Gazette that the municipal electric companies only have 7 percent of the state's customers and that the legislation would create a monopolistic situation.

Indiana Energy Association president Mark Maassel says investor-owned utilities such as Duke Energy and REMCs aren't allowed to take municipal territory, so they're looking for an even playing field.