PRINTER'S NO. 274 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL No.338 Session of 2025 INTRODUCED BY KANE, STREET, SCHWANK, COMITTA, KEARNEY, COLLETT, COSTA, HAYWOOD, SANTARSIERO AND KIM, FEBRUARY 26, 2025 REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, FEBRUARY 26, 2025 AN ACT Amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in rates and distribution systems, further providing for valuation of acquired water and wastewater systems; and providing for water ratepayer bill of rights. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 1329(d)(3) of Title 66 of the Pennsylvania Consolidated Statutes is amended, subsection (d)(1) is amended by adding a subparagraph and the section is amended by adding a subsection to read: § 1329. Valuation of acquired water and wastewater systems. * * * (d) Acquisitions by public utility.--The following apply: (1) If the acquiring public utility and selling utility agree to use the process outlined in subsection (a), the acquiring public utility shall include the following as an attachment to its application for commission approval of the acquisition filed pursuant to section 1102 (relating to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 enumeration of acts requiring certificate): * * * (vi) The results of the ratepayer referendum conducted under subsection (d.1). * * * (3) The commission shall issue an order approving or disapproving the application for acquisition. If the results of the ratepayer referendum under subsection (d.1) show a majority of ratepayers disapprove of the proposed acquisition, the commission shall not approve the application for acquisition. If the commission issues an order approving the application for acquisition, the order shall include: (i) The ratemaking rate base of the selling utility, as determined under subsection (c)(2). (ii) Additional conditions of approval as may be required by the commission. * * * (d.1) Ratepayer referendum.--A ratepayer referendum shall be conducted by a selling utility with a fair market value of $1,000,000 or more. The following shall apply: (1) Each ratepayer shall be asked "do you approve the sale of (insert selling utility) to (insert acquiring public utility or entity) for the sum of (fair market value)?". (2) A selling utility shall notify ratepayers of the referendum via United States mail and a full-page advertisement in a newspaper of major circulation in the municipalities served by the selling utility and may additionally notify ratepayers of the referendum via electronic mail, a publicly accessible Internet website and any other method of communication. 20250SB0338PN0274 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (3) The selling utility shall mail each ratepayer, on a date determined by the selling utility, a referendum ballot in a clearly marked envelope and provide instructions on how a ratepayer may vote either via paper ballot or a secure publicly accessible Internet website. (4) The selling utility shall provide clear instructions as to the deadline by which ballots must be postmarked via United States mail or received via a secure publicly accessible Internet website, except that under no circumstances shall less than 30 days elapse between the date the ballots are mailed and the deadline. * * * Section 2. Title 66 is amended by adding a chapter to read: CHAPTER 20 WATER RATEPAYER BILL OF RIGHTS Sec. 2001. Definitions. 2002. Truth in water and wastewater privatization. 2003. Truth in water source. 2004. Right to information. 2005. Right to access lands that were previously public. 2006. New customer rights. § 2001. Definitions. The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Water or wastewater utility." A water or wastewater public utility subject to regulation under this title. § 2002. Truth in water and wastewater privatization. (a) Annual report.--A water or wastewater utility shall 20250SB0338PN0274 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 prepare an annual privatization report for ratepayers. The annual privatization report shall be provided to each ratepayer by bill insert and shall be posted on the water or wastewater utility's publicly accessible Internet website. (b) Contents.--The annual privatization report shall include all of the following: (1) A list of each water or wastewater system that the water or wastewater utility has purchased in the last 10 years which was previously owned by a municipality or municipal authority. (2) The annual amount billed to a typical residential customer by the municipality or municipal authority at the time of the acquisition. (3) The annual amount billed by the water or wastewater utility to a typical residential customer of the former municipality or municipal authority in the most recent calendar year. (4) The amount of subsidy, if any, being provided by the water or wastewater utility's other customers to the former customers of the acquired systems. (5) Any other information deemed necessary by the commission. (c) Filing.--A water or wastewater utility shall file the annual privatization report with the commission. The commission shall include all annual privatization reports in the annual report as required under section 321 (relating to annual reports). § 2003. Truth in water source. (a) Annual notice.--A water or wastewater utility shall notify ratepayers on an annual basis of the source of the 20250SB0338PN0274 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ratepayers' drinking water. Notification shall be provided by bill insert and published on the water or wastewater utility's publicly accessible Internet website. (b) Advanced notice.--Ratepayers must be notified nine months prior to a change in the drinking water source. (c) Public emergency.--If a public emergency requires the change of a source of drinking water and notification of ratepayers is not practical, the water or wastewater utility shall notify the commission and ratepayers in writing within 14 days after the emergency change. (d) Additional notice.--A water or wastewater utility shall disclose, upon request of a ratepayer, if water is being sold for bottling, fracking or other purposes as determined by the commission. § 2004. Right to information. (a) Information collection.--Water and wastewater utilities shall be required to engage in mandatory information collection on rate increases, arrearages, service disconnections and water lien sales. Information collection shall include geographic and demographic information, as applicable. (b) Report.--A water or wastewater utility shall provide, upon request of a ratepayer, a report based on the information collected under subsection (a). § 2005. Right to access lands that were previously public. After the acquisition of a water or wastewater system that was owned by a municipality or municipal authority, ratepayers shall have access to the lands that were previously publicly accessible. § 2006. New customer rights. The rights provided under this chapter shall be provided to a 20250SB0338PN0274 - 5 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 new customer of a water or wastewater utility within 30 days of becoming a customer. Section 3. This act shall take effect in 90 days. 20250SB0338PN0274 - 6 - 1 2 3