Cutrona to Introduce Legislation Reducing Excessive Utility Costs for Township Residents

State Senator Al Cutrona (R-Canfield) plans to introduce legislation that creates a process for withholding local government funds and state water and sewer assistance to local governments that engage in charging higher water and sewer rates to customers outside that government's jurisdiction.

“Placing unfair burdens on residents and businesses in neighboring townships just to have access to water is a detriment to our communities," said Senator Cutrona. “This legislation will ensure that citizens and business owners across The Valley and Eastern Ohio receive fair treatment. I look forward to presenting this legislation before my colleagues so that, when it comes to charging water and sewer rates, local governments are held to proper standards.” 

This legislation creates a declaratory judgment process through which an affected subdivision may seek a judicial determination in the circumstance in which a municipal corporation is engaging in improper extraterritorial water or sewer practices. A municipal corporation may be found non-compliant if it engages in either of the following practices, except as authorized under contracts currently in effect:

• Unjustified Higher Rates: Charging higher rates for extraterritorial customers receiving similar services, where the rate differential is not justified pursuant to generally accepted municipal water or sewer industry pricing practices, subject to certain limited exceptions.
• Excessive Direct Payments: Requiring an extraterritorial subdivision to make direct payments to the municipal corporation as a condition of providing water or sewer services, where those payments exceed the actual costs related to extending such services.

Senator Cutrona has made the bill available for members of the Senate to co-sponsor and plans to introduce the legislation on Monday, March 9th.

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