SB271 Alabama 2020 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

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

SB271 would amend the Alabama Constitution to bring certain Shelby County privately owned sewer systems that use public road rights-of-way under Public Service Commission regulation for rates and consumer protections.

What This Bill Does

If enacted, it would require specific privately owned sewer systems in Shelby County that use public rights-of-way and discharge to Grade III+ facilities to be certified and regulated by the Public Service Commission, including oversight of rates and charges. The PSC would set or approve rates and charges, following Title 37 of the Alabama Code, with initial rates based on the most recent rate control agreement or the utility's latest published rate if none exists. The bill provides an opt-out option via local rate control agreements, with conditions for restoration of PSC jurisdiction and a prohibition on re-opting-out for five years after jurisdiction is restored.

Who It Affects

• Privately owned sewer entities in Shelby County that use public road rights-of-way and discharge to Grade III+ facilities, serving residential or commercial customers billed flat or by water usage, which would become subject to PSC certification and rate regulation.
• Residential and commercial customers served by these systems, whose rates and charges would be regulated by the PSC (subject to any local rate control agreements).

Key Provisions

• Applies only in Shelby County; targets privately owned sewer systems that use public rights-of-way and discharge to Grade III+ facilities for PSC regulation.
• Eligibility requires private entities with residential or commercial customers billed a flat fee or based on water usage to be regulated by the PSC.
• The PSC would certify and regulate the entities, plants, facilities, and utilities under Title 37 regarding rates, charges, and increases.
• Until PSC sets rates, the rates must follow the most recent rate control agreement or the utility's most recent published rate.
• An opt-out mechanism allows the county, municipality, or GUSC to avoid PSC regulation if a rate control agreement is in place; if the agreement is invalid or terminated, PSC regulation is restored, with a five-year limit on re-opting out after restoration.
• If a service area covers 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.
• A local election is required to approve the constitutional amendment, and ballot language describing the amendment would be provided.

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

Subjects

Shelby County