AL SB35

Adds Section 37-4-2.1 to the Code of Alabama 1975 to allow private water system utilities serving fewer than 1,000 customers to elect exemption from Public Service Commission regulation.

Exemption applies only to utilities that purchase water from a municipal water system in a Class 8 municipality and instead become subject to regulation by that municipality.

Election becomes effective upon filing written notification to the Public Service Commission and the municipality, and remains effective until revoked in the same manner.

Utilities making an election may maintain existing rates and charges without municipal approval; the municipality must thereafter approve any rate changes that are fair, just, and reasonable to both the water system and customers.

Rate approval may be established through a water purchase agreement between the private water system and municipality or other written means, and may include prospective rate adjustments based on specified criteria.