17736_Authority_August

municipalauthorities.org | 47 Table 1: Summary of Section 1329 (Ratemaking Rate Base vs. Depreciated Original Cost) Since Section 1329 was added to the Public Utility Code there have been twenty-one (21) approved acquisitions that have been or will soon close. In our view, none of these approved acquisitions have been for troubled or non-viable systems. As shown below, the twenty-one acquisitions have a combined ratemaking rate base of more than $1 billion, which is 2x the depreciated original cost of the acquired systems’ assets of approximately $538 million. Below is excerpted from testimony of Patrick M. Cicero, Consumer Advocate on Act 12 of 2016 (Section 1329 of the Public Utility Code) at the Senate Democratic Policy Committee Public Hearing on January 23, 2024: Source: www.pasenate.com/ policy-hearing-focuses-on- addressing-rising-water- wastewater-rates/ Resolution 1-24 RESOLVED , That PMAA support legislation repealing Act 12 of 2016, predatory pricing legislation (also erroneously known as Fair Market Value) of water and wastewater systems. Resolution 2-24 RESOLVED , That PMAA support legislation reforming Act 12 of 2016, including but not limited to, ratepayer approval prior to the sale of a municipal authority to any for-profit entity, a transparent acquisition process, revised public benefit determination, and Independent Fiscal Office analysis. Resolution 5-24 RESOLVED , That PMAA support efforts to preserve public ownership of infrastructure by educating the ratepayer and the public about the benefits of publicly owned infrastructure, including delivering affordable, safe, and quality ser- vice, and ensuring the community understands the vital importance of public ownership of its natural resource, a basic human right. PMAA 2024 A dopted R esolutions D ealing with the P rivatization I ssue