SB182 Alabama 2019 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Clyde ChamblissSenator
Republican
Session: Regular Session 2019
Title: Public water utilities, regulation of certain private water system utilities in Class 8 municipalities, Sec. 37-4-2.1 am'd.
Summary: SB 182 would require private, small water utilities that buy water from a Class 8 municipality to get the municipality’s approval before they can be exempt from Public Service Commission regulation, and it would give municipalities ongoing control over rates after the election.
What This Bill Does
The bill applies to private water system utilities serving fewer than 1,000 customers that buy water from a municipal system in a Class 8 municipality. It allows them to elect to be exempt from PSC regulation only after the supplying municipality approves, and the approval must be sent to the PSC. The election becomes effective when the utility notifies the PSC in writing and the municipality passes and submits a resolution; it remains in effect until the municipality revokes it with a resolution and that revocation is submitted to the PSC. After election, the utility may keep its current rates, but any later rate changes must be approved by the municipality, potentially via a water purchase agreement or other written method, and must be fair and reasonable to both the utility and its customers.

Who It Affects
Private water system utilities that serve fewer than 1,000 customers and buy water from a Class 8 municipality, who would need municipal approval to become exempt from PSC regulation.
Municipal governments in Class 8 municipalities, which would approve exemptions, regulate the exempted utilities, and approve future rate changes.
Public Service Commission, which would cease regulating these exempted utilities after the municipality approves the exemption and submits notice.

Key Provisions
Allows eligible private water system utilities to elect exemption from PSC regulation upon petition to and approval by the municipality from which they purchase water, with approval sent to the PSC.
Initial election becomes effective upon written notification to the PSC and the municipality’s resolution approval, and remains in effect unless the municipality revokes it by resolution and submits the revocation to the PSC.
Utility may maintain current rates at election; the municipality must approve any future rate changes, which may be set forth in a water purchase agreement or other written means and may include prospective adjustments based on specified criteria.
Section 37-4-2.1 is amended to codify the new process and authority for regulating these private water systems in Class 8 municipalities, with an effective date retired to the act’s passage and governor’s approval.

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