The bill aims to enhance transparency and consumer protection in water system rates in Washington State. It establishes a new section that emphasizes the importance of public water systems and the need for regulatory oversight by the utilities and transportation commission, which currently lacks specific statutory standards for reviewing water rate changes. The bill mandates that public water systems notify relevant local entities and customers prior to any change in ownership, providing a good faith estimate of future capital improvements and rate changes. Additionally, it encourages the consolidation of failing water systems into well-managed public systems to improve efficiency and protect public health.

Amendments to existing laws include requirements for the commission to adopt rules that incorporate allowable costs of capital in rate determinations, consider consumer notice of planned capital projects, and promote rate stability. The bill also introduces a multiyear rate plan option for water companies, allowing them to propose rates for multiple years while ensuring that the commission maintains oversight to protect consumer interests. Overall, the legislation seeks to create a more structured and transparent process for setting water rates, ultimately benefiting consumers and ensuring the sustainability of water systems.

Statutes affected:
Original Bill: 43.20.050, 43.20.260, 80.12.020, 36.96.010
Substitute Bill: 43.20.050, 43.20.260, 80.12.020, 36.96.010
Second substitute: 70A.125.060, 80.12.020, 36.96.010
Bill as passed Legislature: 70A.125.060, 80.12.020, 36.96.010
Session law: 70A.125.060, 80.12.020, 36.96.010