SB 432 — An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in rates and distribution systems, further providing for valuation of acquired water and wastewater systems; and providing for water ratepayer bill of rights.

Bill Text

• Printer's No. PN0413 View text Current pdf

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The bill amends Pennsylvania law to establish a water ratepayer bill of rights and modifies the process for valuating acquired water and wastewater systems.

• 66 Pa.C.S. § 1329

  (d.1) Ratepayer referendum.--A ratepayer referendum shall be conducted by a selling utility with a fair market value of $1,000,000 or more. The following shall apply: (1) Each ratepayer shall be asked "do you approve the sale of (insert selling utility) to (insert acquiring public utility or entity) for the sum of (fair market value)?". (2) A selling utility shall notify ratepayers of the referendum via United States mail and a full page advertisement in a newspaper of major circulation in the municipalities served by the selling utility and may additionally notify ratepayers of the referendum via electronic mail, a publicly accessible Internet website and any other method of communication. (3) The selling utility shall mail each ratepayer, on a date determined by the selling utility, a referendum ballot in a clearly marked envelope and provide instructions on how a ratepayer may vote either via paper ballot or a secure publicly accessible Internet website. (4) The selling utility shall provide clear instructions as to the deadline by which ballots must be postmarked via United States mail or received via a secure publicly accessible Internet website, except that under no circumstances shall less than 30 days elapse between the date the ballots are mailed and the deadline.

  Introduces a mandatory ratepayer referendum process for the sale of water and wastewater systems valued over $1 million.

• 66 Pa.C.S. § 1329(d)(1)

  The transaction and closing costs incurred by the acquiring public utility that will be included in its rate base.

  Requires the inclusion of transaction and closing costs in the rate base for water and wastewater system acquisitions.

• 66 Pa.C.S. § 1329(d)(3)

  If the results of the ratepayer referendum under subsection (d.1) show a majority of ratepayers disapprove of the proposed acquisition, the commission shall not approve the application for acquisition.

  Establishes that a disapproval from the ratepayer referendum prevents the approval of the acquisition application by the commission.

• CHAPTER 20 WATER RATEPAYER BILL OF RIGHTS Sec. 2001. Definitions. 2002. Truth in water and wastewater privatization. 2003. Truth in water source. 2004. Right to information. 2005. Right to access lands that were previously public. 2006. New customer rights.

  Creates a new chapter in Pennsylvania law outlining the Water Ratepayer Bill of Rights, establishing various rights and obligations for water and wastewater utilities.

• 66 Pa.C.S. § 2002

  The annual privatization report shall include all of the following: (1) A list of each water or wastewater system that the water or wastewater utility has purchased in the last 10 years which was previously owned by a municipality or municipal authority. (2) The annual amount billed to a typical residential customer by the municipality or municipal authority at the time of the acquisition. (3) The annual amount billed by the water or wastewater utility to a typical residential customer of the former municipality or municipal authority in the most recent calendar year. (4) The amount of subsidy, if any, being provided by the water or wastewater utility's other customers to the former customers of the acquired systems. (5) Any other information deemed necessary by the commission.

  Mandates water and wastewater utilities to prepare and provide an annual privatization report to ratepayers with specific information regarding acquisitions.

• 66 Pa.C.S. § 2003

  A water or wastewater utility shall notify ratepayers on an annual basis of the source of their drinking water. Notification shall be provided by bill insert and published on the water or wastewater utility's publicly accessible Internet website.

  Requires annual notification to ratepayers about the source of their drinking water.

• 66 Pa.C.S. § 2005

  After the acquisition of a water or wastewater system that was owned by a municipality or municipal authority, ratepayers shall have access to the lands that were previously publicly accessible.

  Guarantees ratepayers access to lands previously owned by municipal authorities after acquisition.

• 66 Pa.C.S. § 2006

  The rights provided under this chapter shall be provided to a new customer of a water or wastewater utility within 30 days of becoming a customer.

  Establishes a timeline for new customer rights to be communicated within 30 days of service initiation.

Action History

1. March 14, 2023

   Referred to Consumer Protection & Professional Licensure

Sponsors

• John I. Kane · Primary
• Wayne D. Fontana · Cosponsor
• Maria Collett · Cosponsor
• Sharif Street · Cosponsor
• Jay Costa · Cosponsor
• Carolyn T. Comitta · Cosponsor
• Katie J. Muth · Cosponsor
• Judith L. Schwank · Cosponsor
• Steven J. Santarsiero · Cosponsor
• Timothy P. Kearney · Cosponsor

Subjects