LCO No. 3230 1 of 2
General Assembly Proposed Bill No. 222
January Session, 2019
LCO No. 3230
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
SEN. FORMICA, 20th Dist.
AN ACT CONCERNING THE SALE OF MUNICIPAL WATER SUPPLY
AND WASTEWATER SYSTEM ASSETS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
That the general statutes be amended to establish a process for a 1
municipality's sale of its water supply system or municipal wastewater 2
system to a water company that requires: 3
(1) A municipality that owns such a system to negotiate with a 4
water company for the sale of such system and determine a sale price; 5
(2) Such municipality and water company to determine the system's 6
fair market value utilizing a licensed engineer and a utility valuation 7
expert and submit an application for approval to the Public Utilities 8
Regulatory Authority; and 9
(3) If the authority approves the application, the authority to 10
determine the ratemaking rate base as the lesser of the negotiated sale 11
price or the system's average fair market value. 12 Proposed Bill No. 222
LCO No. 3230 2 of 2
Statement of Purpose:
To establish a process for the sale of a municipal water supply system
or municipal wastewater system.