Oregon's Public Utility Commission (PUC) is set to gain new regulatory powers aimed at addressing the challenges faced by small private water companies. During a recent meeting of the House Committee on Agriculture, Land Use, Natural Resources, and Water, officials discussed the introduction of Senate Bill 845, which would allow the PUC to compel the sale of mismanaged water companies as a last resort.

The bill comes in response to a troubling incident involving a small water provider in the Bend area, where inadequate service led to severe water quality issues, including a boil notice for residents. The PUC had previously struggled to enforce compliance with the owner, who failed to address ongoing problems despite multiple attempts at intervention. This situation highlighted the limitations of the current regulatory framework, which only applies to private companies, leaving municipal providers outside the PUC's jurisdiction.

Senate Bill 845 establishes a rigorous process for the PUC to follow before ordering a sale, ensuring that the owner has ample opportunity to rectify issues. The PUC must first attempt various solutions, such as appointing an independent operator or exploring municipal interest in acquiring the company. If these efforts fail, the PUC can initiate a sale, but the process still requires approval from local courts.

While the PUC hopes to never utilize this authority, the legislation aims to provide a safety net for communities reliant on small water providers. The bill does not extend to municipal systems, which remain under local government control, and it does not compel any entity to purchase a mismanaged company.

The committee's discussions also touched on the potential implications for special water districts and the need for clarity in the legislation to avoid unforeseen consequences. As the PUC prepares to implement these new powers, stakeholders are encouraged to engage in ongoing dialogue to ensure effective oversight and service delivery for Oregon's water systems.