SB137 Summary

• Allows affiliated sewer and wastewater systems (unregulated systems under common ownership with regulated systems) to voluntarily elect to become subject to Public Service Commission regulation by filing a notice with the commission.

• Requires the Public Service Commission to certify and regulate elected affiliated systems under Title 37 of the Alabama Code, considering property value, original cost, reproduction cost, and other recognized rate-making elements.

• Affiliated systems electing regulation must continue charging existing rates until the Public Service Commission establishes new rates, and the PSC shall consider both the affiliated and regulated systems' combined capital expenditures and operating expenses to determine a single rate structure for all customers.

• Affiliated systems are subject to Public Service Commission fees for wastewater management entities under Section 22-25B-7.

• Act becomes effective October 1, 2025, and does not apply in counties with local constitutional amendments regulating wastewater utilities or affect the authority of the Jefferson County Board of Health.