PUC Approves Changes to Act 12 Notices, Process  

The Pennsylvania Public Utility Commission approved revised guidelines and procedures by motion designed to increase public involvement and provide a consistent process for reviewing and evaluating the acquisition of municipal or authority-owned water and wastewater systems under Act 12 of 2016.  

The Final Supplemental Implementation Order will update existing guidelines and procedures in the tentative order in four specific areas, including:   

  • Require utilities to hold at least two in-person public hearings before signing an asset purchase agreement. This could include a public meeting held by a municipality in which the purchase is on the agenda. The tentative order provides flexible options for notifying the public about the hearing, including social media posts, community newsletters and direct outreach through text or email. The motion to approve the final order noted PSATS support of this concept, which was made in accordance with PSATS resolutions. 
  • Require sales to include attestation that the seller is aware of potential impacts to the utility’s rates and has communicated this to existing customers.   
  • Make the valuation process consistent by requiring equal weights for cost, income, and market appraisals.   
  • Publish a reasonableness review ratio by the PUC to compare the ration of the depreciated original cost of the selling utility and the allowable transaction price.   

PSATS submitted comments on the draft order in accordance with standing resolutions, which can be viewed here. Click here for the PUC press release. The Final Supplemental Order will be posted in the PUC docket M-2016-2543193 once published.  

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