The Alabama Senate  passed SB137, sponsored by State Sen. Jabo Waggoner (R-Vestavia Hills) that would allow certain privately owned sewer and wastewater systems to opt into regulation by the Alabama Public Service Commission.

Under existing law, only specific privately owned sewer systems fall under the Public Service Commission’s  jurisdiction. SB137 would allow private systems affiliated with those already regulated entities to voluntarily place themselves under the commission’s oversight. This includes shared ownership groups where a private system is under common control with an existing regulated entity.

“There’s some privately owned unregulated sewer systems, which are affiliated with regulated sewer systems,” said Waggoner. “They desire to come under the Public Service Commission.”

The bill would also enable the Public Service Commission to set unified rates across affiliated systems, considering their combined operating expenses and capital costs. However, adjustments could be made if pre-existing obligations or unique service area circumstances warrant different treatment.

The bill now heads to the Alabama House of Representatives for consideration. Today is day twelve of the 2025 legislative session. 

Grace Heim is a state and political reporter for Yellowhammer News. You can follow her on X @graceeheim or email her at [email protected].