Dear Colleagues –
 
In the near future, I will reintroduce a four bill package dealing with Act 12 of 2016.  This law governs a process utilized when a municipal water/sewer system is sold. 
 
Back in the 2015-2016 session, the cosponsorship memo for HB1326, which became Act 12, promoted the proposal with the following language:
 
Currently, there are community owned and private water and wastewater utilities whose system infrastructure is urgently in need of repair or replacement however, the system owners cannot afford to make these needed upgrades without significant investment resulting in increased costs to its customers. For many of these systems, sale to a larger water or wastewater company is a welcome opportunity as it enables system improvements and ensures the continued provision of safe, reliable service to customers at reasonable rates. However, current law relating to valuation of utility property discourages these acquisitions because the purchasing utility may not be able to recover its investment.

While it is true that there are a number of municipal water and wastewater utilities that need expensive upgrades, the fact of the matter is that Act 12 does not reduce or eliminate the need for ratepayers to pay for these costly repairs.  In fact, as a result of Act 12, in addition to paying for these repairs, ratepayers also have to pay for a new and substantial cost – the substantially higher purchase price paid by the new private owner for the formerly municipal water or wastewater utility.  Ratepayers have no ability to speak directly into the decision to sell a municipal water or sewer system.
 
These four bills deal with Act 12 in different manners, but all seek greater transparency and disclosure for those most affected – utility ratepayers.
 

Statutes/Laws affected:
Printer's No. 1013: 66-1329(d)(1), 66-3)