The bill aims to enhance transparency and consumer protection in water system rates in Washington State. It introduces a new section that emphasizes the importance of water systems as critical utilities and acknowledges the lack of specific statutory standards for the Utilities and Transportation Commission (UTC) in reviewing water rate changes. The bill mandates that water companies provide detailed planning materials and information regarding capital investments to the UTC, ensuring that proposed rate changes are just, fair, and reasonable. Additionally, it seeks to improve consumer notice regarding planned investments and their potential impacts on rates, thereby preventing sudden and significant rate increases.

Key amendments include the requirement for the UTC to adopt rules that establish a structured approach to determining allowable costs of capital in rate-setting, including a ceiling on return rates and a detailed justification for any proposed increases. The bill also stipulates that public water systems must submit comprehensive plans that include capital improvement projects for at least the next ten years and mandates that water companies notify customers of any changes in controlling interest, providing them with a right of first refusal to purchase the water system. Overall, the legislation aims to create a more regulated and transparent environment for water system operations and rate-setting, ultimately benefiting consumers.

Statutes affected:
Original Bill: 43.20.050, 43.20.260, 80.12.020, 36.96.010