Municipalities Monetizing Water, Wastewater Assets Under FMV Legislation
On 1 November 2017, the Pennsylvania Public Utility Commission unanimously approved the US$159 million sale of the wastewater system owned by the Municipal Authority of the City of McKeesport to Pennsylvania American Water (PAWC)
This transaction represents the largest acquisition to be executed after a 2016 amendment allowing municipalities and public utilities in Pennsylvania to negotiate transactions based on fair market valuation. To date, six states have adopted FMV legislation, although regulations vary from state- to-state.
In this Research Note, Bluefield water experts analyze the impact of fair market value legislation on wastewater assets and IOU strategies.