City-owned and operated utilities pay for annual outside audits that state regulators can arrange after D or F health ratings or certain local requests.
State regulators can arrange annual outside audits of city-owned and operated utilities after D or F health ratings, a mayor's request, or a supermajority request from aldermen or council members. Utilities pay.
The Public Service Commission can hire outside firms to conduct annual audits. The audit authority covers public utilities that cities both own and operate. An audit requires a D or F Department of Health rating under House Bill 1632 of 2026, a mayor's request, or a request from a supermajority of the city's aldermen or city council. A supermajority means more votes than a simple majority; the law does not specify the exact threshold here. The utility pays for its audit. Violations of the audit rules carry a civil fine set by the Public Service Commission. The law took effect July 1, 2026, and excludes actions or proceedings already pending that day. Audit findings must reach the Public Service Commission and Public Utilities Staff by December 1 each year.
No hearings or votes scheduled.