HB505 Summary

• Proposes a local constitutional amendment for Shelby County to bring privately owned sewer systems that use public road rights-of-way under Public Service Commission jurisdiction and regulation.

• Applies to sewer systems that discharge to Grade III or higher wastewater treatment facilities and bill residential or commercial customers a flat service fee or usage-based fee.

• Public Service Commission shall certify and regulate affected utilities including rates, charges, and rate increases in accordance with Title 37, Code of Alabama 1975.

• Allows counties, municipalities, or governmental utility service corporations to opt out of Public Service Commission regulation if they enter into a rate control agreement with the sewer system operator, but cannot re-opt out for five years if jurisdiction is later restored.

• For multi-municipality sewer systems, opt-out authority vests with the municipality that executed a rate control agreement as of or before January 1, 2021, subject to Shelby County Commission approval.