HB 710 Summary

• Permits water and sewer utilities to adjust rates to reflect changes in costs imposed by third-party suppliers of purchased water or sewer service, including applicable taxes and fees.

• Requires utilities seeking rate adjustments under this provision to file a verified petition with the Public Utilities Commission, which must issue an order within 60 days (extendable to 90 days for good cause).

• Authorizes the Public Utilities Commission to approve a rate adjustment mechanism allowing water and sewer utilities to recover incremental depreciation and capital costs through a system improvement charge.

• Defines eligible water system improvements including distribution mains, service lines, meters, main extensions for regional water supply, and equipment to comply with drinking water standards.

• Defines eligible sewer system improvements including collection main extensions, inflow/infiltration reduction projects, facility relocation costs, and mechanical equipment replacements; caps cumulative system improvement charges at 5% of total annual service revenues from the utility's last general rate case.