MUNICIPAL AUTHORITY WATER SHUTOFFS WOULD BE SUBJECT
TO PUC REGULATION UNDER O'PAKE BILL

          Harrisburg, June 15, 2009 -- Senator Michael A. O’Pake (D-Berks) announced today that he has filed legislation to protect municipal water and sewer authority customers by making the authorities subject to Public Utility Commission rate and shutoff regulation.
          “There is no effective oversight now when municipal authorities set their rates or decide to cut off service. They are pretty much left on their own in deciding what to do,” the Reading Democrat said. “Consumers of public authorities deserve the same protections against unfair rates and practices as customers of private companies have.”
          O’Pake said that while the PUC oversees proposed rate increases and gives other protections to customers of private companies, customers can challenge municipal authorities only by asking a court to step in. Even then, he said, courts lack the depth and kind of experience that the PUC has.
          “On top of having to hire their own lawyers to challenge an authority, “ O’Pake said, “ you could have different standards in every county, even within counties.”
          The Senate Democratic Whip said his proposal was prompted by a recent situation in which a collection agency hired by the Birdsboro Municipal Authority refused to allow payment plans for numerous customers facing bills amounting  into thousands of dollars  following a rate increase and installation of new meters.
          “The response by the authority literally left these people terrified,” O’Pake said. “Responsible, law-abiding families were facing immediate shut-offs of their water service, and were given no choice but to immediately come up with lump sum payments.”
          “It just makes sense to apply a single standard across the state, and to protect every consumer equally, regardless of where they live or who their provider is,” he said. 
                                                                        ###