HARRISBURG, Pa. (KYW Newsradio) — A series of bills aimed at stemming the privatization of municipal water and sewer systems is moving in the Pennsylvania House of Representatives.
A 2016 law changed how municipal utilities were valued in an effort to encourage the privatization of struggling municipal systems.
But state Rep. Robert Matzie says the majority of acquisitions since then have been well-maintained water and sewer systems. He says rate payers in those systems have been hit with what he calls “exorbitant” rate hikes.
“Based on a hearing we had several months ago and several stakeholder meetings we've had over the course of this session, I believe these bills in no way prevent acquisitions, and add needed guide rails,” said Matzie, who chairs the House Consumer Protection, Technology, and Utilities Committee, who introduced the legislation.
He says his bills would still allow the sale of stressed municipal water and sewer systems, but would limit the acquisition of healthy systems and limit rate increases after an acquisition.
Republican state Rep. Jim Marshall, the committee’s co-chair, says while he agrees changes need to be made, “Act 12 was passed to provide municipalities with a tool if they voluntarily wanted to exit water and wastewater businesses. I think there's a great opportunity to repair some struggling municipal run, authority run systems.”
Water companies say the rate increases are necessary to fix neglected systems that are long overdue for repair.
But Matzie says his bills would also set limits on the valuation of healthy water systems, extend the amount of time the Pennsylvania Public Utility Commission has to review acquisitions and increase notification requirements for residents.
The four bills moved out of committee on bipartisan votes and head to the full House for consideration.