Bill
SB 137
Senate Bill 137 allows privately owned sewer and wastewater systems in Alabama to opt for regulation by the Public Service Commission, enhancing oversight and service quality.
Senate Bill 137, titled "Public utilities; private sewer or wastewater systems, authorized to come under the jurisdiction of the Public Service Commission," was introduced on March 19, 2025, and has been enacted as Act 2025-106. The bill allows certain privately owned sewer and wastewater systems to voluntarily come under the regulatory jurisdiction of the Public Service Commission (PSC) in Alabama.
The primary intent of SB 137 is to provide a framework for privately owned sewer and wastewater systems that are not currently regulated by the PSC to opt into regulation. This aims to enhance oversight and potentially improve service quality and accountability for these systems.
Eligibility for Regulation: The bill allows privately owned sewer and wastewater systems that are affiliated with regulated systems to elect to come under PSC jurisdiction, provided they are not prohibited by local constitutional amendments.
Election Process: Affiliated systems can file a notice with the PSC to initiate the process of becoming regulated. The PSC will then certify and regulate these systems according to existing laws.
Rate Structure: The PSC will combine the capital expenditures and operating expenses of the affiliated systems with those of the regulated systems to establish a single rate structure for all customers. Adjustments may be made for pre-existing obligations or unique circumstances in specific service areas.
Fees: Systems that elect to come under PSC jurisdiction will be subject to existing regulatory fees as outlined in Alabama law.
Exemptions: The bill does not affect the authority of the Jefferson County Board of Health and does not apply in counties with local constitutional amendments that regulate wastewater utilities, unless permitted by those amendments.
Affected Entities: The bill primarily affects privately owned sewer and wastewater systems that are not currently under PSC regulation but wish to consolidate with regulated systems. This could lead to improved regulatory oversight and potentially better service for customers.
Public Service Commission Obligations: The enactment of this bill will increase the obligations of the PSC, with costs dependent on the number of systems that choose to come under its jurisdiction. These costs may be offset by existing regulatory fees.
Effective Date: The provisions of SB 137 will take effect on October 1, 2025.
Legislative Journey: The bill passed through various legislative stages, including committee reviews and readings in both the Senate and House, before being enacted on April 8, 2025.
Senate Bill 137 represents a significant step towards enhancing the regulatory framework for privately owned sewer and wastewater systems in Alabama. By allowing these systems to opt into PSC oversight, the bill aims to improve service quality and accountability while providing a structured process for regulation.
Compiled from official sources — confirm details with the bill’s official record.
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