Committee Approves Measure to Put Some Private Sewer Systems Under PSC Oversight

A Madison County committee voted to approve HP 337, a proposal described in committee as creating a Madison County constitutional amendment to place certain privately owned sewer systems that use public rights-of-way and public roads under the oversight of the Public Service Commission.

Representative Bob Nash introduced the bill highlights to the committee in the chair’s temporary absence and asked staff and stakeholders to address committee questions. John McDonald, identifying himself as representing what he described as the largest private wastewater utility in Madison County, asked the committee to consider clarifying language about how construction contributions would be considered by the Public Service Commission and offered to work with the bill sponsor on amendments.

Committee members focused much of the discussion on technical classifications and customer impacts. A committee member explained that an amendment would change the bill’s text to replace the prior threshold ‘‘grade 3 or higher’’ with ‘‘grade 1, 2, 3, or 4,’’ expanding the classes of wastewater systems covered by the measure. Members asked how grades are defined and who regulates water-quality limits; speakers said grades generally reflect system size and treatment level and that ADEM (the environmental regulator referenced in the meeting) governs scientific studies and allowable discharge standards.

A central point of contention was potential rate impacts for customers if systems become regulated utilities. John McDonald said his utility’s projection was that monthly user rates could rise "maybe 20%" under PSC regulation, explaining that his company has kept fees below what regulated rates would include and that regulated rate bases in other states can include items such as income tax. When asked about the source of that estimate, McDonald said it was a rough projection based on experience in other states where similar regulation occurred and that exact outcomes vary because rules differ by state.

McDonald also described capacity and treatment plans for some systems, saying his utility has committed to building a membrane treatment plant that would produce effluent at levels he characterized as "right at drinking water level standards." Committee members noted Madison County is conducting a regional master plan to address wastewater issues.

After discussion, a committee member moved, another seconded, and the committee took a voice vote. The meeting record shows 'Aye' and no recorded opposition; the chair declared the motion carried and the committee adjourned. The transcript does not record the motion’s exact wording on the record nor a numeric roll-call tally.

Votes at a glance:
HP 337 — Motion to approve (exact motion text not specified in the transcript); committee voice vote recorded as 'Aye' with no opposition announced; outcome: approved (committee level).