State House passes bill to put PWSA under PUC oversight
Legislation to put the Pittsburgh Water and Sewer Authority under the oversight of the state’s Public Utility Commission is moving briskly through the Legislature — it unanimously passed the House on Thursday with no hearings or public discussion. The bill now moves to the Senate.
“I just think this is a very big topic that's come at us incredibly quickly,” said city Councilwoman Deborah Gross, a PWSA board member. She requested this week that City Council be briefed on implications of the legislation. She said state lawmakers were deciding “what to do with city residents’ assets.”
“The speed is a real problem for us. We would like a little more time to figure out just what PUC oversight would mean and how to make this bill work for PWSA ratepayers in the best way possible,” said Aly Shaw, an organizer with the Our Water Campaign, a
coalition including Pittsburgh United, the Sierra Club and the Pennsylvania Interfaith Impact Network. It advocates for publicly controlled water.
House Speaker Mike Turzai, R-Marshall, and Rep. Harry Readshaw, D-Carrick, announced May 25 that they would introduce the bill. The bill was voted out of committee Monday and had a final floor vote Thursday in the House.
Mr. Turzai said the rapid process reflects unanimous support. He said PWSA teeters “on the verge of collapse” with more than $750 million in debt, lead contamination concerns and other difficulties.
“Everybody knows there’s a crisis with respect to the Pittsburgh Water and Sewer Authority, and they want something done,” Mr. Turzai said.
He called the authority “a disaster,” accusing City Council and Mayor Bill Peduto of leadership failures there. Mr. Turzai has indicated that he may run for governor in 2018.
“Pittsburgh is part of the commonwealth of Pennsylvania, and we care about our citizens,” Mr. Turzai said. “We’re not going to abdicate our responsibility like City Council did.”
Council President Bruce Kraus and Peduto aide Kevin Acklin defended city leaders. Council and Mr. Peduto, “probably for the first time in decades, are trying to solve the systemic problems at PWSA,” Mr. Acklin said.
“We have not run away from this responsibility,” he said. “This administration has taken on the responsibility of restructuring and fixing the authority.”
At the city’s behest, a contractor is reviewing PWSA for possible restructuring. That analysis should be complete by the fall.
Mr. Turzai and Mr. Readshaw have said PUC oversight is critical to addressing issues with billing, system leaks and thousands of lead service lines, many yet to be identified. State Rep. Dom Costa, D-Stanton Heights, said he had no issue with the House bill’s swift passage.
“To say we need to have a hearing is kind of crazy. Look what's been going on the last four or five years. PWSA is in deep trouble,” Mr. Costa said.
He said he believes PUC oversight will make the PWSA more transparent.
“I get nothing but complaints in my office about them,” Mr. Costa said.
He said he does not believe the legislation is a route to privatization — a fear expressed by some activists. Questions about whether PWSA should remain public are “a non-issue,” Mr. Turzai has said. He said his mission is for the authority to fall under PUC guidance and review.
“There's no way that the state is looking to take over or privatize,” Mr. Costa said. “We want it tot work as an independent agency. But the quality of the water has to be above reproach.”
“It's not really doing anything other than bringing them under the authority of the PUC,” said Rep. Jake Wheatley, D-Hill District.
Speaking last week at the Highland Park Reservoir, Mr. Peduto said he does not oppose additional oversight for the agency.
“The only concern we have about having PUC oversight is that it would be step one of privatizing the system, and so we've made it very clear both to Speaker Turzai and to Rep. Readshaw that the privatization of PWSA is off the table, that the opportunity to look at different ways to be able to get the needed funding — we would welcome their involvement,” the mayor said.
Sen. Wayne Fontana, DBrookline, said he supports the legislation. “My understanding is, it doesn't take the PWSA authority away, [but] there are certain things they will have to go to the PUC with,” such as rate hikes, he said.
Senate Minority Leader Jay Costa, D-Forest Hills, said he is hopeful the bill will pass before the June 30 budget deadline, but he would not oppose a hearing to make sure the public is informed.
Protections in the Public Utility Code could benefit PWSA consumers, said Patrick Cicero, executive director of the Pennsylvania Utility Law Project.
Mr. Cicero said he was not supporting or opposing the legislation but said that under the PUC, consumers would have the right to file complaints, enjoy protections over disconnection notices, and benefit from the Office of Consumer Advocate — an independent office under the attorney general — that represents residential ratepayers.