Pennsylvania House Bill HB946

Pennsylvania 2025-2026 Regular Session

• Introduced: 3/17/25
• Refer: 3/17/25

Caption

In rates and distribution systems, further providing for valuation of acquired water and wastewater systems.

Summary

HB946 amends Pennsylvania’s Public Utility Code provisions governing the valuation and approval of acquired water and wastewater systems. The bill keeps the existing appraisal-based valuation framework but adds new filing requirements for a public utility seeking to acquire a water or wastewater system, including submission of the appraisals, purchase price, ratemaking rate base, transaction and closing costs, a tariff reflecting the seller’s existing rates, any rate stabilization plan, and the results of a new ratepayer referendum. The bill also creates a mandatory ratepayer referendum for sales of water or wastewater systems with a fair market value of $1 million or more. Before the ballot is sent, ratepayers must receive advance notice explaining the maximum possible impact on rates, fees, or surcharges, and the ballot must ask whether they approve the sale. Ballots may be returned by mail or through a secure public website, and nonresponse is treated as a vote against the sale. The Public Utility Commission may not approve the acquisition unless a majority of ratepayers approve it, making ratepayer consent a condition of public-interest approval.

Impact

HB946 would change Title 66 by adding a direct voter-consent requirement for certain water and wastewater utility acquisitions and by expanding the documentation required in acquisition applications to the Pennsylvania Public Utility Commission. It would affect public utilities, selling utilities, ratepayers, the Office of Consumer Advocate, and the PUC by requiring referendum administration, notice, and ballot procedures, while also tying approval of acquisitions to majority ratepayer support. The bill is aimed at utility consolidation transactions and could make acquisitions more difficult or time-consuming, especially where ratepayers are concerned about future rate increases.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be framed as a consumer-protection and transparency bill. Its structure suggests support for giving affected customers a direct say in utility sales and for ensuring they are informed about potential rate impacts before a transaction proceeds. No formal vote history or transcript is available here to show broader legislative sentiment, but the bill’s design indicates a generally pro-ratepayer posture.

Contention

The main point of contention is likely the new referendum requirement, which shifts approval power from regulators and utility owners to ratepayers and could block transactions even when the PUC might otherwise find them acceptable. Utilities and potential acquirers may object to the added procedural burden, cost of notice and ballot administration, and the risk that nonresponse counts as disapproval. Supporters are likely to emphasize transparency, accountability, and protection against rate increases, while opponents may argue that the bill could discourage needed acquisitions or complicate efforts to improve struggling water and wastewater systems.