Regular Session 2023-2024 House Bill 1862 P.N. 2340

PRINTER'S NO. 2340

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1862

Session of

2023

INTRODUCED BY MATZIE, BOROWSKI, HANBIDGE, KAZEEM, KRUEGER,

O'MARA, SAPPEY, McNEILL, MADDEN, DONAHUE, T. DAVIS, PROBST,

HADDOCK, KINSEY, FIEDLER, DELLOSO, KRAJEWSKI, MAYES AND

DALEY, NOVEMBER 30, 2023

REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND

UTILITIES, NOVEMBER 30, 2023

AN ACT

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, in rates and distribution systems,

further providing for acquisition of water and sewer

utilities.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1327(b) and (c) of Title 66 of the

Pennsylvania Consolidated Statutes are amended and the section

is amended by adding subsections to read:

§ 1327. Acquisition of water and sewer utilities.

* * *

(a.1) Duties of selling municipal corporation.--If the

seller of property under subsection (a) is a municipal

corporation, the following shall apply:

(1) A municipal corporation shall issue a request for

proposals for an acquiring public utility. An agreement for

the acquisition of the property may not be signed and

executed within 180 days of the issuance of the request for

proposals under this paragraph.

(2) The municipal corporation shall advertise the

request for proposals under paragraph (1) in no less than two

newspapers of general circulation within the municipality

where the municipal corporation is established no later than

30 days after the issuance of the request for proposals and

no later than 60 days after the publication of the first

advertisement.

(3) At the next regularly scheduled meeting of the

municipal corporation and each subsequent regularly scheduled

meeting within 180 days of the issuance of the request for

proposals under paragraph (1), the municipal corporation

shall issue a report on the status of the request for

proposals and provide for a public comment period on the

request for proposals.

(4) No later than 30 days before a scheduled vote on the

selected request for proposals under paragraph (1), the

municipal corporation shall provide estimates of the rates

charged to the customers by each public utility that submits

an offer to the request for proposals under paragraph (1)

from an approved actuary. The municipal corporation shall

notify each resident of the municipality where the municipal

corporation is established of the estimates under this

paragraph and post the estimates on the social media account

operated by the municipal corporation within 30 days before a

scheduled vote on the selected request for proposals under

paragraph (1).

(b) Procedure.--The commission, upon application by a public

utility, person or corporation which has agreed to acquire

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property from another public utility, municipal corporation or

person, may approve an inclusion in rate base in accordance with

subsection (a) prior to the acquisition and prior to a

proceeding under this subchapter to determine just and

reasonable rates if:

(1) within 30 days from the date the applicant submits

an offer to the request for proposals under subsection (a.1),

if applicable , or the next billing cycle, whichever is

earlier, the applicant has provided notice of the proposed

acquisition and any proposed increase in rates to the

customers served by the property to be acquired, in such form

and manner as the commission, by regulation, shall require;

(2) within 30 days after providing the notice under

paragraph (1), or the next billing cycle, whichever is

earlier, the applicant has provided notice to its customers,

in such form and manner as the commission, by regulation,

shall require, if the proposed acquisition would increase

rates to the acquiring public utility's customers by an

amount in excess of 1% of the acquiring public utility's base

annual revenue and estimates of the rates charged by the

acquiring public utility to the customers from an approved

actuary;

(3) the applicant has provided notice of the application

to the Director of Trial Staff and the Consumer Advocate; and

(4) in addition to any other information required by the

commission, the application includes a full description of

the proposed acquisition and a plan for reasonable and

prudent investments to assure that the customers served by

the property to be acquired will receive adequate, efficient,

safe and reasonable service.

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application as it deems necessary.] Upon receipt of the

application, the commission shall schedule and conduct at least

two public hearings on the proposed acquisition within the

municipal boundaries of the selling public utility, municipal

corporation or person or the nearest appropriate venue as the

commission deems appropriate. The commission shall schedule the

first hearing no later than 45 days after receipt of the

application. The commission shall schedule the second hearing no

earlier than 30 days, but no later than 60 days, from the date

of the first hearing.

* * *

(g) Definitions.--As used in this section, the term

"approved actuary" means an individual , not employed by a

municipal corporation that is a seller of property under

subsection (a) or an acquiring public utility, who has at least

five years of actuarial experience and who is enrolled as a

member of the American Academy of Actuaries.

Section 2. This act shall take effect in 60 days.

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