SB 473: Water corporations: demand elasticity: rates and surcharges.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The California Constitution and the Public Utilities Act vest the Public Utilities Commission with regulatory authority over electrical corporations and water corporations. The act requires the commission to ensure that errors in estimates of demand elasticity or sales do not result in material overcollections or undercollections of electrical corporations.

This bill would additionally require the commission to ensure that those errors do not result in material overcollections or undercollections of water corporations.

Existing law requires the commission, in establishing rates for water service, to consider separate charges for costs associated with customer service, facilities, variable operating costs, or other components of the water service provided to water users. Existing law requires the commission to consider, and authorizes the commission to authorize, a water corporation to establish programs, including rate designs, for achieving conservation of water and recovering the cost of these programs through the rates, as provided.

This bill would, for purposes of the above-described rates for water service, require that any changes to rates or implementation of surcharges in accordance with the above-described requirement on the commission to ensure errors in estimates of demand elasticity or sales do not result in material overcollections or undercollections of water corporations do not result in revenues above those approved by the commission.

Under existing law, a violation of the act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the above requirements would be part of the act and a violation of a commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 29, 2025August 29 hearing: Held in committee and under submission.
2. August 29, 2025Coauthors revised.
3. August 20, 2025August 20 set for first hearing. Placed on APPR. suspense file.
4. July 17, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (July 16). Re-referred to Com. on APPR.
5. June 9, 2025Referred to Com. on U. & E.
6. June 4, 2025In Assembly. Read first time. Held at Desk.
7. June 3, 2025Read third time. Passed. (Ayes 37. Noes 0. Page 1443.) Ordered to the Assembly.
8. May 23, 2025Read second time. Ordered to third reading.
9. May 23, 2025From committee: Do pass. (Ayes 5. Noes 0. Page 1201.) (May 23).
10. May 16, 2025Set for hearing May 23.
11. May 5, 2025May 5 hearing: Placed on APPR. suspense file.
12. April 25, 2025Set for hearing May 5.