Private For-Profit Utility Sample Clauses

Private For-Profit Utility. Transportation Corporation A private utility can own and operate both wastewater and water assets in New York, but the control mechanism differ somewhat. The New York Public Service Commission regulates the financial and service aspects of water utilities but private wastewater entities require local control under the Transportation Corporation rules. A private utility is the most independent form of ownership wherein the municipality does not have any financial or physical obligations for the asset management and thus it is the option with the lowest public risk. Private utilities are financed by private equity and a combination of private and public debt financing. Private ownership of wastewater facilities by a for-profit utility in New York State requires franchise approval and rate regulation by the “Local Governing Body” (LGB). This is somewhat unique by comparison to most states that regulate both for-profit wastewater utilities and water utilities at a state level. In New York State, water utilities are regulated at the state level, but wastewater utilities are regulated at the local or county level. All approvals for private wastewater utility franchises and pricing are the responsibility of the LGB. New York State law defining the conditions under which private for-profit wastewater utilities are managed is provided in Article 10 of the New York State Transportation Corporation Law. This article defines the incorporation, approval, guaranty and duty requirements incumbent upon both companies seeking incorporation, as a “sewage-works Corporation”, and the bodies that hold regulatory authority upon them. In order to provide sewer service, a corporation must ultimately be incorporated as a “Sewage-Works Corporation”. Two agencies exercise influence over the incorporation approval: The Local Governing Body and the Department of Health that holds jurisdiction over the subject municipality. There are considerable powers assigned to the Local Governing Body through Article 10 (copy attached Chapter 7, Section 4).
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