SB137 Alabama 2025 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

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

SB137 lets certain privately owned sewer and wastewater systems affiliated with PSC-regulated systems opt into PSC regulation, creating a single rate structure for the combined entities.

What This Bill Does

An affiliated private system may elect to become subject to PSC regulation by filing a notice. The PSC will certify and regulate the system and determine its valuation using standard methods, considering the private utility's original cost and other allowed factors. Prospective rates and rate structures will be set to cover both the affiliated and regulated systems as a single package for all customers, with possible adjustments for pre-existing obligations or area-specific circumstances; existing rates stay in effect until PSC finalizes new ones. The act requires payment of PSC fees for wastewater management entities and notes it does not apply in counties with a local amendment authorizing wastewater regulation, and preserves authority of Jefferson County Board of Health.

Who It Affects

• Affiliated privately owned sewer or wastewater systems not currently under PSC regulation, who would gain the option to elect PSC regulation and be regulated as part of a combined entity.
• Customers served by those affiliated systems (and customers of the current PSC-regulated systems), who would be billed under a single, combined rate structure for the merged entity.

Key Provisions

• Defines an affiliated system as a sewer or wastewater system under common ownership/control with a regulated entity and not subject to PSC jurisdiction as of the act's effective date.
• Common ownership/control is defined as 50% or more voting shares or equivalent control by one party over the other entity.
• Regulated sewer or wastewater entity includes privately owned systems already under PSC rate jurisdiction; the act expands PSC reach to affiliated systems.
• An affiliated system may elect to be regulated by filing a notice with the PSC; the PSC will certify and regulate the system and determine valuation using Title 37 and other recognized rate-making factors.
• Rates for the combined affiliated and regulated systems are set as a single structure for all customers, with adjustments possible for pre-existing obligations or area-specific circumstances; existing rates remain in effect until final PSC rates are approved.
• Fees for wastewater management entities under PSC oversight apply to affiliated systems.
• The act does not apply in counties with local constitutional amendments authorizing wastewater regulation, except as permitted by those amendments; it does not override the Jefferson County Board of Health authority.
• 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