Sec. 1. 35-A MRSA §6419 is enacted to read:

§6419.__Installation of sand filtration system

A water district that serves more than 45,000 customers shall install a sand filtration system to ensure the safety of the water supply.__A water district subject to this section may not raise consumer water rates in order to fund the purchase or installation of the sand filtration system.__In order to fund the purchase or installation of the sand filtration system, a water district subject to this section must sell any land that it owns that is not essential to its provision of water district services.

Sec. 2. Public Utilities Commission review. The Public Utilities Commission shall examine the particular issues presented by water districts that serve more than 45,000 customers, including, but not limited to, issues associated with water safety, water supply and competing responsibilities regarding the collection, distribution, treatment and disposal of water. In conducting its review, the commission shall consider whether it is in the best interest of the customers of those water districts and the people of the State to require the reorganization of such water districts into separate entities with management and oversight over separate functions. The Public Utilities Committee shall report its findings to the Joint Standing Committee on Utilities by January 10, 2006.

SUMMARY

This bill requires water districts that serve more than 45,000 customers to install a sand filtration system and prohibits such water districts from raising rates to consumers in order to pay for the filtration system. This bill prohibits a water district from raising its rates to fund the sand filtration system, and instead requires that such a water district sell land that is not essential to its provision of water district services. This bill also directs the Public Utilities Commission to review whether such water districts should be organized as separate entities performing separate functions such as water distribution and water treatment.