Committee advances bill allowing PUC to order sale of failing water utilities

The Committee on Agriculture, Land Use, Natural Resources and Water voted to move Senate Bill 845A to the floor with a due‑pass recommendation after a work session on May 12.

Senate Bill 845A would authorize the Oregon Public Utilities Commission (PUC) to order the sale of an incumbent water utility if the utility cannot reasonably be expected to provide safe or adequate service, and to establish conditions for acquisition approval. Committee staff reported no amendment, minimal fiscal impact and no sub‑referral.

Members cited the PUC's stated concern that this is a rare circumstance but that the agency needs a statutory backstop so it will not be forced to assume long‑term managerial responsibility for defunct water systems. A committee member summarized the PUC's position: the measure is a "safety mechanism" rather than "government overreach."

Several members and local officials also discussed the broader challenge of aging small systems and the potential need for consolidation or other support to keep tiny operators viable. Rep. Fran Marsh encouraged consolidation to strengthen operators; a committee member cautioned that reluctance to raise fees will increase the number of systems unable to sustain operations.

The committee recorded a motion to move the bill to the floor with a due‑pass recommendation and closed the work session. A carrier was identified for subsequent floor action.

The bill advanced without recorded roll‑call dissent in the committee work session, and the committee noted that PUC would use the authority only after multiple steps and due‑process checks.