Simplified regulatory treatment for small or nonprofit water companies.

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(1) The commission, with due consideration to public interest, quality of service, financial condition, and just and reasonable rates, shall grant regulatory treatment that is less comprehensive than otherwise provided for under this article 3 to small, privately owned water companies that serve fewer than one thousand five hundred customers. The commission, when considering policy statements and rules, shall balance reasonable regulatory oversight with the cost of regulation in relation to the benefit derived from the regulation.

(2) (a) Except as otherwise provided in subsection (2)(b) of this section, a water company registered as a nonprofit organization under section 501 (c) of the federal "Internal Revenue Code of 1986", as amended, 26 U.S.C. sec. 501 (c), is exempt from regulation under the "Public Utilities Law", articles 1 to 7 of this title 40.

(b) Notwithstanding subsection (2)(a) of this section, all rates, charges, and terms and conditions of service between a water company described in subsection (2)(a) of this section and its customers must be just and reasonable. The commission shall resolve any complaint alleging a violation of this subsection (2)(b) in accordance with articles 6 and 7 of this title 40 if the complaint is signed by:

(I) The mayor, the president of the board of trustees, or a majority of the council, commission, or other governing body of an affected city, county, city and county, or town; (II) The chief executive officer of an affected public utility; or (III) The lesser of:

  1. At least twenty-five customers or prospective customers of the water company complained of; or

  2. At least twenty-five percent of the current customers of the water company complained of.

Source: L. 2001: Entire section added, p. 1469, § 1, effective August 8. L. 2018: Entire section amended, (SB 18-134), ch. 91, p. 729, § 1, effective August 8.


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