On February 12, 2019, Representative Tina Davis introduced a bill proposing to establish a new regulatory commission with oversight over municipal water and wastewater authorities. H.B. 494 would establish a Municipal Water and Wastewater Authority Oversight Commission (“Authority Commission”). Representative Davis previously sponsored H.B. 798, which would have amended the Public Utility Code to subject municipal water and wastewater authorities to regulation by the Pennsylvania Public Utility Commission (“PUC”). Introduced in 2017, H.B. 798 failed to move out of the Consumer Affairs Committee.
Continue Reading New House Proposal Would Subject Municipal Water, Wastewater Authorities to Additional Oversight
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Stormwater Fee Proposals Reintroduced in Pennsylvania General Assembly
Republican Representative Garth Everett, in a cosponsorship memorandum posted on February 1st, announced plans to reintroduce a package of bills that would expand the ability of municipalities throughout Pennsylvania to assess stormwater management fees. These proposals, contained in former House Bills 913 through 916 (2017-2018 session), died in the Senate last term after being passed with bipartisan support by the House.
Continue Reading Stormwater Fee Proposals Reintroduced in Pennsylvania General Assembly
Commonwealth Court Requires Reexamination of PA Monetization Deal
On October 11, 2018, the Commonwealth Court of Pennsylvania (“Court”) vacated the Pennsylvania Public Utility Commission (“PUC”) Order approving the acquisition of the wastewater system assets of New Garden Township and New Garden Sewer Authority (collectively “New Garden”) by Aqua Pennsylvania Wastewater, Inc. (“Aqua”).[1] Aqua’s Application sought PUC approval of the acquisition, a Certificate of Public Convenience to furnish wastewater service to customers in and around the service territory of New Garden, and, approval of a rate base predicated on the acquisition price, rate commitments and transaction costs.[2]
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Sewer Authorities Could Owe Compensation for Repeated Sewage Overflows
Sewage backups tend to make relationships between landowners and their municipal sewer authorities rather, well, messy. When property is impacted by a sewer authority’s negligence, landowners would typically find a remedy in a trespass action. However, a recent decision by the Commonwealth Court of Pennsylvania holds that repeated sewage backups may cause a de facto taking under the Pennsylvania Eminent Domain code, requiring compensation to the landowner. This is yet another area of concern and possible liability for municipal authority operators.
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Challenges Mounting to Stormwater Fee Programs in Pennsylvania
Across much of the United States, the number of municipalities imposing stormwater management fees upon property owners has increased dramatically in recent years. The rising prevalence of stormwater management fees has predictably led to local and state court challenges by businesses, as non-residential property owners are typically more severely impacted by stormwater management fees in…
Generating Value from Public Assets
Monetization is the process of converting assets into economic value. Looking for options to generate greater revenue, municipalities and public sector entities have begun to consider the transfer to private operators of a greater variety of public assets than in the past. There has also been the development recently of more creative and profitable public-private partnerships.
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Proposed Legislation Would Require Public Meeting Prior to Sale of Public Water, Sewer Systems
A bill introduced by Representative Kate Harper (R-Montgomery) would impose a new public meeting requirement on municipalities considering selling or leasing their water or sewer systems. The bill was recently approved in the House unanimously, and has been referred to the Senate Consumer Protection and Professional Licensure Committee.
House Bill 477 would require municipalities to…
McNees Attorneys Provide Legal Update on Municipal Storm Water Management
McNees attorneys Tim Horstmann, Ade Bakare and Kathy Pape recently provided an update on municipal storm water management to the membership of the Pennsylvania State Association of Boroughs. Their presentation addressed recent changes in Pennsylvania laws governing municipal storm water management in boroughs, permissible user fee structures, and additional funding streams that are…
New Funding Mechanisms for Municipal Stormwater Management
For Pennsylvania municipalities facing a rising tide of costs from implementing storm water management plans, the available funding options vary depending on where you are and what you are – but that could change as soon as later this year. The General Assembly has passed several laws that authorize certain municipalities and municipal authorities to impose “reasonable and uniform” fees to fund storm water management plans – and several additional bills are pending that, if passed, would extend these funding mechanisms to municipal entities across most of Pennsylvania.
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Electric Costs in Ellwood City Spur Proposed Legislation to Restrict Use of Electric Revenue to Fund Municipal Operations
On May 18, 2017, House Bill 1405 was introduced into the Pennsylvania General Assembly. The proposed legislation, which would restrict a municipality’s ability to utilize revenue generated by a municipal electric system, would significantly impact 35 municipalities in PA that purchase wholesale power on behalf of residents and distribute the power through municipal-owned electric distribution system.
Continue Reading Electric Costs in Ellwood City Spur Proposed Legislation to Restrict Use of Electric Revenue to Fund Municipal Operations