Madison County; certain privately owned sewer systems subjected to Public Service Commission regulation; constitutional amendment

New Madison County sewer rate oversight

The law requires majority voter approval before this Madison County constitutional amendment takes effect. The amendment places qualifying private sewer systems under Alabama Public Service Commission certification and oversight of rates, charges, and increases. Covered systems collect, treat, or dispose of sewage and use public road rights-of-way, directly or through leases or contracts. They must charge residential or commercial customers a flat fee or a fee based on water use. They must also discharge to treatment facilities classified by Alabama environmental regulators as Grade I–IV on January 1, 2020, or later equivalents. Until the Commission sets rates, the latest controlling local rate agreement applies. Without an agreement, the company's latest published rate on the amendment's effective date applies. A county, municipality, or governmental utility service corporation can opt out of state oversight for customers covered by its rate agreement. Full state oversight returns if any part of that agreement becomes invalid, ends, or cannot be enforced. Following termination or invalidation, another opt-out is barred for five years after state oversight returns. For systems serving multiple municipalities, the opt-out belongs to the municipality with an agreement signed by January 1, 2026. Madison County Commission approval is also required. When setting rates, state regulators must exclude taxable customer connection charges from the calculation of contributions toward construction. This includes connection fees, tap fees, and capacity payments when the company pays state or federal taxes on them. No rate cut or household savings amount is specified.