Study committee continuing to look at private water system regulation

(The Center Square) – A Georgia House of Representatives study committee will hold another meeting this week on the possible regulation of the state’s private water systems.

Rep. Trey Rhodes, R-Greensboro, sponsored a bill during the 2024 session of the General Assembly that would give the Public Service Commission the authority to oversee private water systems.

Residents have told the committee they are sometimes charged high tap fees.

Jacob Fried of Eaton told the committee at its Sept. 19 meeting that he was charged $50,000 for the water and sewer tap when opening his car wash three and a half years ago. T

But regulating the private water systems may not make the rates decrease, the committee heard in testimony.

“A regulated model is where you determine what is fair, what is reasonable and what is prudent in terms of investments and that’s where you also guarantee a private company a rate of return that is fair,” Public Service Commissioner Jason Shaw told the committee. “And in some cases when you take depreciation and taxes and everything – investments – that guaranteed rate of return that is the fair rate of return can cause rates to go up.

The committee meets at 9:30 a.m. Wednesday and can be watched via livestream.

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