West Virginia 2024 Regular Session

West Virginia House Bill HB5005

Introduced
1/23/24  

Caption

Relating to the authority of the Public Service Commission to order a capable proximate utility to operate a distressed or failing utility pursuant to a contract approved by the commission

Impact

The enactment of HB 5005 would fundamentally alter the regulatory landscape for public utilities in West Virginia. It expands the PSC's authority to decide when a utility is considered distressed or failing, potentially leading to mandated acquisitions or operational takeovers by other utilities. This is intended to ensure that residents have access to reliable water and wastewater services, effectively preventing service interruptions and addressing public health concerns associated with failing utilities. Furthermore, the bill emphasizes community hearings, requiring that evidentiary hearings take place near the affected customers, ensuring transparency and local input in decision-making processes.

Summary

House Bill 5005 seeks to amend existing legislation concerning the authority of the Public Service Commission (PSC) in West Virginia to intervene with distressed or failing water and wastewater utilities. The bill allows the PSC to mandate that a capable proximate utility take over the operations of a struggling utility through an approved contract. If the involved parties cannot reach an agreement, the PSC can set the terms of the contract, enhancing its regulatory powers significantly in situations regarding public utilities that are not meeting essential operational standards.

Sentiment

The sentiments surrounding HB 5005 are likely to be mixed. Supporters argue that this bill is crucial for ensuring that vital utility services are not allowed to deteriorate without proper oversight, thereby safeguarding public health and promoting effective utility management. On the other hand, there may be concerns raised regarding the overreach of regulatory authority, particularly among utilities that may view this as a threat to their operational autonomy and financial stability. The balance between regulatory intervention and local control will be a key point of discussion among stakeholders.

Contention

Notable points of contention may arise regarding the criteria for determining whether a utility is 'distressed' or 'failing', as well as the potential implications for existing contracts and agreements currently in place between utilities and their customers. Questions may also be raised about the adequacy of the PSC's authority in imposing contracts as well as the impact on competition among utilities. The prospect of mandated acquisitions or operational changes may provoke pushback from stakeholders fearing loss of business or regulatory favoritism, leading to ongoing debates as the bill moves through the legislative process.

Companion Bills

No companion bills found.

Previously Filed As

WV HB3179

Funding for failing public utilities

WV HB5202

Relating to permitting access to funding for public water utilities subject to the Public Service Commission’s jurisdiction

WV CACR30

relating to the public utilities commissioners.Providing that the public utilities commissioners are elected.

WV SB845

Relating to water utilities regulated by the Public Utility Commission.

WV HB2985

Relating to the Public Utility Commission.

WV AB2618

Public Utilities Commission: commissioners: employment.

WV AB1532

Public Utilities Commission.

WV HB07243

An Act Concerning Requirements For Appointments Of Utility Commissioners To The Public Utilities Regulatory Authority And Substantial Conflicts Of Interest Of Such Utility Commissioners.

WV SB0915

Public utilities: public service commission; competitive bidding for certain utility contracts; require. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 6bb.

WV H0865

Amends existing law to establish rules for ex parte communications to and from the Public Utilities Commission and to limit the amount that a commissioner or staff member may receive as a gift.

Similar Bills

US HB2292

Economic Opportunity for Distressed Communities Act

ND SB2033

The distressed ambulance service program; to provide for a legislative management report; and to provide a continuing appropriation.

ND SB2033

AN ACT to create and enact chapter 23-27.2 of the North Dakota Century Code, relating to the distressed ambulance service program; to provide for a legislative management report; and to provide a continuing appropriation.

IL HB3066

DISTRESSED FARMERS ACT