HB 2140 — An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in rates and distribution systems, providing for limitation on water and wastewater rate increases.

PRINTER'S NO.   2765

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 2140
                                                 Session of
                                                   2026

     INTRODUCED BY GILLEN, PROBST, WATRO, PUGH, KUZMA AND ZIMMERMAN,
        JANUARY 13, 2026

     REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
        UTILITIES, JANUARY 14, 2026


                                      AN ACT
 1   Amending Title 66 (Public Utilities) of the Pennsylvania
 2      Consolidated Statutes, in rates and distribution systems,
 3      providing for limitation on water and wastewater rate
 4      increases.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.     Title 66 of the Pennsylvania Consolidated
 8   Statutes is amended by adding a section to read:
 9   § 1331.    Limitation on water and wastewater rate increases.
10      (a)    Limitation on residential rate increases.--
11             (1)   The commission may not approve a rate increase for a
12      residential customer of a water public utility or wastewater
13      public utility under section 1307 (relating to sliding scale
14      of rates; adjustments), 1308 (relating to voluntary changes
15      in rates) or 1330 (relating to alternative ratemaking for
16      utilities) or a settlement agreement in a rate proceeding if
17      the percent increase in the rates charged to residential
18      customers exceeds the percent increase in the Consumer Price
 1      Index, calculated using available data for the most recent
 2      12-month period for the northeast region immediately
 3      preceding the filing date of the proposed rate change.
 4            (2)   Paragraph (1) shall apply only to the rates charged
 5      to residential customers.
 6      (b)   Essential water and wastewater services.--In reviewing a
 7   rate increase affecting residential customers of a water public
 8   utility or wastewater public utility, the commission shall
 9   prioritize affordability of water and wastewater service as an
10   essential service over recovery of capital costs that are not
11   necessary for the immediate maintenance of health and safety.
12   The commission shall reject a rate increase that fails to meet
13   the standard specified under this subsection.
14      (c)   Postrecovery rates.--
15            (1)   A rate increase or charge approved to recover costs
16      of an infrastructure upgrade or construction project may not
17      be collected after the public utility completes cost recovery
18      for the infrastructure upgrade or construction project.
19            (2)   After the public utility completes cost recovery
20      under paragraph (1), the public utility shall file a tariff
21      that removes the costs incurred for the completed
22      infrastructure upgrade or construction project from the rates
23      charged.
24            (3)   If the public utility fails to file a tariff under
25      paragraph (2), the commission shall proceed under section
26      1309 (relating to rates fixed on complaint; investigation of
27      costs of production) to review the existing rate.
28      (d)   Definitions.--As used in this section, the following
29   words and phrases shall have the meanings given to them in this
30   subsection unless the context clearly indicates otherwise:

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1      "Consumer Price Index."   The Consumer Price Index published
2   by the United States Department of Labor, Bureau of Labor
3   Statistics.
4      "Northeast region."   The northeast region used by the United
5   States Department of Labor, Bureau of Labor Statistics, for
6   publication of the Consumer Price Index.
7      Section 2.   This act shall take effect in 60 days.




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