Bill > SB473

This bill addresses water conservation and rate-setting for water corporations in California by expanding existing regulations to better align water utility revenues with water conservation efforts. The bill requires the California Public Utilities Commission (CPUC) to ensure that errors in demand estimates do not result in material over- or under-collection of revenues for water corporations, similar to existing regulations for electrical corporations. It specifically allows water corporations with over 10,000 service connections to implement a "decoupling mechanism" that separates their revenues from water sales, which helps remove financial disincentives for promoting water conservation. The bill recognizes California's ongoing drought challenges and aims to encourage water conservation by allowing utilities to establish rate designs and mechanisms that do not penalize them financially when customers use less water. Additionally, the bill requires that any changes to water service rates or surcharges cannot result in revenues exceeding those previously approved by the commission. The legislation is part of a broader effort to address water supply reliability in the context of climate change and frequent drought conditions, and it seeks to create financial frameworks that support, rather than discourage, water conservation efforts.

Budget and Finance, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB473