Pennsylvania House Bill HB1205

Pennsylvania 2023-2024 Regular Session

• Introduced: 5/19/23
• Refer: 5/19/23

Caption

In rates and distribution systems, further providing for valuation of acquired water and wastewater systems; and providing for water ratepayer bill of rights.

Impact

The enactment of HB 1205 would significantly influence state laws related to public utility management and customer rights. It mandates that water and wastewater utilities provide detailed annual reports discussing their activities, particularly about privatization and changes in the rates set for customers. This measure seeks to grant more control to ratepayers and ensure that they remain informed about any changes affecting their proprietary and financial relationships with the utilities. Additionally, the law will require utilities to maintain open lines of communication regarding their pricing structures and how they may change over time.

Summary

House Bill 1205 aims to amend Title 66 of the Pennsylvania Consolidated Statutes, focusing on improving the rights of water and wastewater ratepayers and enhancing transparency in the acquisition of public utilities. A key feature of the bill is the introduction of a 'Water Ratepayer Bill of Rights,' which establishes guidelines for how water utilities must communicate with customers, including annual notifications about the source of drinking water, as well as procedures for informing ratepayers about rate increases and changes in utility management. The bill also stipulates that if a water utility is acquired, the existing customers of the selling utility must be consulted through a ratepayer referendum to ensure their voices are heard before any acquisition proceeds.

Sentiment

Overall, the sentiment surrounding HB 1205 appears to be positive, with strong support from advocates for consumer rights and transparency in the utility sector. Proponents argue that the bill empowers consumers and protects them against potential abuses by private entities who may acquire public utilities. Conversely, some stakeholders express concerns about the implications of increased regulatory scrutiny on utility operations, which they fear could hinder necessary investments in infrastructure or lead to higher operational costs that may ultimately be passed on to consumers.

Contention

Notable points of contention include debates over the effectiveness of ratepayer referendums and the level of oversight required for water and wastewater utilities post-acquisition. Critics argue that while the bill promotes transparency, it may inadvertently create bureaucratic hurdles that could delay essential services and improvements. The need for transparency and the right to information is balanced against concerns regarding regulatory burdens, leading to multiple perspectives on the feasibility and execution of these proposed rights and procedures for ratepayers.