SB95 Alabama 2020 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

Republican

Session

Regular Session 2020

Title

Public water utilities, regulation of certain private water system utilities in Class 8 municipalities, Sec. 37-4-2.1 am'd.

Summary

SB 95 would let certain small private water utilities switch from Public Service Commission (PSC) regulation to regulation by the municipality they buy water from, but only with the municipality's approval.

What This Bill Does

The bill allows private water system utilities serving fewer than 1,000 customers that buy water from a Class 8 municipality to elect exemption from PSC regulation after petitioning the municipality and obtaining its approval, with the approval sent to the PSC. If approved, the utility is regulated by the municipality and can keep its current rates, while the municipality must approve any future rate changes (which may be set via a water purchase agreement or other written means). The election remains in effect until it is revoked in the same way the approval was granted, and revocation must be submitted to the PSC. If the utility does not follow this procedure, PSC regulation would continue.

Who It Affects

• Private water system utilities that have fewer than 1,000 customers and buy water from a Class 8 municipality; they could shift regulatory oversight from the Public Service Commission to the purchasing municipality, subject to approval and procedural steps.
• Public Service Commission and Class 8 municipalities; PSC would have reduced regulatory authority over those exempted utilities, while municipalities gain regulatory authority over them (and PSC retains oversight for those not following the procedure or not electing exemption).

Key Provisions

• Amends Section 37-4-2.1 to allow eligible private water system utilities to elect exemption from PSC regulation upon petition to and approval by the municipality from which they purchase water.
• Election becomes effective upon written notification to the PSC and municipal approval, and remains in effect until revoked by the same process with revocation submitted to the PSC.
• Current rates may be kept at the time of election; the municipality may approve future rate changes for the utility, either via a water purchase agreement or other written means, including prospective adjustments based on specified criteria.
• If the utility has not followed the required procedure, it remains under PSC regulation.
• The act becomes effective on the first day of the third month after its passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Utilities