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    SB-473
    Natural Resources & Water

    Water corporations: demand elasticity: rates and surcharges.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Requires water utilities to separate their revenue from water sales to encourage conservation efforts.
    • Authorizes water companies to create rate stabilization funds for long-term price stability.
    • Mandates that changes in water rates cannot exceed revenue levels approved by state regulators.
    • Establishes criminal penalties for utilities that violate the new revenue requirements.

    Summary

    Senator Padilla's proposal to modify California's water utility regulations aims to decouple water corporation revenues from sales volume, mirroring existing practices for electrical utilities. The legislation would require water corporations serving more than 10,000 connections to implement revenue adjustment mechanisms through their triennial rate cases, preventing both overcollection and undercollection of authorized revenue when water consumption patterns change.

    The bill directs the California Public Utilities Commission to authorize water corporations to establish rate stabilization funds and balancing accounts for long-term rate stability. These mechanisms would allow utilities to recover costs from conservation programs while maintaining approved revenue levels, addressing the financial challenges water providers face when consumption decreases. The commission must ensure that any rate changes or surcharges do not generate revenues beyond authorized amounts.

    Under the legislation's findings, California faces increasingly frequent and severe droughts due to climate change, making water conservation essential for supply reliability. The bill acknowledges that water utilities' substantial fixed costs can create financial disincentives to promote conservation, as reduced consumption directly impacts cost recovery. By separating revenue from sales volume, the proposal aims to remove this barrier while maintaining utility financial stability.

    Key Dates

    Next Step
    Referred to the Assembly Standing Committee on Utilities and Energy
    Next Step
    Assembly Committee
    Referred to the Assembly Standing Committee on Utilities and Energy
    Hearing has not been scheduled yet
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Senate 3rd Reading SB473 Padilla
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Do pass
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Placed on suspense file
    Senate Energy, Utilities and Communications Hearing
    Senate Committee
    Senate Energy, Utilities and Communications Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Contacts

    Profile
    Jacqui IrwinD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Phillip ChenR
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tasha Boerner HorvathD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Cottie Petrie-NorrisD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    0 of 19 row(s) selected.
    Page 1 of 4
    Select All Legislators
    Profile
    Jacqui IrwinD
    Assemblymember
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Committee Member
    Profile
    Phillip ChenR
    Assemblymember
    Committee Member
    Profile
    Tasha Boerner HorvathD
    Assemblymember
    Committee Member
    Profile
    Cottie Petrie-NorrisD
    Assemblymember
    Committee Member
    Profile
    Lisa CalderonD
    Assemblymember
    Committee Member
    Profile
    Gregg HartD
    Assemblymember
    Committee Member
    Profile
    Joe PattersonR
    Assemblymember
    Committee Member
    Profile
    Diane PapanD
    Assemblymember
    Committee Member
    Profile
    Pilar SchiavoD
    Assemblymember
    Committee Member
    Profile
    Tri TaR
    Assemblymember
    Committee Member
    Profile
    Rick ZburD
    Assemblymember
    Committee Member
    Profile
    Steve PadillaD
    Senator
    Bill Author
    Profile
    Greg WallisR
    Assemblymember
    Committee Member
    Profile
    Mark GonzalezD
    Assemblymember
    Committee Member
    Profile
    John HarabedianD
    Assemblymember
    Committee Member
    Profile
    Chris RogersD
    Assemblymember
    Committee Member
    Profile
    Nick SchultzD
    Assemblymember
    Committee Member
    Profile
    David TangipaR
    Assemblymember
    Committee Member

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Steve Padilla
    Steve PadillaD
    California State Senator
    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

    Latest Voting History

    View History
    June 3, 2025
    PASS
    Senate Floor
    Vote on Senate Floor
    AyesNoesNVRTotalResult
    370340PASS

    Key Takeaways

    • Requires water utilities to separate their revenue from water sales to encourage conservation efforts.
    • Authorizes water companies to create rate stabilization funds for long-term price stability.
    • Mandates that changes in water rates cannot exceed revenue levels approved by state regulators.
    • Establishes criminal penalties for utilities that violate the new revenue requirements.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Steve Padilla
    Steve PadillaD
    California State Senator

    Summary

    Senator Padilla's proposal to modify California's water utility regulations aims to decouple water corporation revenues from sales volume, mirroring existing practices for electrical utilities. The legislation would require water corporations serving more than 10,000 connections to implement revenue adjustment mechanisms through their triennial rate cases, preventing both overcollection and undercollection of authorized revenue when water consumption patterns change.

    The bill directs the California Public Utilities Commission to authorize water corporations to establish rate stabilization funds and balancing accounts for long-term rate stability. These mechanisms would allow utilities to recover costs from conservation programs while maintaining approved revenue levels, addressing the financial challenges water providers face when consumption decreases. The commission must ensure that any rate changes or surcharges do not generate revenues beyond authorized amounts.

    Under the legislation's findings, California faces increasingly frequent and severe droughts due to climate change, making water conservation essential for supply reliability. The bill acknowledges that water utilities' substantial fixed costs can create financial disincentives to promote conservation, as reduced consumption directly impacts cost recovery. By separating revenue from sales volume, the proposal aims to remove this barrier while maintaining utility financial stability.

    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

    Key Dates

    Next Step
    Referred to the Assembly Standing Committee on Utilities and Energy
    Next Step
    Assembly Committee
    Referred to the Assembly Standing Committee on Utilities and Energy
    Hearing has not been scheduled yet
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Senate 3rd Reading SB473 Padilla
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Do pass
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Placed on suspense file
    Senate Energy, Utilities and Communications Hearing
    Senate Committee
    Senate Energy, Utilities and Communications Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Latest Voting History

    View History
    June 3, 2025
    PASS
    Senate Floor
    Vote on Senate Floor
    AyesNoesNVRTotalResult
    370340PASS

    Contacts

    Profile
    Jacqui IrwinD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Phillip ChenR
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tasha Boerner HorvathD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Cottie Petrie-NorrisD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    0 of 19 row(s) selected.
    Page 1 of 4
    Select All Legislators
    Profile
    Jacqui IrwinD
    Assemblymember
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Committee Member
    Profile
    Phillip ChenR
    Assemblymember
    Committee Member
    Profile
    Tasha Boerner HorvathD
    Assemblymember
    Committee Member
    Profile
    Cottie Petrie-NorrisD
    Assemblymember
    Committee Member
    Profile
    Lisa CalderonD
    Assemblymember
    Committee Member
    Profile
    Gregg HartD
    Assemblymember
    Committee Member
    Profile
    Joe PattersonR
    Assemblymember
    Committee Member
    Profile
    Diane PapanD
    Assemblymember
    Committee Member
    Profile
    Pilar SchiavoD
    Assemblymember
    Committee Member
    Profile
    Tri TaR
    Assemblymember
    Committee Member
    Profile
    Rick ZburD
    Assemblymember
    Committee Member
    Profile
    Steve PadillaD
    Senator
    Bill Author
    Profile
    Greg WallisR
    Assemblymember
    Committee Member
    Profile
    Mark GonzalezD
    Assemblymember
    Committee Member
    Profile
    John HarabedianD
    Assemblymember
    Committee Member
    Profile
    Chris RogersD
    Assemblymember
    Committee Member
    Profile
    Nick SchultzD
    Assemblymember
    Committee Member
    Profile
    David TangipaR
    Assemblymember
    Committee Member