Water corporations: demand elasticity: rates and surcharges.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill aims to ensure that water corporations accurately estimate demand and sales, preventing overcollections or undercollections of revenue. It requires the California Public Utilities Commission to address errors in demand elasticity estimates and sales projections, similar to how it handles electricity. The bill also seeks to incentivize water conservation by allowing water corporations to decouple revenues from sales, ensuring they don't earn excessive profits from increased sales.
Key provisions
- Requires the Public Utilities Commission to address errors in demand elasticity estimates for water corporations.
- Mandates a decoupling mechanism to separate water corporation revenues from water sales.
- Prohibits revenues exceeding those approved by the commission for rate changes and surcharges.
- Addresses financial disincentives for water suppliers to encourage water conservation.
- Establishes a framework for recovering the costs of water conservation programs through rates.
- Specifies considerations for rate design and balancing accounts.
- Aligns with existing regulations for electricity corporations regarding revenue accuracy.
- Creates a new crime related to violations of commission actions implementing the bill’s requirements.
Who is affected
- Water corporations
- California Public Utilities Commission
- Water consumers
Bill text
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