HB505 Alabama 2020 Session

Summary

Primary Sponsor

Arnold MooneyRepresentative

Republican

Session

Regular Session 2020

Title

Shelby Co., privately owned sewer systems using public rights-of-way of public roads, required to be regulated and certified by PSC, const. amend.

Summary

HB505 would bring certain privately owned sewer systems in Shelby County that use public road rights‑of‑way under Public Service Commission regulation through a local constitutional amendment.

What This Bill Does

The bill would apply only in Shelby County and require PSC oversight for privately owned sewer facilities that use public road rights‑of‑way, discharge to a Grade III+ treatment facility, and have residential or commercial customers billed a flat fee or by water usage. The PSC would certify and regulate their rates and charges under Title 37. Until PSC sets rates, the utilities would follow the most recent rate control agreement or the utility’s latest published rate. It also creates an opt‑out option for counties, municipalities, or GUSCs with a rate control agreement, which would remove PSC jurisdiction for those customers as long as the agreement stands, but with conditions if the agreement is invalid or terminated and a five‑year limit on re‑opt‑out after reinstatement.

Who It Affects

• Privately owned sewer systems in Shelby County that use public rights‑of‑way and discharge to Grade III+ facilities, and have residential or commercial customers billed a flat fee or by water usage, who would become subject to PSC regulation of rates and consumer protections.
• Customers of those sewer systems, who would be governed by PSC‑regulated rates and protections once regulation takes effect (or follow existing rate controls until PSC sets new rates).
• Shelby County government, municipalities, or Government Utility Service Corporations (GUSCs), which could opt out of PSC regulation for affected customers by entering a rate control agreement (with conditions and potential limits).
• The Public Service Commission, which would assume regulatory authority over these qualified utilities in Shelby County and determine applicability and scope of rate control.

Key Provisions

• Applies only in Shelby County to private sewer entities using public rights‑of‑way and discharging to Grade III+ facilities with residential/commercial customers billed via flat fees or usage-based charges.
• PSC would certify and regulate these entities’ rates, charges, and rate increases, in line with Title 37 of the Alabama Code, with implementation timed by the PSC.
• Until PSC sets rates, existing rates from the most recent rate control agreement or the utility’s latest published rate would apply.
• An opt‑out provision allows the county, a municipality, or a GUSC to avoid PSC regulation if they enter a rate control agreement; if the agreement is invalid, terminated, or unenforceable, PSC jurisdiction is restored.
• If opt‑out is used and PSC jurisdiction is later reinstated, the opt‑out cannot be used again for five years.
• For utilities serving more than one municipality, the opt‑out would vest with the municipality that has a rate control agreement as of or before January 1, 2021, subject to Shelby County Commission approval.
• An election would be held to approve the constitutional amendment.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Shelby County