In rates and distribution systems, providing for limitation on water and wastewater rate increases.
Summary
HB2140 would add a new section to Pennsylvania’s Public Utility Code limiting how much the Pennsylvania Public Utility Commission (PUC) may approve residential water and wastewater rate increases. For residential customers, a utility’s proposed increase could not exceed the percentage change in the Consumer Price Index for the Northeast region over the most recent 12-month period before the filing date. The bill applies to rate increases approved under several existing ratemaking provisions, including sliding-scale rates, voluntary rate changes, alternative ratemaking, and settlement agreements in rate cases.
The bill also directs the PUC to treat water and wastewater service as essential and to prioritize affordability over recovery of capital costs that are not immediately necessary for health and safety. In addition, it would prohibit utilities from continuing to collect charges for an infrastructure upgrade or construction project after cost recovery is complete, and would require utilities to file tariffs removing those costs once recovered. If a utility does not do so, the PUC would be required to review the existing rate under its complaint and investigation authority.
Impact
HB2140 would materially constrain the PUC’s discretion in approving residential water and wastewater rates by imposing an inflation-based cap and by requiring affordability to be weighed ahead of certain capital cost recovery. It would affect water public utilities and wastewater public utilities, but only as to residential customers, and would likely require utilities to adjust rate filings, tariff structures, and post-recovery billing practices. The bill also reinforces the PUC’s oversight role by directing action when utilities fail to remove completed project costs from rates.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes, the available context suggests the measure is framed as a consumer-affordability bill rather than a utility-revenue bill. Its sponsors appear to be responding to concerns about rising household water and sewer bills and the continued collection of infrastructure-related charges after projects are paid off. No formal vote history or transcript is available here, so there is no documented opposition or support beyond the policy choices embedded in the proposal.
Contention
The main point of contention is likely to be the balance between affordability for residential customers and utilities’ ability to recover capital and infrastructure costs. The bill explicitly subordinates some capital recovery to affordability and health-and-safety needs, which could draw concern from water and wastewater utilities, infrastructure advocates, and regulators who may argue that strict CPI caps could limit needed investment or financial flexibility. Supporters would likely emphasize consumer protection, rate stability, and preventing over-collection after project costs are recovered.
In rates and distribution systems, further providing for valuation of acquired water and wastewater systems; and providing for water ratepayer bill of rights.
Providing for a moratorium on the privatization of public water and wastewater systems; establishing the Water Utility Reform Working Group; and making a repeal relating to valuation of acquired water and wastewater systems.
Providing for a moratorium on the privatization of public water and wastewater systems; establishing the Water Utility Reform Working Group; and making a repeal relating to valuation of acquired water and wastewater systems.