PRINTER'S NO. 2081
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1351
Session of
2020
INTRODUCED BY KILLION, OCTOBER 16, 2020
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
OCTOBER 16, 2020
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1329(d)(1) and (3) of Title 66 of the
Pennsylvania Consolidated Statutes are amended and the section
is amended by adding a subsection to read:
ยง 1329. Valuation of acquired water and wastewater systems.
* * *
(d) Acquisitions by public utility.--The following apply:
(1) If the acquiring public utility and selling utility
agree to use the process outlined in subsection (a), the
acquiring public utility shall include the following as an
attachment to its application for commission approval of the
acquisition filed pursuant to section 1102 (relating to
enumeration of acts requiring certificate):
(i) Copies of the two appraisals performed by the
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utility valuation experts under subsection (a).
(ii) The purchase price of the selling utility as
agreed to by the acquiring public utility and selling
utility.
(iii) The ratemaking rate base determined pursuant
to subsection (c)(2).
(iv) The transaction and closing costs incurred by
the acquiring public utility that will be included in its
rate base.
(v) A tariff containing a rate equal to the existing
rates of the selling utility at the time of the
acquisition and a rate stabilization plan, if applicable
to the acquisition.
(vi) The results of the ratepayer referendum
conducted under subsection (d.1).
* * *
(3) The commission shall issue an order approving or
disapproving the application for acquisition. 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. If the commission issues an order approving
the application for acquisition, the order shall include:
(i) The ratemaking rate base of the selling utility,
as determined under subsection (c)(2).
(ii) Additional conditions of approval as may be
required by the commission.
* * *
(d.1) Ratepayer referendum.--A ratepayer referendum shall be
conducted by a selling utility with a fair market value of
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$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.
* * *
Section 2. This act shall take effect in 60 days.
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