In a series of bipartisan votes yesterday, a state House panel approved a package of four bills designed to tweak the process for selling public water and sewer systems to private companies.
- The tweaks would amend a state law known as Act 12, which paved the way for greater consolidation of local water and sewer systems.
- Advocates note that larger, private-sector owners are better equipped to take on the upgrades needed to ensure aging systems comply with state and federal environmental laws.
- But critics have complained that the sales process often lacks transparency and can lead to higher bills for customers.
What are the bills: They would introduce a series of changes to the sale process.
- One bill would add new requirements for notifying people when private companies seek to buy municipal water and sewer systems.
- Another would give state utility regulators more time to review private acquisitions.
- A state court overturned a sewer sale last year after it was already approved by the Pennsylvania Public Utility Commission, saying the commission did not adequately account for the sale’s impact on residents.
- A third is designed to protect customers from rate increases, while a fourth imposes a ceiling on the purchase price for the acquisition of public systems that are not in financial distress.
- Critics argue that private buyers offer high purchase prices to sway local officials, which then leads to rate hikes to cover the cost.
- “It is inevitable that these sales are going to happen. When they do, they need the proper safeguards in place to ensure consumer interests remain a central part of the equation,” state Rep. Rob Matzie, a Beaver County Democrat, said yesterday in a statement. He is majority chair of the House Consumer Protection, Technology and Utilities Committee, where the bills were approved.
- They passed with both Democratic and Republican votes, though sone Republicans voted against the measures.
What is Act 12: A 2016 state law that established a process for fairly valuing water and sewer systems on the assumption that consolidation would help operators bear the financial cost of system upgrades.
- Advocates contend the law is working well and the changes moving through the House are unnecessary.
- “We appreciate the intent behind the package of Act 12 amendments but fear it will simply make it more difficult for municipalities and discourage critical investment in water infrastructure in communities throughout the Commonwealth,” Alex Halper, top lobbyist for the Pennsylvania Chamber of Business and Industry, wrote this week in a memo opposing the bills.
