SB35 Alabama 2013 Session

Summary

Primary Sponsor

Jerry L. Fielding

Republican

Co-Sponsors

Tom WhatleyJ.T. Waggoner

Session

Regular Session 2013

Title

Water systems, private serving less than 1,000 customers, purchasing water from Class 8 municipal system, exempt from regulation by Public Service Commission, Sec. 37-4-2.1 added

Summary

SB35 lets small private water systems that buy water from a Class 8 municipality opt out of Public Service Commission regulation and be regulated by the purchasing municipality.

What This Bill Does

If a private water system serves fewer than 1,000 customers and buys water from a Class 8 municipality, it may elect to be exempt from PSC regulation and be regulated by that municipality instead. The election takes effect when written notice is filed with the PSC and the municipality, and continues unless revoked. The system may keep its current rates at election time without further municipality approval, and the municipality will approve future rate changes that are fair and reasonable, typically through a water purchase agreement or other written method, with possible prospective adjustments based on set criteria.

Who It Affects

• Small private water system utilities serving fewer than 1,000 customers that purchase water from a Class 8 municipality — they would move regulatory oversight from the Public Service Commission to the purchasing municipality and may keep current rates at the time of election.
• Customers (ratepayers) of those private water systems — they would be subject to rate changes approved by the municipality and protected by the requirement that changes be fair, just, and reasonable.

Key Provisions

• Adds Section 37-4-2.1 to allow eligible private water systems to elect exemption from PSC regulation and be regulated by the municipality from which they purchase water.
• Election process: an initial election is effective upon filing written notification to the PSC and the municipality and remains in effect unless revoked in the same manner.
• Rate changes: the private system may maintain current rates at the time of election; thereafter, the municipality approves changes in rates and charges that are fair, just, and reasonable, potentially via a water purchase agreement or other written means with criteria for prospective adjustments.
• Effective date: the act becomes effective immediately after passage and approval by the governor.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Water and Sewer Systems