When it has been determined that a municipality is distressed under Act 47, the privatization of water and sewer services is often proposed as a solution to municipal budget problems. However, this solution often leaves communities with higher water bills, worse service, job losses, and little control to fix these problems. Moreover, the sale of public water systems can also be concerning when the distressed municipality is serving other surrounding communities. Before deciding to privatize water services, the implications and potential impacts on the ratepayers of these communities should always be analyzed and taken into consideration.
 
For these reasons, I will be reintroducing former House Bill 1424 to provide additional oversight during this process to ensure utility customers in these communities are protected. My legislation will require a distressed municipality to obtain an analysis from the Public Utility Commission (PUC) regarding the sale of a public water system. If the PUC’s analysis determines that the sale of the water or wastewater system would result in a 25% rate increase in the monthly average residential customer’s bill, the Act 47 receiver would be prevented from proceeding with the sale.    
 
This legislation will protect the rights of ratepayers and ensure that utility customers are not burdened with unfair rate increases because of their municipality’s decision to privatize. Hardworking Pennsylvanians within distressed communities deserve to know how their monthly utility bills will be impacted by the sale of their public water system. With that in mind, I ask that you join me in co-sponsoring this legislation to provide necessary oversight on the privatization of water utilities in distressed communities.