WashingtonWater regulators must weigh project costs and bill impacts in rates
Water regulators must weigh project funding, approved plans, customer notice, and rate effects when setting water company rates; companies may propose multiyear plans starting in 2027.
What it does
When setting water rates, the commission must weigh outside funding, approved water plans, customer notice, and ways to avoid sudden rate increases.
Before a water system changes owners, nearby public agencies and water systems must be notified, and customers must receive an estimate of future projects and rate changes.
Water companies may propose rate plans covering several years in general rate cases filed starting in 2027; the commission decides whether to approve them.
Argument forCustomers may get clearer notice of planned water projects and steadier bills as regulators weigh project costs and rate changes.
Argument againstOther customers could pay more if regulators approve low-income discounts or special rates funded through a multiyear plan.
More detail
The utilities commission must adopt rules for how water companies’ project costs count in rates. These rules apply when the commission sets rates for water companies under its authority. The rules must account for outside funding and require companies to follow health department-approved plans, with a waiver process for emergency work needed to protect health and safety. The commission must consider customer notice, project effects on rates, ways to avoid sudden rate changes, and the system’s size and capabilities.
Water system owners must notify nearby public agencies and systems before a change of ownership and tell customers about the acquisition. The notice rules cover changes in ownership of public water systems and changes in controlling ownership of water companies. Customer notice may be mailed or posted publicly. For a water company under commission oversight, the commission must verify that required notices were given before approving a change in controlling ownership. Customers must receive notice at least 90 days before the acquisition.
The commission must allow water companies to propose multiyear rate plans in general rate cases. This applies to water companies filing general rate cases. After a formal proceeding, the commission may approve, change, or reject a plan; rates must meet the standards for other rate filings. The commission may approve low-income bill help or special rates funded by collecting up to five percent of the approved yearly revenue requirement from ratepayers. For an approved plan, the commission must set rates for each year and may order refunds if expected property is not in service by the rate effective date. The option applies to general rate cases filed beginning January 1, 2027. For an approved plan, rates are set separately for each plan year.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 28Effective date 6/11/2026.Latest
- Mar 28Chapter 237, 2026 Laws.Major
- Mar 28Governor Bob Ferguson signed.Became Law
- Mar 12Delivered to Governor.To Governor
- Mar 12President signed.Major
- Mar 12Speaker signed.Passed Senate
- Mar 11Passed final passage; yeas, 94; nays, 2; absent, 0; excused, 2.Passed House
- Vote recorded Final Passage as Amended by the Senate (#33). Result: pass.Lower
- Mar 11House concurred in Senate amendments.
- Mar 3Third reading, passed; yeas, 49; nays, 0; absent, 0; excused, 0.Minor
- Vote recorded 3rd Reading & Final Passage as Amended by the Senate (#29). Result: pass.Upper
- Mar 3Rules suspended. Placed on Third Reading.Minor
- Mar 3Committee amendment(s) adopted with no other amendments.
- Mar 3Placed on second reading by Rules Committee.Minor
- Mar 2Passed to Rules Committee for second reading.
- Mar 2WM - Majority; do pass with amendment(s).Minor
- Mar 2Executive action taken in the Senate Committee on Ways & Means at 10:30 AM.
- Feb 26Public hearing in the Senate Committee on Ways & Means at 1:30 PM.
- Feb 25Referred to Ways & Means.Minor
- Feb 24And refer to Ways & Means.Minor
- Feb 24ENET - Majority; do pass with amendment(s).Minor
- Feb 24Public hearing and executive action taken in the Senate Committee on Environment, Energy & Technology at 1:30 PM.
- Feb 20Public hearing in the Senate Committee on Environment, Energy & Technology at 10:30 AM.
- Feb 18First reading, referred to Environment, Energy & Technology.Minor
- Feb 16Third reading, passed; yeas, 91; nays, 1; absent, 0; excused, 6.Minor
- Vote recorded 3rd Reading & Final Passage (#9). Result: pass.Lower
- Feb 16Rules suspended. Placed on Third Reading.Minor
- Feb 162nd substitute bill substituted (APP 26).Major
- Feb 14Rules Committee relieved of further consideration. Placed on second reading.Minor
- Feb 9Referred to Rules 2 Review.Minor
- Feb 9APP - Majority; 2nd substitute bill be substituted, do pass.Major
- Feb 9Executive action taken in the House Committee on Appropriations at 10:30 AM.
- Feb 7Public hearing in the House Committee on Appropriations at 9:00 AM.
- Jan 12By resolution, reintroduced and retained in present status.
- 2025
- Feb 21Referred to Appropriations.Minor
- Feb 20ENVI - Majority; 1st substitute bill be substituted, do pass.Major
- Feb 20Executive action taken in the House Committee on Environment & Energy at 8:00 AM.
- Feb 13Public hearing in the House Committee on Environment & Energy at 8:00 AM.
- Feb 10First reading, referred to Environment & Energy.Introduced
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