The West Virginia House of Delegates introduced House Bill 5005 on January 23, 2024, aiming to enhance the authority of the Public Service Commission (PSC) in managing distressed or failing water and wastewater utilities. The bill seeks to streamline the process by which the PSC can intervene when a utility is struggling, allowing it to mandate that a capable proximate utility take over operations if an agreement cannot be reached.

Key provisions of the bill include the PSC's ability to specify contract terms between the distressed utility and a capable proximate utility, ensuring that essential services continue without interruption. Additionally, the bill requires that any hearings regarding these proceedings be held in the county where most customers reside, or within 25 miles of the utility's service area, promoting local engagement in the decision-making process.

Debate surrounding the bill has focused on its implications for utility management and customer service. Proponents argue that the bill will protect consumers by ensuring reliable utility services, while critics express concerns about potential overreach by the PSC and the implications for local governance. The bill also allows the PSC discretion on whether to hold evidentiary hearings, which could impact transparency and public involvement in the process.

The economic implications of House Bill 5005 are significant, as it addresses the growing issue of failing utilities in West Virginia, which can lead to public health concerns and economic instability in affected communities. By facilitating smoother transitions to capable operators, the bill aims to mitigate service disruptions and enhance the overall reliability of water and wastewater services.

As the bill progresses through the legislative process, its potential to reshape utility management in West Virginia remains a focal point of discussion among lawmakers, stakeholders, and the public. The outcome of this bill could set a precedent for how distressed utilities are handled in the future, impacting both service quality and regulatory practices across the state.