HB 946 — 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.

PRINTER'S NO.     1013

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                             HOUSE BILL
                             No. 946
                                                    Session of
                                                      2025

     INTRODUCED BY LAWRENCE, CIRESI, GILLEN, SHUSTERMAN AND
        ZIMMERMAN, MARCH 17, 2025

     REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 17, 2025


                                         AN ACT
 1   Amending Title 66 (Public Utilities) of the Pennsylvania
 2      Consolidated Statutes, in rates and distribution systems,
 3      further providing for valuation of acquired water and
 4      wastewater systems.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.         Section 1329(d)(1) and (3) of Title 66 of the
 8   Pennsylvania Consolidated Statutes are amended and the section
 9   is amended by adding a subsection to read:
10   § 1329.    Valuation of acquired water and wastewater systems.
11      * * *
12      (d)    Acquisitions by public utility.--The following apply:
13             (1)   If the acquiring public utility and selling utility
14      agree to use the process outlined in subsection (a), the
15      acquiring public utility shall include the following as an
16      attachment to its application for commission approval of the
17      acquisition filed pursuant to section 1102 (relating to
18      enumeration of acts requiring certificate):
19                   (i)    Copies of the two appraisals performed by the
 1        utility valuation experts under subsection (a).
 2              (ii)    The purchase price of the selling utility as
 3        agreed to by the acquiring public utility and selling
 4        utility.
 5              (iii)    The ratemaking rate base determined pursuant
 6        to subsection (c)(2).
 7              (iv)    The transaction and closing costs incurred by
 8        the acquiring public utility that will be included in its
 9        rate base.
10              (v)    A tariff containing a rate equal to the existing
11        rates of the selling utility at the time of the
12        acquisition and a rate stabilization plan, if applicable
13        to the acquisition.
14              (vi)    The results of the ratepayer referendum
15        conducted under subsection (d.1).
16        * * *
17        (3)     The commission shall issue an order approving or
18    disapproving the application for acquisition. Unless the
19    results of the ratepayer referendum under subsection (d.1)
20    show that a majority of ratepayers approve of the proposed
21    acquisition, the proposed acquisition shall be considered
22    contrary to the public interest and the commission shall not
23    approve the application for acquisition. If the commission
24    issues an order approving the application for acquisition,
25    the order shall include:
26              (i)    The ratemaking rate base of the selling utility,
27        as determined under subsection (c)(2).
28              (ii)    Additional conditions of approval as may be
29        required by the commission.
30        * * *

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 1      (d.1)   Ratepayer referendum.--A ratepayer referendum shall be
 2   conducted by a selling utility with a fair market value of
 3   $1,000,000 or more. The following shall apply:
 4          (1)   Each ratepayer account shall be asked "Do you
 5      approve the sale of (insert selling utility) to (insert
 6      acquiring public utility or entity) for the sum of (fair
 7      market value)?".
 8          (2)   At least 45 days before mailing a referendum ballot
 9      to each ratepayer account under paragraph (3), a selling
10      utility shall notify each ratepayer account of the referendum
11      through a mailing of no more than two pages via the United
12      States mail at the cost of the acquiring public utility. The
13      Office of Consumer Advocate shall develop the mailing. The
14      acquiring public utility shall place a full page
15      advertisement in a newspaper of general circulation in the
16      municipalities served by the selling utility and may
17      additionally notify ratepayers of the referendum via
18      electronic mail, a publicly accessible Internet website or
19      any other method of communication. Each notice under this
20      paragraph shall at least contain, in plain language, the
21      maximum possible impact on a ratepayer account's utility
22      rates, fees or surcharges as a result of the acquisition.
23          (3)   The selling utility shall mail each ratepayer
24      account, on a date determined by the selling utility, a
25      referendum ballot in a clearly marked envelope and provide
26      instructions on how a ratepayer may vote either via paper
27      ballot or a secure publicly accessible Internet website. A
28      failure to respond by a ratepayer account shall be deemed a
29      disapproval of the sale by the ratepayer account. Each ballot
30      under this paragraph shall contain, in plain language, the

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 1    maximum possible impact on a ratepayer account's utility
 2    rates, fees or surcharges as a result of the acquisition. A
 3    failure to include the maximum possible impact on a ratepayer
 4    account's utility rates, fees or surcharges on a ballot as
 5    required under this paragraph or the inclusion of inaccurate
 6    impact data on a ballot shall render the ballot insufficient
 7    for purposes of this subsection.
 8        (4)   The selling utility shall provide clear instructions
 9    as to the deadline by which ballots must be postmarked via
10    United States mail or received via a secure publicly
11    accessible Internet website, except that under no
12    circumstances shall less than 30 days elapse between the date
13    the ballots are mailed and the deadline.
14    * * *
15    Section 2.    This act shall take effect in 60 days.




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