The Public Water Protection and Fair Utility Transition Act establishes a moratorium on the privatization of public water and wastewater systems in Pennsylvania for a period of 12 months. This moratorium prohibits any authorization, approval, or execution of privatization agreements for municipality-owned, county-owned, or authority-owned systems, including finalizing existing agreements or submitting applications for acquisition approval. Exceptions to this moratorium include emergency transfers necessary for public health and safety and acquisitions ordered by the Pennsylvania Public Utility Commission. Any attempted privatization actions during this period will be deemed null and void.

Additionally, the Act establishes the Water Utility Reform Working Group, which will be convened by the Governor within 60 days of the Act's effective date. This group will consist of various stakeholders, including representatives from the Pennsylvania Public Utility Commission, environmental advocacy groups, and consumer advocacy organizations. The working group is tasked with developing a comprehensive policy proposal aimed at ensuring equitable rate structures, protecting public ownership, enhancing regulatory oversight, and improving transparency in utility transactions. The Act also repeals existing provisions related to the fair market valuation of acquired water and wastewater systems, which will no longer apply to contracts dated after the effective date of the Act.