Connecticut Senate Bill SB00222

Connecticut 2019 Regular Session

• Introduced: 1/23/19
• Refer: 1/23/19
• Refer: 3/11/19
• Report Pass: 3/14/19
• Refer: 3/20/19
• Report Pass: 3/26/19

Caption

An Act Concerning The Sale Of Municipal Water Supply And Wastewater Utility Assets.

Impact

This legislation impacts the operation of municipal water and wastewater systems significantly. By requiring municipalities to engage in asset valuation before any sale, it aims to prevent undervaluation and ensure fair financial transactions. Additionally, the bill stipulates that the Public Utilities Regulatory Authority must approve any such sale, which introduces a layer of regulatory oversight intended to protect public interest while also allowing for the transfer of utility management to private water companies when deemed appropriate.

Summary

SB00222 aims to regulate the sale of municipal water supply systems and wastewater utility assets by establishing clear procedures for municipalities wishing to negotiate their sale to water companies. The bill mandates that municipalities work with utility valuation experts to assess the value of their assets, ensuring that both the municipality and the water company agree upon a sale price backed by a fair market valuation. This act is set to take effect on October 1, 2019, marking a significant shift in the governance of municipal utilities.

Sentiment

The sentiment surrounding SB00222 seems to be cautious yet supportive among proponents who argue that this bill will facilitate necessary improvements and investments in municipal water systems. However, there are concerns among various advocacy groups about how such sales might affect service accessibility and rates for residents. The sentiment overall hints at a balancing act between effective utility management and community protection.

Contention

Notable points of contention include fears that transferring municipal water assets to private entities might lead to increased rates for consumers and a loss of local control over essential services. Critics are urging that the mechanisms in place may not sufficiently safeguard against potential misuse by private companies and could compromise the quality of water services provided to the public. Furthermore, the requirement for valuation by outside experts has sparked debates about the potential costs and implications for municipal budgets.