Relating to the authority of certain municipalities to provide water and sewer service to areas within the municipal boundaries without obtaining a certificate of public convenience and necessity.
The passage of HB3782 would simplify the process for smaller municipalities looking to offer water and sewer services. By eliminating the requirement to secure a CPCN, municipalities can operate more autonomously in servicing their local areas, potentially leading to increased efficiency and responsiveness to community needs. The bill aims to enhance local control over essential services, which advocates argue is crucial for smaller communities that may not have the same resources as larger urban areas.
House Bill 3782 seeks to amend the authority of certain municipalities regarding the provision of water and sewer services within their boundaries. The bill specifically allows municipalities with a population of less than 50,000 to provide these services without the need to obtain a certificate of public convenience and necessity (CPCN) from the state's utility commission. This amendment is particularly relevant to municipalities that contain areas certificated to investor-owned utilities, which typically have a significant number of connections within and outside the municipality.
However, the bill may also face opposition from existing public utilities that currently provide these services under a CPCN. Opponents might argue that the removal of this requirement could undermine the regulatory framework that ensures safe and reliable service delivery to residents. Furthermore, there could be concerns regarding the quality of service, as municipalities may not have the same level of oversight and expertise as established utilities. The requirement for municipalities to notify utilities and the utility commission prior to service provision aims to address some of these concerns, although critics may still view it as inadequate.
As of March 24, 2015, HB3782 was referred to the Urban Affairs committee, indicating that discussions about its implications and potential changes are ongoing.