HB140 Alabama 2025 Session

Summary

Primary Sponsor

Arnold MooneyRepresentative

Republican

Session

2025 Regular Session

Title

Public utilities; private sewer or wastewater systems, authorized to come under the jurisdiction of the Public Service Commission

Summary

HB140 would let certain privately owned sewer and wastewater systems affiliated with regulated systems elect to come under the Public Service Commission and have a single rate structure for all their customers.

What This Bill Does

It lets affiliated private sewer and wastewater systems choose to enter PSC regulation, unless a local constitutional amendment prohibits it. It provides a process for making the election, including filing a notice with the PSC and PSC oversight of the election. If an election happens, the PSC would combine the affiliated system’s costs with those of the regulated systems to create a single rate structure for all customers, with adjustments possible for pre-existing obligations or unique local circumstances. Existing rates stay in effect until the PSC finalizes new rates, and the affiliated system would pay PSC fees for wastewater management entities.

Who It Affects

• Affiliated private sewer and wastewater systems that choose to elect PSC regulation (owners/operators), who would gain PSC oversight and a consolidated rate process.
• Customers served by those affiliated systems, who would be billed under a single PSC-determined rate structure for the combined entity.

Key Provisions

• Affiliated systems may elect to become subject to PSC regulation by filing a notice with the PSC.
• The PSC will certify and regulate the election and determine property valuation for rate-making using standard methods, considering private property, original cost, and other recognized elements.
• An election keeps the current rates in effect until the PSC finalizes and adopts new rates.
• Prospective rates will be set by combining the affiliated and regulated systems’ capital expenditures and operating expenses to create a single rate structure for all customers, with adjustments for pre-existing obligations or local circumstances as needed.
• Affiliated systems electing under this act will be subject to PSC fees for wastewater management entities.
• The act preserves certain local authorities (e.g., Jefferson County Board of Health) and may not apply in counties with a local constitutional amendment authorizing wastewater regulation, except as permitted by those amendments.
• Effective date: October 1, 2025.

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

Subjects

Telecommunications & Utilities