Currently, three appraisers shall perform an appraisal of the sale, with the first appraiser appointed by the small water utility, the second appraiser appointed by the large water utility, and the third appraiser appointed by the other two appraisers. The act modifies this provision and provides that the Commission or the staff of the Commission upon delegation shall appoint the third appraiser.

The appraisers shall jointly prepare a fair and independent appraisal along with supporting rationale. The appraisers shall return only their final appraisal in writing and at the same time.

This act provides that the lesser of the purchase price or the appraised value, along with certain costs provided in the act, may, rather than shall, constitute the ratemaking rate base for the small water utility as acquired by the acquiring large water public utility.

A large water public utility's choice to comply with the provisions of the current law does not automatically ensure that the transaction is in the public interest. The Commission shall independently determine whether the acquisition is in the public interest, regardless of whether the matter has been put to a vote of the small water utility's ratepayers. If the acquisition is put to a vote, the ballot shall indicate that the Commission shall independently determine whether the acquisition is in the public interest regardless of the vote of the small water utility's ratepayers.

This act is similar to SB 1321 (2024) and a provision in SCS/HCS/HB 1746 (2024).

JULIA SHEVELEVA