Oregon PUC seeks authority to mandate water company sales for service failures

The Oregon State Legislature convened on April 10, 2025, to discuss a pivotal bill aimed at enhancing the state's ability to manage struggling water companies. The proposed legislation would empower the Public Utility Commission (PUC) to order the sale of a failing water utility to another provider under strict conditions, a move that has sparked both support and concern among lawmakers.

Currently, the PUC oversees 85 water companies serving approximately 95,000 Oregonians, ranging from small providers with just a few customers to larger ones with over 15,000. While most companies operate smoothly, issues have arisen in the past, necessitating PUC intervention. Notably, a water company in Deschutes County faced significant challenges, leaving its 109 customers without reliable service for years.

The new bill outlines specific criteria that must be met before the PUC can mandate a sale. These include violations of safety standards, failure to comply with PUC orders, and the potential risk to public health due to inadequate service. The PUC would also need to demonstrate that alternative solutions to a sale are impractical.

Despite the bill's potential to protect vulnerable communities, it faced opposition during the meeting. Some lawmakers expressed concerns about granting the government authority to force the sale of private companies. The discussion highlighted the delicate balance between ensuring public safety and respecting private enterprise.

As the bill moves forward, it underscores the urgency of addressing water service issues in Oregon, particularly for those residents who have suffered from inadequate access to clean water. The PUC's cautious approach to implementing such measures reflects a commitment to finding solutions that prioritize public health while navigating the complexities of private utility management.