Public utilities; private sewer or wastewater systems, authorized to come under the jurisdiction of the Public Service Commission
Summary
HB140 would allow certain privately owned sewer and wastewater systems that are affiliated with an existing Public Service Commission-regulated private utility to elect into PSC jurisdiction. The bill defines key terms such as “affiliated system,” “common ownership or control,” and “regulated sewer or wastewater entity,” and sets out a procedure for filing notice with the PSC to make the election. Once an affiliated system opts in, the PSC would certify and regulate it under existing utility law, using standard rate-making factors when valuing property and setting rates.
The bill also requires an electing affiliated system to keep charging its existing rates until PSC-approved rates take effect. In setting future rates, the PSC must consider the capital expenditures and operating expenses of the affiliated and regulated systems together as a single entity, creating one rate structure and rate amount for all customers unless the commission finds that pre-existing obligations or unique local circumstances require adjustments. The bill further subjects electing systems to PSC wastewater management fees and makes the act effective October 1, 2025.
Impact
HB140 would expand the scope of PSC oversight to include additional privately owned sewer and wastewater systems that are under common ownership or control with already regulated systems, but only if those systems choose to opt in and are not barred by a local constitutional amendment. It would affect rate regulation, valuation of utility property, and fee obligations for those systems, while preserving existing authority of the Jefferson County Board of Health and not overriding local constitutional provisions where they apply. The bill is supplemental to existing law and would control only where it directly conflicts with current statutes or rules.
Sentiment
The available voting history shows strong support for the bill, with unanimous or near-unanimous House approval and no recorded opposition in the votes provided. There are no committee transcripts included, so there is no documented floor or committee debate to indicate significant resistance. Overall, the bill appears to have been viewed as a technical utility-regulation measure with broad bipartisan acceptance.
Contention
The main potential points of contention are the bill’s expansion of PSC authority over privately owned wastewater systems and the requirement to combine affiliated and regulated systems’ costs into a single rate structure. That approach could affect how rates are allocated among customers in different service areas, especially where pre-existing obligations or local conditions differ. The bill also expressly limits its reach in counties with local constitutional amendments and preserves Jefferson County Board of Health authority, suggesting sensitivity to local control and existing regulatory arrangements.