Bill > HB1906

This bill aims to increase transparency and consumer protection in water system rates by establishing more structured guidelines for water utility rate changes. The bill recognizes that water systems are natural monopolies and that the Utilities and Transportation Commission (UTC) lacks specific standards for reviewing and approving rate changes. Key provisions include requiring water companies to provide more comprehensive planning materials about capital investments, mandating that the UTC adopt rules for rate-setting that include a return on equity ceiling of seven percent, require detailed justification for rate increases, account for external funding sources, and consider the impact of capital projects on consumer rates. The bill also introduces requirements for water companies to provide notice to consumers about planned investments, promotes "rate smoothing" to avoid sudden rate increases, and requires that capital improvement costs be included in water system plans. Additionally, the bill modifies existing regulations around water system ownership transfers, requiring notification to local counties, water districts, and customers, and giving customers a right of first refusal when a water system is being sold. The overall intent is to provide more oversight, transparency, and consumer protections in water system rate-setting and ownership processes.

Agriculture and Natural Resources, Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1906&Year=2025&Initiative=false