SB74 Summary

• Proposes a constitutional amendment applying only to Shelby County to bring certain privately owned sewer systems under Public Service Commission (PSC) jurisdiction and regulation.

• Applies to private sewer entities that use public rights-of-way of public roads and discharge to a Grade III or higher wastewater treatment facility with residential or commercial customers billed flat service fees or usage-based fees.

• PSC shall certify and regulate affected utilities under Title 37, Code of Alabama 1975, including regulation of rates, charges, and rate increases, with implementation timing determined by the PSC.

• Counties, municipalities, or governmental utility service corporations (GUSC) may opt out of PSC regulation if they have a rate control agreement with the sewer entity as of January 1, 2021, subject to Shelby County Commission approval.

• If a rate control agreement becomes invalid or is terminated, PSC jurisdiction is automatically restored; entities that opt out and later terminate their agreement cannot opt out again for five years.