HB727 Alabama 2012 Session

Summary

Primary Sponsor

Mary Sue McClurkinCity Council

Republican

Co-Sponsor

Jim Carns

Session

Regular Session 2012

Title

Utilities, expand the definition of certain wastewater service provider for regulation by the Public Service Commission, Sec. 37-4-2A added; Secs. 22-25B-6, 37-4-1 am'd

Summary

HB727 would expand the Alabama Public Service Commission's authority to regulate wastewater service providers and allow utilities exempt from regulation to opt into PSC oversight.

What This Bill Does

The bill expands the definition of a utility to include wastewater collection and treatment systems. Utilities that are currently exempt from PSC regulation could choose to waive that exemption in writing and come under PSC regulation. It creates a framework for regulating wastewater management entities, including requirements for economic viability, financial assurances, and rate approval by the PSC, with enforcement provisions for noncompliance. It also allows wastewater regulations to differ from other utility rules and clarifies penalties and oversight processes.

Who It Affects

• Wastewater management entities (cluster and community wastewater systems) would be regulated by the PSC, including requirements for economic viability, financial assurances, rate approval, and potential penalties for noncompliance.
• Utilities that are currently exempt from PSC regulation would have the option to irrevocably waive that exemption in writing and come under PSC jurisdiction.

Key Provisions

• Adds Section 37-4-2A to allow exempt utilities to irrevocably waive exemption and come under PSC jurisdiction.
• Expands the definition of 'utility' to include wastewater collection and treatment systems (and related entities) for regulatory purposes.
• Creates a framework for certifying and monitoring the economic viability of wastewater management entities, with criteria such as independent CPA opinion, financial history, assets and liabilities, and business and rate plans.
• Requires financial assurances (e.g., performance bond, letter of credit, pledge of assets) before the PSC issues a certificate of economic viability.
• Requires rate charges for wastewater service by certified entities to be approved by the PSC under applicable utility rules and procedures.
• Allows enforcement actions including revocation of certification or civil penalties for noncompliance; permits the PSC to revoke and notify the department as needed.
• Acknowledges that rules for wastewater entities may differ from other Title 37 regulations.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Utilities