PRINTER'S NO. 620
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
97
Session of
2021
INTRODUCED BY LAWRENCE, CIRESI, DEASY, JAMES, B. MILLER, SAPPEY
AND ZIMMERMAN, FEBRUARY 26, 2021
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 26, 2021
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 proposed acquisition shall be considered
contrary to the public interest and 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.
* * *
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(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 account 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) At least 45 days before mailing a referendum ballot
to each ratepayer account under paragraph (3), a selling
utility shall notify each ratepayer account of the referendum
via United States mail and place a full page advertisement in
a newspaper of general 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. Each notice under this paragraph shall
contain, in plain language, the maximum possible impact on a
ratepayer account's utility rates, fees or surcharges as a
result of the acquisition.
(3) The selling utility shall mail each ratepayer
account, 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. A
failure to respond by a ratepayer account shall not be deemed
an approval or acquiescence to the sale by the ratepayer.
Each ballot under this paragraph shall contain, in plain
language, the maximum possible impact on a ratepayer
account's utility rates, fees or surcharges as a result of
the acquisition. A failure to include the maximum possible
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impact on a ratepayer account's utility rates, fees or
surcharges on a ballot as required under the paragraph or the
inclusion of inaccurate impact data on a ballot shall render
the ballot insufficient for purposes of this subsection.
(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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