17290_Authority_February_2024

!" !!! !"#$%&'"()*'+ !!"!!#$%&'(&)!*+*, Pennsylvania House Panel Revisits Utility Privatization Law as Consumers Face Soaring Water and Sewer Bills By Peter Hall tĂƚĞƌ ĂŶĚ ƐĞǁĞƌ ďŝůůƐ ĨŽƌ ƚŚŽƵƐĂŶĚƐ of Pennsylvania consumers have ƐŽĂƌĞĚ ďLJ ƚƌŝƉůĞ ĚŝŐŝƚƐ ƐŝŶĐĞ Ă ϮϬϭϲ ůĂǁ ĐŚĂŶŐĞĚ ƚŚĞ ǁĂLJ ŵƵŶŝĐŝƉĂů ƵƟůŝƟĞƐ ĂƌĞ ǀĂůƵĞĚ ǁŚĞŶ ĨŽƌͲƉƌŽĮƚ ĐŽŵƉĂŶŝĞƐ buy them, a state House panel heard dƵĞƐĚĂLJ͕ ĞĐĞŵďĞƌ ϭϮ͕ ϮϬϮϯ͘ dŚĞ ůĂǁ ĂůůŽǁƐ ŵƵŶŝĐŝƉĂů ǁĂƚĞƌ ĂŶĚ ƐĞǁĞƌ ƵƟůŝƟĞƐ ƚŽ ŶĞŐŽƟĂƚĞ ǁŝƚŚ ĨŽƌͲ ƉƌŽĮƚ ƵƟůŝƟĞƐ ĨŽƌ ƚŚĞ ĨĂŝƌ ŵĂƌŬĞƚ ǀĂůƵĞ rather than the actual value of the ƐLJƐƚĞŵ͘ dŚĞ ŚŝŐŚĞƌ ƉƵƌĐŚĂƐĞ ƉƌŝĐĞƐ͕ ŝŶ ƚƵƌŶ͕ ŐŝǀĞ ŶĞǁ ŽǁŶĞƌƐ Ă ďĂƐŝƐ ƚŽ ƐĞĞŬ ĂƉƉƌŽǀĂů ƚŽ ĐŚĂƌŐĞ ŚŝŐŚĞƌ ƌĂƚĞƐ͕ ǁŚŝĐŚ ƚŚĞLJ ƵƐƵĂůůLJ ƌĞĐĞŝǀĞ͕ ĐŽŶƐƵŵĞƌ ĂĚǀŽĐĂƚĞƐ ƚĞƐƟĮĞĚ͘ The result, state Consumer Advocate WĂƚƌŝĐŬ ŝĐĞƌŽ ƐĂŝĚ͕ ŝƐ ƚŚĂƚ ĐƵƐƚŽŵĞƌƐ ŽĨ ƉƵďůŝĐ ǁĂƚĞƌ ĂŶĚ ƐĞǁĞƌ ƵƟůŝƟĞƐ ĂĐƋƵŝƌĞĚ ďLJ ĨŽƌͲƉƌŽĮƚ ĐŽŵƉĂŶŝĞƐ ƐŝŶĐĞ ƚŚĞ ůĂǁ ƚŽŽŬ ĞīĞĐƚ ƉĂLJ ĂďŽƵƚ Ψϴϱ million more annually for service that ƚŚĞLJ ŽƚŚĞƌǁŝƐĞ ǁŽƵůĚ͘ /ŶǀĞƐƚŽƌͲŽǁŶĞĚ ĐŽŵƉĂŶŝĞƐ͕ ƐƵĐŚ ĂƐ ƋƵĂ W ĂŶĚ WĞŶŶƐLJůǀĂŶŝĂ ŵĞƌŝĐĂŶ tĂƚĞƌ͕ ŚĂǀĞ ƉƵƌĐŚĂƐĞĚ ϮϮ ŵƵŶŝĐŝƉĂů ƵƚŝůŝƚŝĞƐ ƵŶĚĞƌ ƚŚĞ ŶĞǁ ǀĂůƵĂƚŝŽŶ ŵĞƚŚŽĚ ĂŶĚ ǁŽŶ ƌĂƚĞ ŝŶĐƌĞĂƐĞƐ ƌĂŶŐŝŶŐ ĨƌŽŵ ϰϰй ƚŽϭϲϲй͕ according to the Pennsylvania Public hƚŝůŝƚŝĞƐ ŽŵŵŝƐƐŝŽŶ͘ ͞dŚĞLJ͛ƌĞ ŶŽƚ ďƵLJŝŶŐ ƚŚĞ ƉƵŵƉƐ ĂŶĚ ƚŚĞ ƉŝƉĞƐ ĂŶĚ ƚŚĞ ƚƌĞĂƚŵĞŶƚ ƉůĂŶƚƐ͘ tŚĂƚ ƚŚĞLJ͛ƌĞ ďƵLJŝŶŐ ŝƐ ƚŚĞ ĐƵƐƚŽŵĞƌƐ͕ ǁŚŝĐŚ ŝƐ Ă ůŽŶŐͲ ƟŵĞ ĨŽƌĞǀĞƌ ƌĞǀĞŶƵĞ ƐƚƌĞĂŵ͕͟ ŶƚŚŽŶLJ ĞůůŝƩŽ͕ džĞĐƵƟǀĞ ŝƌĞĐƚŽƌ ŽĨ ƚŚĞ EŽƌƚŚ WĞŶŶ tĂƚĞƌ ƵƚŚŽƌŝƚLJ͕ ƐĂŝĚ͘ ƉĂĐŬĂŐĞ ŽĨ ďŝůůƐ ŶŽǁ before the House Consumer WƌŽƚĞĐƟŽŶ͕dĞĐŚŶŽůŽŐLJ ĂŶĚ hƟůŝƟĞƐ ŽŵŵŝƩĞĞ ǁŽƵůĚ ƌĞƋƵŝƌĞ ƵƟůŝƚLJ ĐŽŵƉĂŶŝĞƐ ƚŽ ƵƐĞ ůŽǁĞƌ ǀĂůƵĞƐ ĨŽƌ ŶĞǁůLJ ƉƵƌĐŚĂƐĞĚ ǁĂƚĞƌ ĂŶĚ ƐĞǁĞƌ ƐLJƐƚĞŵƐ ǁŚĞŶ ƐĞĞŬŝŶŐ ƌĂƚĞ ŝŶĐƌĞĂƐĞƐ͕ spread the impact over a longer period and improve transparency of ƚŚĞ ƉƌŽĐĞƐƐ͘ Ƶƚ ŝĐĞƌŽ ĐĂůůĞĚ ĨŽƌ ůĂǁŵĂŬĞƌƐ ƚŽ ŐŽ further and repeal the law. 'ŽǀĞƌŶŽƌ dŽŵtŽůĨ ƐŝŐŶĞĚ Đƚ ϭϮ ƚŽ ĂŵĞŶĚ WĞŶŶƐLJůǀĂŶŝĂ͛Ɛ ƉƵďůŝĐ ƵƟůŝƚLJ ůĂǁ ŝŶ Ɖƌŝů ϮϬϭϲ͘ /ƚ ĂĚĚĞĚ ^ĞĐƟŽŶ ϭϯϮϵ͕ ǁŚŝĐŚ ĐƌĞĂƚĞĚ ŶĞǁ ŽƉƟŽŶƐ ĨŽƌ ǀĂůƵŝŶŐ ŵƵŶŝĐŝƉĂů ƵƟůŝƟĞƐ ƚŚĂƚ ǁĞƌĞ ĂĐƋƵŝƌĞĚ ďLJ ŝŶǀĞƐƚŽƌͲŽǁŶĞĚ ƵƟůŝƟĞƐ͘ dŚĞ ƉƌŝŽƌ ůĂǁ ĚŝƐĐŽƵƌĂŐĞĚ ƐƵĐŚ ƐĂůĞƐ ďĞĐĂƵƐĞ ƚŚĞ ǀĂůƵĞ ŽĨ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚͲŽǁŶĞĚ ƵƟůŝƟĞƐ ǁĂƐ ďĂƐĞĚ ŽŶ ƚŚĞ ŽƌŝŐŝŶĂů ĐŽŶƐƚƌƵĐƟŽŶ ĐŽƐƚ ŵŝŶƵƐ ĚĞƉƌĞĐŝĂƟŽŶ͘ sĂůƵŝŶŐ ŶĞǁůLJ ĂĐƋƵŝƌĞĚ ǁĂƚĞƌ Žƌ ƐĞǁĞƌ ƐLJƐƚĞŵƐ Ăƚ ƚŚĞ ĨĂŝƌ ŵĂƌŬĞƚ ƌĞĚƵĐĞĚ ƚŚĞ ƌŝƐŬ ƚŚĂƚ ĐŽŵƉĂŶŝĞƐ ǁŽƵůĚ ŶŽƚ ďĞ ĂďůĞ ƚŽ ƌĞĐŽǀĞƌ ƚŚĞŝƌ ŝŶǀĞƐƚŵĞŶƚƐ͕ Wh ŚĂŝƌŵĂŶ ^ƚĞƉŚĞŶ Ğ&ƌĂŶŬ ƐĂŝĚ ŝŶ ŚŝƐ ƚĞƐƟŵŽŶLJ͘ Ğ&ƌĂŶŬ ƐĂŝĚ ƌĂƚĞƐ ĨŽƌ ĐƵƐƚŽŵĞƌƐ ŽĨ ƵƟůŝƟĞƐ ƚŚĂƚ ĂƌĞ ĂĐƋƵŝƌĞĚ ƵŶĚĞƌ ^ĞĐƟŽŶ ϭϯϮϵ ĂƌĞ ůŝŬĞůLJ ƚŽ ŝŶĐƌĞĂƐĞ ĨŽƌ a number of reasons such as the need to pay for deferred maintenance and ĐĂƉŝƚĂů ŝŵƉƌŽǀĞŵĞŶƚƐ͘ dŚĞ ĨŽƌͲƉƌŽĮƚ companies must also provide a return ŽŶ ŝŶǀĞƐƚŵĞŶƚ͕ Ğ&ƌĂŶŬ ƐĂŝĚ͕ ǁŚŝĐŚ ĨƵƌƚŚĞƌ ŝŶĐƌĞĂƐĞƐ ƌĂƚĞƐ͘ ƋƵĂ WĞŶŶƐLJůǀĂŶŝĂ WƌĞƐŝĚĞŶƚ DĂƌĐ >ƵĐĐĂ ƐĂŝĚ ƚŚĂƚ ǁŚĞŶ ƚŚĞ ĚŝƌĞĐƚŽƌƐ ŽĨ ŐŽǀĞƌŶŵĞŶƚͲŽǁŶĞĚ ƵƟůŝƟĞƐ ǀŽƚĞ ƚŽ ƐĞůů ƚŽ Ă ĨŽƌͲƉƌŽĮƚ ƵƟůŝƚLJ ĐŽŵƉĂŶLJ͕ ƚŚĞLJ ĂƌĞ ŽŌĞŶ ĚĞĂůŝŶŐ ǁŝƚŚ ĚĞĨĞƌƌĞĚ maintenance as a result of rates that ĂƌĞ ƚŽŽ ůŽǁ ĂŶĚ ĐŚĂůůĞŶŐĞƐ ŝŶ ŵĞĞƟŶŐ environmental standards for lead and ŽƚŚĞƌ ƐƵďƐƚĂŶĐĞƐ͘ >ƵĐĐĂ ƐĂŝĚ ŽŶĞ ĞdžĂŵƉůĞ ŽĨ Ă ƵƟůŝƚLJ ƚŚĂƚ ƋƵĂ WĞŶŶƐLJůǀĂŶŝĂ ƉƵƌĐŚĂƐĞĚ ƚŚĂƚ ĨĂĐĞĚ ĚŝƌĞ ƉƌŽďůĞŵƐ ǁĂƐ ƚŚĞ ǁĂƚĞƌ ĂƵƚŚŽƌŝƚLJ ŝŶ ^ŚĞŶĂŶĚŽĂŚ͕ ^ĐŚƵLJůŬŝůů ŽƵŶƚLJ͘ tŚĞŶ ƋƵĂ ƚŽŽŬ ŽǀĞƌ͕ ŝƚ ĨŽƵŶĚ ƚŚĂƚ ϲϬй ŽĨ ƚŚĞ ǁĂƚĞƌ ƚŚĞ ƐLJƐƚĞŵ ĚƌĞǁ ĨƌŽŵ ŝƚƐ ƐŽƵƌĐĞƐ ǁĂƐ ƵŶĂĐĐŽƵŶƚĞĚ ĨŽƌ͕ ůŽƐƚ ƚŚƌŽƵŐŚ ůĞĂŬƐ Žƌ ŵĞƚĞƌƐ ƚŚĂƚ ǁĞƌĞŶ͛ƚ ǁŽƌŬŝŶŐ͘ ƋƵĂƌƚĞƌ ŽĨ ƚŚĞ ƵƟůŝƚLJ͛Ɛ ϭϵϱ ĮƌĞ ŚLJĚƌĂŶƚƐ ĚŝĚ ŶŽƚ ǁŽƌŬ͕ >ƵĐĐĂ ƐĂŝĚ͘ ͞dŚŝƐ ĂƵƚŚŽƌŝƚLJ ǁĂƐ ĂůůŽǁĞĚ ƚŽ ŽƉĞƌĂƚĞ ǁŝƚŚŽƵƚ ĂŶLJ ŵĞĂŶŝŶŐĨƵů ŽǀĞƌƐŝŐŚƚ ĨŽƌ LJĞĂƌƐ͕ ƚŚĞƐĞ ĐŽŶĚŝƟŽŶƐ ĚŝĚ ŶŽƚ ŚĂƉƉĞŶ ŽǀĞƌŶŝŐŚƚ͘ dŚŝƐ ŝƐ ƐŽŵĞƚŚŝŶŐ ƚŚĂƚ ǁĂƐ ƉƌŽŐƌĞƐƐŝǀĞůLJ ǁŽƌƐĞ ĂŶĚ ǁŽƌƐĞ ƐŝŵƉůLJ ďĞĐĂƵƐĞ ƚŚĞLJ ĐŚŽƐĞ ŶŽƚ ƚŽ ŝŶǀĞƐƚ ŝŶ ĮdžŝŶŐ ƚŚĂƚ ƐLJƐƚĞŵ͕͟ >ƵĐĐĂ ƐĂŝĚ͘ ĞĐĞŵďĞƌ ϭϮ͕ ϮϬϮϯ