Water Use & Efficiency Strategic Goals
Fair Market Value Type Legislation in American Water Footprint
State
California
(1993)
Legislation
California Fair Market Value Legislation
Eligibility Requirements
Greater than 25 connections
Fair Market Determination
Highest price on date of valuation, a buyer would pay and seller would
accept, so long as the negotiated price falls below the appraised value,
unless sufficient justification exists to exceed appraised value
Illinois
Valuation of Water and Sewer Utilities
6,000 or fewer connections
•
Average of three appraisals
(2013)
Indiana
Offered Utility Statute
Less than 8,000 customers
•
(2015)
Iowa
(2018)
2018 House File 2307 - Act relating to the Sale or
Acquisition of Certain Utilities
Three appraisals are required; signed by two of the three constitutes a valid
appraisal.
FMV of $500,000 or more requires Greater of:
the board approval
(1) Average of two appraisals;
(2) The depreciated value of the capital assets;
(3) Amount to retire city's outstanding revenue and obligations
•
.
Industry standard asset valuation methodologies (depreciated original cost,
reproduction cost new less depreciation, etc.)
Average of two-utility valuation expert appraisals.
Kentucky
(2021)
Maryland
(2018)
Missouri
(2010)
Acquisition Adjustment Legislation
Not specified
Water and Sewage Disposal Companies -
Acquisition
Not Specified
New Jersey
(2015)
Pennsylvania
Fair Market Value Law - "MO (RSMO) 393.320"
Water Infrastructure Protection Act
Fewer than 8,000 customer
connections
•
Appraisal signed by two of three appraisers.
Population less than 270,000
•
Purchase price is within the range of any appraisals
Fair Market Value - Act 12 of 2016
Not Specified
•
Average of two-utility valuation expert appraisals
(2016)
Virginia
(2020)
West Virginia
Utility Transfers Act: Water and Sewer Utilities;
Asset Acquisitions
Not Specified
•
Average of three qualified and impartial appraisals
(2020)
Water and Wastewater Investment and
Infrastructure Improvement Act - WV SB 551
Not Specified
Asset valuation methodologies: (depreciated original cost, or reproduction
cost new less depreciation, or other industry standard utility asset valuation
methods up to but excluding fair market value)
AMERICAN WATER
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