AB 1913, as introduced, Jones-Sawyer. Water rates.
Existing law requires the Public Utilities Commission, in establishing rates for water service, to consider separate charges for costs associated with customer service, facilities, variable operating costs, including fixed and variable costs associated with supplying the water, or other components of the water service provided to water users.
This bill would make a technical, nonsubstantive change to this provision of law.
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.
P2 1(b) The commission shall consider, and may authorize, a water
2corporation to assess a fee for future water
service, or a reservation
3charge for future water service, for persons or entities occupying
4or owning property within the service territory of the water
5corporation.
6(c) The commission shall consider, and may authorize, a water
7corporation to establish a balancing account, rate stabilization
8fund, or other contingency fund, the purpose of which shall be the
9long-term stabilization of water rates.
10(d) The commission shall consider, and may authorize, a water
11corporation to establish programs, including rate designs, for
12achieving conservation of water and recovering the cost of these
13programs through the rates.
14(e) In establishing rates for recovery of the costs of used and
15useful water plant, the commission may utilize a capital structure
16and payback methodology that shall maintain the reliability of
17water service,
shall minimize the long-term cost to ratepayers,
18shall provide equity between present and future ratepayers, and
19shall afford the utility an opportunity to earn a reasonable return
20on its used and useful investment, to attract capital for investment
21on reasonable terms and to ensure the financial integrity of the
22utility.
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