The proposed General Assembly Raised Bill No. 6777 seeks to improve water utility systems by establishing a framework for water quality and treatment surcharges. It introduces new definitions such as "Authority," "Eligible project," and "Perfluoroalkyl and polyfluoroalkyl substances" (PFAS) to align with existing laws. The bill empowers the Public Utilities Regulatory Authority (PURA) to permit water companies to recover costs for eligible projects that comply with unforeseen state or federal drinking water regulations, provided these projects were not previously included in the water company's rate base. The bill also outlines the criteria for these projects, emphasizing adherence to drinking water quality standards and necessary infrastructure improvements.

Additionally, the bill details the implementation of a water quality and treatment surcharge, which can be added to customer bills alongside existing rates. Water companies are required to submit a ten-year infrastructure project assessment report for PURA's approval, with a decision mandated within 180 days. The surcharge, based on actual project costs, cannot exceed 15% of the company's annual retail water revenues and must be reset to zero upon new base rate approvals. The bill also includes provisions for annual reconciliation reports, customer notifications, and clear itemization of surcharges on bills, with the act set to take effect on July 1, 2025.