This bill proposes several updates to current statutes regarding municipal water providers that receive water from the Central Arizona Project (CAP). Specifically, it mandates that by April 15, 2026, these providers must estimate the costs associated with securing alternative water supplies if they lose 100% of their CAP water allocation. Additionally, they are required to notify customers about potential rate increases due to this loss, with the notice needing to follow the format used by public service corporations in rate cases. The notice must include details such as potential revenue increases for customer classes and estimated monthly bill increases for typical residential customers.

Furthermore, the bill outlines specific actions that municipal providers must take to disseminate this information, including mailing notices to customers, publishing them in local newspapers, and posting them on their websites. The provisions of this bill will be repealed after December 31, 2026, and it defines "municipal provider" in accordance with existing Arizona statutes. The bill is classified as an emergency measure, allowing it to take effect immediately upon passage.