Apr. 14, 2016

HARRISBURG – Legislation sponsored by Rep. Robert Godshall (R-Montgomery) to fix deteriorating water and wastewater systems while protecting ratepayers was signed into law today by Gov. Tom Wolf.

“Currently, there are community-owned and private water and wastewater utilities whose system infrastructure is in dire need of repair or replacement, but system owners cannot afford to make the needed upgrades without sharp rate increases for customers,” said Godshall, who is chairman of the House Consumer Affairs Committee.

House Bill 1326 enables these utilities to be acquired by larger companies that are regulated by the Pennsylvania Public Utility Commission (PUC) and are capable of making the needed improvements and avoiding rate shock for consumers. Municipal utilities are not regulated by the PUC.

“Our present methods of valuating utility property discouraged these acquisitions because the purchasing utility might not be able to recover its investment. However, my bill establishes a process by which the fair market value can be determined for rate-making purposes. It offers accountability and predictability for utility customers.”

Under this new law, the PUC will be responsible for approving all public utility acquisitions, appraisals and post-acquisition rates and, in doing so, would establish a fair market value. The purchasing utility would make the needed improvements, ensuring a safe, reliable water or wastewater system for its customers.

Utility rates for consumers cannot change before the purchasing utility goes before the PUC for a rate adjustment. It is the PUC’s responsibility to ensure fairness for consumers, which may involve a phase-in of rates if necessary infrastructure improvements are extensive.

“Many communities across this Commonwealth have aging water and wastewater systems,” said Godshall. “This new law will help to ensure the integrity of those systems and a fair price to consumers.”

Representative Bob Godshall
53rd District
Pennsylvania House of Representatives

Media Contact: Donna Pinkham
717.260.6452
dpinkham@pahousegop.com
BobGodshall.com
Share