Regular Session 2021-2022 Senate Bill 0452 P.N. 0550

PRINTER'S NO. 550

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

452

Session of

2021

INTRODUCED BY KANE, FONTANA, COSTA, COLLETT, COMITTA, HUGHES AND

KEARNEY, APRIL 9, 2021

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,

APRIL 9, 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; and providing for water ratepayer bill of

rights.

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:

§ 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

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

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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.

* * *

Section 2. Title 66 is amended by adding a chapter to read:

CHAPTER 20

WATER RATEPAYER BILL OF RIGHTS

Sec.

2001. Definitions.

2002. Truth in water and wastewater privatization.

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2003. Truth in water source.

2004. Right to information.

2005. Right to access lands that were previously public.

2006. New customer rights.

§ 2001. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Water or wastewater utility." A water or wastewater public

utility subject to regulation under this title.

§ 2002. Truth in water and wastewater privatization.

(a) Annual report.--A water or wastewater utility shall

prepare an annual privatization report for ratepayers. The

annual privatization report shall be provided to each ratepayer

by bill insert and shall be posted on the water or wastewater

utility's publicly accessible Internet website.

(b) Contents.--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

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water or wastewater utility's other customers to the former

customers of the acquired systems.

(5) Any other information deemed necessary by the

commission.

annual privatization report with the commission. The commission

shall include all annual privatization reports in the annual

report as required under section 321 (relating to annual

reports).

§ 2003. Truth in water source.

(a) Annual notice.--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.

(b) Advanced notice.--Ratepayers must be notified nine

months prior to a change in the drinking water source.

change of a source of drinking water and notification of

ratepayers is not practical, the water or wastewater utility

shall notify the commission and ratepayers in writing within 14

days after the emergency change.

(d) Additional notice.--A water or wastewater utility shall

disclose, upon request of a ratepayer, if water is being sold

for bottling, fracking or other purposes as determined by the

commission.

§ 2004. Right to information.

(a) Information collection.--Water and wastewater utilities

shall be required to engage in mandatory information collection

on rate increases, arrearages, service disconnections and water

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lien sales. Information collection shall include geographic and

demographic information, as applicable.

(b) Report.--A water or wastewater utility shall provide,

upon request of a ratepayer, a report based on the information

collected under subsection (a).

§ 2005. Right to access lands that were previously public.

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.

§ 2006. New customer rights.

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.

Section 3. This act shall take effect in 90 days.

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