Committee backs permissive bill letting privately owned sewer systems opt into PSC regulation

A committee gave a favorable report to HP 140, a bill that would allow privately owned, unregulated sewer systems that are affiliated with a regulated sewer or water company to elect to come under the Alabama Public Service Commission's regulation, a sponsor told the panel.

The sponsor said the bill is a general measure (not limited to Shelby County) meant to let companies that already operate regulated systems bring related unregulated pieces under the PSC for a single regulatory structure. “It affects those pieces of that water company that are in other counties. It also makes it available for anyone who wanted to do it to put themselves under,” the sponsor said.

The sponsor described efficiencies from a common regulatory structure: affiliated entities often share corporate services such as finance, legal and maintenance, and bringing them under PSC oversight could align rate-setting and regulatory oversight across those entities.

Committee members asked whether the bill forces systems into PSC regulation; the sponsor repeatedly said the proposal is permissive: a company could choose to remain unregulated. The sponsor said, “It's an allow. It's not a shallow. It's an allow. They could just come over if they want to, and it would be beneficial for them.” (Transcript phrasing preserved.)

A member said the PSC would collect information and set rates, and the sponsor agreed that PSC processes would be used for rate-setting.

A motion for a favorable report was made and seconded; the committee recorded the voice vote in favor and returned a favorable report.

The transcript excerpt does not record a roll-call vote or the bill sponsor's full name in the provided text.