PUC considering new requirements for municipal authority sales
KAYLEE LINDENMUTH / SHENANDOAH SENTINEL - The Municipal Authority of the Borough of Shenandoah Offices.
HARRISBURG – A sale like that of Shenandoah’s water authority could have more regulatory requirements to cross the finish line soon.
The Pennsylvania Public Utilities Commission (PUC) unanimously approved a tentative order that would make four changes to the guidelines for the sale of a municipal-owned water or sewer system to a private company.
If formally approved, the PUC would require two public hearings before an asset purchase agreement is signed and would require a rate impact notice.
The PUC says that both parties to the sale would be required to sign an affidavit saying that they are aware of the potential rate impacts of the sale, and that the municipality “has publicly communicated such implications on rates through notices issued to its existing customers.”
The remaining proposed changes also would change the way the PUC views valuations.
“I believe the time is right for the Commission to consider revisions that are within the Commission’s purview,” said PUC Chairman Stephen DeFrank. “I believe the proposed updates…will improve the general public’s awareness of applications, establish more consistent and expected weighing of valuation methods, and assist the Commission in its ultimate review and analysis of [such sales.]”
Commissioner Kathryn L. Zerfuss said, “The Commission is taking concerns raised by all parties related to water acquisitions very seriously. The revisions proposed today are a positive step forward as the Commission must carefully review each of these cases and determine whether the applicable law has been met.”
Public comments are being accepted, as are recommendations for consideration.
Interested parties may submit written comments within 30 days of publication of the Tentative Supplemental Implementation Order in the Pennsylvania Bulletin. Following the close of this comment period, interested parties have an opportunity to file written reply comments within 15 days. Both comments and reply comments should reference Docket No. M-2016-2543193.
Interested parties submitting comments and/or reply comments are encouraged to use the Commission’s electronic filing system. An eFiling account may be opened and used through the Commission’s website. Comments containing confidential information should be emailed to Commission Secretary Rosemary Chiavetta at [email protected] rather than eFiled.
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