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VT H0446

VT H0446
An act relating to requiring municipal corporations to set equalized water and sewer rates throughout the service area


summary

Introduced
02/28/2025
In Committee
02/28/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Session

Bill Summary

This bill proposes to (1) require municipal corporations to establish water and sewer service rates based on the actual cost of supplying those services; (2) require municipal corporations to set equal rates for all users within the service area of the water or sewer utility; and (3) establish an appeal process for ratepayers and property owners who are aggrieved by a disproportionate water rate or sewer charge.

AI Summary

This bill requires municipal corporations to establish water and sewer service rates based on the actual cost of providing those services, ensuring that rates do not exceed the true expenses of supplying water or sewer disposal to inhabitants within a service area. The legislation mandates that rates must be equalized across the entire service area, preventing differential pricing for different users. Importantly, the bill creates an appeal process for ratepayers and property owners who believe the established rates are disproportionate: they can petition the Public Utility Commission for review within 90 days of rate setting, with the petition requiring signatures from at least five percent of affected ratepayers or property owners. The Public Utility Commission will then conduct a de novo review of the rates, with the authority to affirm, amend, order refunds, or authorize surcharges to recover lost revenues. The bill will supersede any conflicting local charter provisions or existing rate structures and will take effect on July 1, 2025, providing municipal corporations time to adjust their current rate-setting practices to comply with the new requirements.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Read first time and referred to the Committee on Government Operations and Military Affairs (on 02/28/2025)

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