62 Pa. Stat. § 307
For the purpose of providing utility services for State institutions, the department may execute such agreements and contracts as it may deem necessary therefor with any political subdivision or any authority to provide utility services, and for defraying the Commonwealth's share of the expenses and charges to be incurred in establishing and contracting with an authority or political subdivision for the purpose of acquiring, holding, constructing, improving, maintaining, and operating sewage systems, water supply systems, electric power, gas, steam, or other utility systems.
Payment of the costs of such expenses, charges and services shall be made from appropriations to the department for such purposes, in accordance with the agreement made by the department.
62 P.S. § 307