Senate Bill 211 Summary

• Establishes a Water and Sewer Investment Plan rate-making mechanism allowing utilities to set base rates and annual rate adjustments for a three-year period based on approved capital investments and expenses without requiring additional rate cases.

• Limits annual rate adjustments to 5% of the utility's gross revenues in years two and three, with exceptions for emergency capital investments addressing drinking water/effluent standard compliance or cyber/physical security risks.

• Implements "banding of authorized returns" mechanism with authorized return on equity set at a midpoint with 100 basis point ranges above and below, requiring utilities to refund earnings exceeding the high-end range to customers.

• Increases the cumulative system improvement charge cap from 5% to 7.5% of total annual service revenues, with eligibility expanded to include hydro tanks, pumping equipment, and compliance with secondary drinking water standards and other health/environmental standards.

• Requires the Public Utilities Commission to adopt implementing rules within 120 days and report to the Joint Legislative Commission on Energy Policy by July 1, 2026 on plan impacts including customer rates, disconnections for nonpayment, and drinking water quality effects.