Joint powers agreements: water corporations.

Assembly Member Blanca Rubio's proposal to modify California's joint powers agreement framework would permit water corporations to participate in insurance pooling arrangements alongside mutual water companies and public agencies, while establishing new oversight requirements to protect ratepayers.

The legislation creates specific conditions for water corporation participation in joint powers agreements (JPAs) for insurance purposes. Water corporations could only join JPAs that include mutual water companies and must demonstrate to the Public Utilities Commission that the arrangement provides greater customer benefits than existing insurance policies. The JPAs must maintain 100% reinsurance coverage and cannot create joint liability or financial obligations for participating entities.

To ensure accountability, participating water corporations must submit annual filings to both the Commission and the JPA documenting insurance cost comparisons and explaining how any savings benefit customers rather than investors. The JPAs must dedicate revenue to operating costs and member support services like technical assistance and safety engineering. The legislation prohibits JPAs that include water corporations from joining with other agencies or expanding beyond insurance-related activities.

These changes build upon existing law that allows mutual water companies and public agencies to form insurance-pooling JPAs, while adding new consumer protection provisions specific to regulated water corporations. The Commission's expanded oversight role aims to verify that ratepayer interests are prioritized when water corporations participate in these risk-sharing arrangements.