Regular Session 2023-2024 House Bill 1862 P.N. 2878

PRIOR PRINTER'S NO. 2340

PRINTER'S NO. 2878

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, DALEY,

CIRESI, SHUSTERMAN, GREEN, CEPEDA-FREYTIZ, CERRATO,

D. WILLIAMS AND FRIEL, NOVEMBER 30, 2023

AS REPORTED FROM COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY

AND UTILITIES, HOUSE OF REPRESENTATIVES, AS AMENDED,

APRIL 9, 2024

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 AND FOR VALUATION OF ACQUIRED WATER AND WASTEWATER

SYSTEMS.

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.

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(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 OR SOLE SOURCE CONTRACT for an acquiring public

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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 OR SOLE SOURCE CONTRACT under paragraph

(1) in no less than two newspapers of general circulation

within the municipality where the municipal corporation is

established AND ON ALL MUNICIPAL CORPORATION SOCIAL MEDIA AND

PUBLICLY ACCESSIBLE INTERNET WEBSITES 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 OR SOLE SOURCE CONTRACT under paragraph (1), the

municipal corporation shall issue a report on the status of

the request for proposals OR SOLE SOURCE CONTRACT and provide

for a public comment period on the request for proposals OR

SOLE SOURCE CONTRACT .

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

selected request for proposals OR SOLE SOURCE CONTRACT under

paragraph (1), the municipal corporation shall provide

estimates of the rates charged to the customers DOCUMENTED

MEDIAN SYSTEM USAGE FOR THE PREVIOUS SIX YEARS CHARGED TO THE

PUBLIC UTILITY'S RESIDENTIAL, COMMERCIAL AND INDUSTRIAL

CLASSES by each public utility that submits an offer to the

request for proposals OR SOLE SOURCE CONTRACT under paragraph

(1) from an approved actuary. The municipal corporation shall

notify each resident of the municipality where the municipal

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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). OR SOLE SOURCE CONTRACT UNDER PARAGRAPH (1).

THE ACQUIRING PUBLIC UTILITY SHALL PROVIDE A LINK TO A RATE

CALCULATOR, HOSTED ON THE ACQUIRING PUBLIC UTILITY'S PUBLICLY

ACCESSIBLE INTERNET WEBSITE, WHICH ALLOWS A HOUSEHOLD TO

ENTER THE SPECIFICS OF ITS HOUSEHOLD USAGE IN ORDER TO

ESTIMATE FUTURE RATES AFTER THE ACQUISITION.

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

utility, person or corporation which has agreed to acquire

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 OR SOLE SOURCE CONTRACT

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

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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 HAS PROVIDED

ESTIMATES OF THE PROPOSED RATES TO BE 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.

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.

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

"approved actuary" means an individual , not employed by WHO IS

NOT EMPLOYED BY, AND HAS NOT PERFORMED WORK FOR, a municipal

corporation that is a seller of property under subsection (a) or

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an acquiring public utility IN THE PREVIOUS FIVE YEARS , who has

at least five years of actuarial experience and who is enrolled

as a member of the American Academy of Actuaries. THE ACTUARY

SHALL BE REQUIRED TO PUBLICLY DISCLOSE WHETHER THE ACTUARY HAS

EVER DONE WORK FOR THE ACQUIRING PUBLIC UTILITY OR MUNICIPAL

CORPORATION .

SECTION 2. SECTION 1329 OF TITLE 66 IS AMENDED BY ADDING A

SUBSECTION TO READ:

§ 1329. VALUATION OF ACQUIRED WATER AND WASTEWATER SYSTEMS.

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(F.1) APPLICABILITY.--THE PROCEDURES AND DEFINITIONS UNDER

SECTION 1327(A.1), (B), (C) AND (G) (RELATING TO ACQUISITION OF

WATER AND SEWER UTILITIES) AS THEY RELATE TO A MUNICIPAL

CORPORATION AND ACQUIRING PUBLIC UTILITY UNDER THAT SECTION

SHALL APPLY TO A SELLING UTILITY AND ACQUIRING PUBLIC UTILITY

UNDER THIS SECTION.

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Section 2 3. This act shall take effect in 60 days.

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