SB 338 — 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.

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
 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; and providing for water ratepayer bill of
 5      rights.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.     Section 1329(d)(3) of Title 66 of the
 9   Pennsylvania Consolidated Statutes is amended, subsection (d)(1)
10   is amended by adding a subparagraph and the section is amended
11   by adding a subsection to read:
12   § 1329.    Valuation of acquired water and wastewater systems.
13      * * *
14      (d)    Acquisitions by public utility.--The following apply:
15             (1)   If the acquiring public utility and selling utility
16      agree to use the process outlined in subsection (a), the
17      acquiring public utility shall include the following as an
18      attachment to its application for commission approval of the
19      acquisition filed pursuant to section 1102 (relating to
 1      enumeration of acts requiring certificate):
 2                * * *
 3                (vi)    The results of the ratepayer referendum
 4          conducted under subsection (d.1).
 5          * * *
 6          (3)     The commission shall issue an order approving or
 7      disapproving the application for acquisition. If the results
 8      of the ratepayer referendum under subsection (d.1) show a
 9      majority of ratepayers disapprove of the proposed
10      acquisition, the commission shall not approve the application
11      for acquisition. If the commission issues an order approving
12      the application for acquisition, the order shall include:
13                (i)    The ratemaking rate base of the selling utility,
14          as determined under subsection (c)(2).
15                (ii)    Additional conditions of approval as may be
16          required by the commission.
17          * * *
18      (d.1)   Ratepayer referendum.--A ratepayer referendum shall be
19   conducted by a selling utility with a fair market value of
20   $1,000,000 or more. The following shall apply:
21          (1)   Each ratepayer shall be asked "do you approve the
22      sale of (insert selling utility) to (insert acquiring public
23      utility or entity) for the sum of (fair market value)?".
24          (2)   A selling utility shall notify ratepayers of the
25      referendum via United States mail and a full-page
26      advertisement in a newspaper of major circulation in the
27      municipalities served by the selling utility and may
28      additionally notify ratepayers of the referendum via
29      electronic mail, a publicly accessible Internet website and
30      any other method of communication.

20250SB0338PN0274                     - 2 -
 1             (3)   The selling utility shall mail each ratepayer, on a
 2      date determined by the selling utility, a referendum ballot
 3      in a clearly marked envelope and provide instructions on how
 4      a ratepayer may vote either via paper ballot or a secure
 5      publicly accessible Internet website.
 6             (4)   The selling utility shall provide clear instructions
 7      as to the deadline by which ballots must be postmarked via
 8      United States mail or received via a secure publicly
 9      accessible Internet website, except that under no
10      circumstances shall less than 30 days elapse between the date
11      the ballots are mailed and the deadline.
12      * * *
13      Section 2.     Title 66 is amended by adding a chapter to read:
14                                   CHAPTER 20
15                        WATER RATEPAYER BILL OF RIGHTS
16   Sec.
17   2001.    Definitions.
18   2002.    Truth in water and wastewater privatization.
19   2003.    Truth in water source.
20   2004.    Right to information.
21   2005.    Right to access lands that were previously public.
22   2006.    New customer rights.
23   § 2001.    Definitions.
24      The following words and phrases when used in this chapter
25   shall have the meanings given to them in this section unless the
26   context clearly indicates otherwise:
27      "Water or wastewater utility."         A water or wastewater public
28   utility subject to regulation under this title.
29   § 2002.    Truth in water and wastewater privatization.
30      (a)    Annual report.--A water or wastewater utility shall

20250SB0338PN0274                      - 3 -
 1   prepare an annual privatization report for ratepayers. The
 2   annual privatization report shall be provided to each ratepayer
 3   by bill insert and shall be posted on the water or wastewater
 4   utility's publicly accessible Internet website.
 5      (b)    Contents.--The annual privatization report shall include
 6   all of the following:
 7             (1)   A list of each water or wastewater system that the
 8      water or wastewater utility has purchased in the last 10
 9      years which was previously owned by a municipality or
10      municipal authority.
11             (2)   The annual amount billed to a typical residential
12      customer by the municipality or municipal authority at the
13      time of the acquisition.
14             (3)   The annual amount billed by the water or wastewater
15      utility to a typical residential customer of the former
16      municipality or municipal authority in the most recent
17      calendar year.
18             (4)   The amount of subsidy, if any, being provided by the
19      water or wastewater utility's other customers to the former
20      customers of the acquired systems.
21             (5)   Any other information deemed necessary by the
22      commission.
23      (c)    Filing.--A water or wastewater utility shall file the
24   annual privatization report with the commission. The commission
25   shall include all annual privatization reports in the annual
26   report as required under section 321 (relating to annual
27   reports).
28   § 2003.    Truth in water source.
29      (a)    Annual notice.--A water or wastewater utility shall
30   notify ratepayers on an annual basis of the source of the

20250SB0338PN0274                     - 4 -
 1   ratepayers' drinking water. Notification shall be provided by
 2   bill insert and published on the water or wastewater utility's
 3   publicly accessible Internet website.
 4      (b)    Advanced notice.--Ratepayers must be notified nine
 5   months prior to a change in the drinking water source.
 6      (c)    Public emergency.--If a public emergency requires the
 7   change of a source of drinking water and notification of
 8   ratepayers is not practical, the water or wastewater utility
 9   shall notify the commission and ratepayers in writing within 14
10   days after the emergency change.
11      (d)    Additional notice.--A water or wastewater utility shall
12   disclose, upon request of a ratepayer, if water is being sold
13   for bottling, fracking or other purposes as determined by the
14   commission.
15   § 2004.   Right to information.
16      (a)    Information collection.--Water and wastewater utilities
17   shall be required to engage in mandatory information collection
18   on rate increases, arrearages, service disconnections and water
19   lien sales. Information collection shall include geographic and
20   demographic information, as applicable.
21      (b)    Report.--A water or wastewater utility shall provide,
22   upon request of a ratepayer, a report based on the information
23   collected under subsection (a).
24   § 2005.   Right to access lands that were previously public.
25      After the acquisition of a water or wastewater system that
26   was owned by a municipality or municipal authority, ratepayers
27   shall have access to the lands that were previously publicly
28   accessible.
29   § 2006.   New customer rights.
30      The rights provided under this chapter shall be provided to a

20250SB0338PN0274                     - 5 -
1   new customer of a water or wastewater utility within 30 days of
2   becoming a customer.
3      Section 3.   This act shall take effect in 90 days.




20250SB0338PN0274                 - 6 -