The Pennsylvania legislature is facing pressure to address Act 12, a 2016 law that has resulted in higher utility bills for communities in the state. The law allows investor-owned utilities to include the costs of purchasing public water and wastewater systems in rate increase requests, leading to bill increases of up to 166% for customers. Lawmakers have proposed repealing the law or studying it further, but a solution has not yet been reached. The legislation has been a source of frustration for customers and concerns from the state’s consumer advocate.
In response to these concerns, bills have been advanced in the state House to put guardrails on private acquisitions of public systems, but the limited number of session days and upcoming election season have hindered progress. The Public Utility Commission, which regulates core services like water and gas, has approved multiple private acquisitions since Act 12’s passage.
Critics of the law argue that it artificially inflates the sale price of municipal systems, benefiting shareholders of investor-owned companies at the expense of ratepayers. Various proposals have been put forth by lawmakers to address customer frustrations, including adding limitations to the law, spreading costs over time, and capping the sale price. However, stakeholders are divided on the best approach.
Despite ongoing discussions and efforts by the utility commission to improve the acquisition process, legislative change is being sought by advocates. State leaders believe that reforms are necessary to protect consumers and ensure fair treatment in the sale of public water and wastewater systems.
Source
Photo credit www.spotlightpa.org