Public Utilities Commission updates wastewater rules to speed emergency responses and clarify certificate process

The Public Utilities Commission told the committee it is modernizing wastewater rules that apply to investor‑owned utilities.

"We amend[ed] rule 12 20‑o4‑13 o9 by eliminating the automatic 3 year expiration of the certificate to provide service and related extension procedures," Kelly Cashman Grahams, general counsel for the commission, said. She said the rule replaces an automatic expiration with a rebuttable presumption that a certificate is invalid if the system is not completed within three years and that utilities will have an opportunity to explain the status if the commission initiates a review. The commission also consolidated certificate application requirements in rule text and replaced a preapproval requirement for reserve escrow withdrawals with a more practical approach that allows immediate access for emergencies and major capital projects, with 30‑day reporting and documentation requirements.

Representative Fritz asked whether the commission had an estimate of statewide capital investment needs; staff said the commission regulates only investor‑owned utilities (a relatively small share of systems) and does not produce a statewide figure and deferred water quality chemical‑treatment questions to TDEC. Committee members had no additional concerns and the committee moved the rule forward with a positive recommendation; the senate roll call returned eight ayes and the house voice vote carried.

Why it matters: the changes aim to speed emergency responses and create clearer, uniform application expectations for investor‑owned wastewater utilities while preserving oversight and reimbursement authority for misuse of escrow funds.

What’s next: the amendments were advanced with a positive recommendation and will continue through legislative review.