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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | June 7, 2023 04:06 PM |
|---|---|
| From: | Representative Carol Kazeem |
| To: | All House members |
| Subject: | PUC Oversight during the Sale of Public Water Systems owned by Destressed Municipalities |
| When a municipality has been determined to be a distressed municipality under Act 47, the privatization of water and sewer services is often proposed as a solution to municipal budget problems. However, there are larger implications that need to be examined before this drastic step is taken. The proposed sale is additionally concerning when the distressed municipality is serving surrounding communities. Unfortunately, this solution often leaves communities with higher water bills, worse service, job losses, and little control to fix these problems. Recently, one such scenario is being played out with the City of Chester, a distressed municipality, and the Chester Water Authority. To add additional oversight into the sale process, I will be introducing legislation to require an Act 47 receiver to obtain an analysis from the Public Utility Commission (PUC) regarding the sale. If the PUC determines that the sale of the public water or wastewater system would result in a 25% rate increase in the monthly average residential customer’s bill, the receiver would be prevented from proceeding with the sale. We need to provide protections for ratepayers and customers in a distressed municipality. These hardworking Pennsylvanians deserve to know how their monthly bills will be impacted as a distressed community navigates their plan to overcome financial distress. Please join me in providing oversight in privatization of water utilities in a distressed community by cosponsoring this legislation. |
Introduced as HB1424