BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 975|
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THIRD READING
Bill No: AB 975
Author: Fong (D)
Amended: 7/15/09 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 8-3, 7/7/09
AYES: Padilla, Calderon, Corbett, Kehoe, Lowenthal,
Simitian, Wiggins, Wright
NOES: Benoit, Cox, Strickland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 54-24, 5/28/09 - See last page for vote
SUBJECT : Water corporations: water meters
SOURCE : Sierra Club California
DIGEST : This bill requires water corporations regulated
by the Public Utilities Commission (PUC) to install water
meters on new service connections and on unmetered
connections.
ANALYSIS : Existing law provides that the PUC may only
require the installation of water meters if it determines
that the meters will be cost effective, will result in a
significant reduction in water consumption, and will not
impose an unreasonable financial burden on the customer.
This bill deletes that provision.
CONTINUED
AB 975
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This bill requires water corporations serving 500 or more
customers to install water meters on all new service
connections as of January 1, 2010 and on all customers by
January 1, 2025.
For water corporations serving less than 500 customers, the
PUC may require the installation of water meters if it
finds that the meters will be cost effective, the meters
will reduce water consumption, or that the cost of metering
will not impose an unreasonable financial burden on the
customer.
Background
Charging for utility service by the volume consumed is
standard practice, except where the incremental cost of
service is extremely low (e.g. telephone calls). A utility
charging a flat price for an unlimited amount of
electricity or natural gas service would quickly go
bankrupt. Most water service is metered and charged based
primarily on the volume consumed.
Water utilities serving more than 3000 connections, whether
regulated by the PUC or not, are required to install meters
and charge for water by volume on all of their customers by
2025.
The PUC regulates 140 water utilities providing potable and
irrigation water to more than six million Californians.
Total revenue of these utilities is about $1 billion
annually. In 2005 the PUC articulated its policy
objectives in regulating water utilities in a document
called its "Water Action Plan". The plan calls for
promoting metered water service to encourage conservation
and encouraging increasing conservation and efficiency rate
designs. According to the PUC about 15 percent of
California water utilities have non-metered rates.
According to the PUC, this bill will affect 24 water
utilities, each serving between 500-1999 customers. Larger
water utilities are required to install water meters
pursuant to existing law.
AB 975
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 6/30/09 per Senate Energy, Utilities
and Communications Committee analysis)
Sierra Club California (source)
California Public Utilities Commission
California Water Association
East Bay Municipal Utility District
Environmental Justice Coalition for Water
Friends of the River
GreenPlumbers USA
Natural Resources Defense Council
Planning and Conservation League
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Beall, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Coto, Davis, De La Torre, De Leon, Duvall,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Furutani, Galgiani, Hall, Hayashi, Hernandez, Hill,
Huber, Huffman, Jones, Krekorian, Lieu, Bonnie Lowenthal,
Ma, Mendoza, Monning, Nava, John A. Perez, V. Manuel
Perez, Portantino, Price, Ruskin, Salas, Saldana,
Skinner, Smyth, Solorio, Swanson, Torlakson, Torrico,
Yamada, Bass
NOES: Adams, Anderson, Bill Berryhill, Tom Berryhill,
Blakeslee, Conway, Cook, DeVore, Fuller, Gaines, Garrick,
Gilmore, Hagman, Harkey, Jeffries, Knight, Logue, Miller,
Niello, Nielsen, Silva, Audra Strickland, Tran, Villines
NO VOTE RECORDED: Nestande, Torres
DLW:nl 8/19/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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