HB 4100
municipal water providers; notice; rates
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- Passed Senate
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Bill overview
This bill requires municipal water providers in Arizona that receive water through Central Arizona Project contracts to estimate the cost of alternative water supplies and notify their customers about potential rate increases if their Central Arizona Project water is unavailable. The notice must include details about potential revenue increases, monthly bill impacts, and current versus potential costs. The requirements are set to expire on December 31, 2026.
Key provisions
- Municipal providers receiving Central Arizona Project water must estimate the cost of alternative water supplies.
- Providers must notify customers of potential rate increases due to lost Central Arizona Project water.
- Notices must include information on revenue increases, monthly bill impacts, and current/potential costs.
- Notices must be mailed, published in a local newspaper, and posted on the provider’s website.
- The law defines ‘municipal provider’ using a reference to Arizona Revised Statutes.
- The bill establishes a deadline of April 15, 2026, for providers to estimate costs and provide notice.
Who is affected
- Municipal water providers
- Customers of municipal water providers
- Central Arizona Project water users
Notable changes
- Requires specific notice to customers regarding potential rate increases.
- Establishes a deadline for providers to fulfill notice requirements.
Sponsors
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Primary sponsor
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| REFERENCE TITLE: municipal water providers; notice; rates |
| State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026 |
| HB 4100 |
| Introduced by Representative Kolodin |
AN ACT
PROVIDING for notice of a potential water rate increase.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Municipal providers; central Arizona project subcontracts; rates; notice; delayed repeal; definitions
A. On or before April 15, 2026, each municipal provider that receives or has an allocation of water from the central Arizona project pursuant to a subcontract with the central Arizona water conservation district organized under title 48, chapter 22, Arizona Revised Statutes, or that receives or has an allocation of water from the central Arizona project pursuant to a lease with another person or subcontract with the central Arizona water conservation district shall do both of the following:
1. Estimate the total cost per acre-foot of securing, treating and delivering an alternative water supply if one hundred percent of the water that is acquired or leased directly or indirectly from the central Arizona project is no longer available.
2. Provide public notice to each customer of the potential increase in rates resulting from losing one hundred percent of the water that is acquired or leased directly or indirectly from the central Arizona project.� The notice shall be in substantially the same form and manner as the public notices required of public service corporations in rate cases by the corporation commission and shall include the following information:
(a) The potential revenue increase levels for each customer class, in percent.
(b) The potential monthly bill increase for a typical residential water customer that are served by a five-eighths inch meter with an average monthly usage.
(c) The typical current bill, potential bill, potential dollar increase and potential percentage increase.
B. On or before April 15, 2026, a municipal provider that is subject to this section shall do all of the following:
1. Mail to each of its customers in each affected service area a copy of the notice required pursuant to this section as a bill insert or as a separate mailing.
2. Cause a copy of the notice required pursuant to this section to be published at least once in a newspaper of general circulation in each affected service area.
3. Post a copy of the notice required pursuant to this section in a prominent location on its website.
C. This section is repealed from and after December 31, 2026.
D. For the purposes of this section, "municipal provider" has the same meaning prescribed in section 45-561, Arizona Revised Statutes.
Sec. 2. Emergency
This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.