SB 1422, as introduced, Glazer. Water corporations: rate regulation.
Under existing law, the Public Utilities Commission is vested with regulatory authority over public utilities and other specified entities, including water corporations. Existing law authorizes the Public Utilities Commission, in establishing rates for water service, to establish separate charges for costs associated with customer service, facilities, and fixed and variable operating costs, as specified.
This bill would make nonsubstantive changes to these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 727.5 of the Public Utilities Code is
2amended to read:
(a) begin deleteIn end deletebegin insertThe commission, in end insertestablishing rates for water
4service,begin delete the commissionend delete shall consider, and may establish, separate
5charges for costs associated with customer service, facilities,
6variable operating costs, including fixed and variable costs
7associated with supplying the water, or other components of the
8water service provided to water users.
9(b) The commission shall consider, and may authorize, a water
10corporation to assess a fee for future water service, or a reservation
P2 1charge for future water service, for persons or
entities occupying
2or owning property within the service territory of the water
3corporation.
4(c) The commission shall consider, and may authorize, a water
5corporation to establish a balancing account, rate stabilization
6fund, or other contingency fund, the purpose of which shall be the
7long-term stabilization of water rates.
8(d) The commission shall consider, and may authorize, a water
9corporation to establish programs, including rate designs, for
10achieving conservation of water and recovering the cost of these
11programs through the rates.
12(e) In establishing rates for recovery of the costs of used and
13useful water plant, the commission may utilize a capital structure
14and payback methodology that shall maintain the reliability of
15water service, shall minimize the long-term cost to ratepayers,
16shall provide equity between present and future ratepayers, and
17shall afford the utility an opportunity to earn a reasonable return
18on
its used and useful investment, to attract capital for investment
19on reasonable terms and to ensure the financial integrity of the
20utility.
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