SB-473
Natural Resources & Water

Water corporations: demand elasticity: rates and surcharges.

Engrossed
CA
2025-2026 Regular Session
0
0
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

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

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