Relating to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities

This bill relates to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities. The bill increases the threshold amount requiring utilities board (board) approval from $500,000 to $3 million when a public utility is acquiring a water, sanitary sewer, or storm water utility.6 (regarding discrimination in rates).2A, but not certify compliance. The bill provides that the rate base in the final order approving an acquisition shall include reasonable and customary closing costs, the cost of appraisals, and regulatory and legal expenses incurred in connection with the acquisition. The bill provides that the board shall require a public utility to submit a purchase agreement for the acquisition and shall find the purchase agreement includes terms, conditions, requirements, and other provisions applicable to the system sought to be acquired and the public utility shall be in compliance with specified provisions in determining applicable ratemaking principles. The purchase agreement shall include a term allowing the parties days after final approval of the ratemaking principles to terminate the purchase agreement without penalty. The bill provides that the board shall issue a final order within 120 days of the filing of an application for the acquisition of an at-risk utility system, or an order within 180 days for all other acquisitions. Current law provides that the board shall issue a final order within 120 days of filing the application for a utility that is an at-risk system.