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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB4100: municipal water providers; notice; rates
Sponsor: Representative Kolodin, LD 3
Committee on Natural Resources, Energy & Water
Overview
An emergency measure that directs a municipal provider that receives water from the Central Arizona Project (CAP) to notify customers as outlined of the potential increase of their water rates as a result of losing 100% of the water provided by the CAP.
History
In 1968, the CAP was established by the Colorado River Basin Project Act to deliver 1.5 million acre-feet of Colorado River to the most populous areas of the state and reduce the use of groundwater for agriculture and other activities. The CAP water is used by cities, water utilities, agricultural districts and Native American communities throughout central and southern Arizona.
In 1971, the Central Arizona Water Conservation District (CAWCD), a special taxing district, was created to provide Arizona a means to repay the federal government for the reimbursable costs of construction and to manage and operate the physical system. The price of water is determined annually by the CAWCD Board of Directors based on projections of energy, operation, maintenance and replacement costs (CAP)(Arizona State Library).
Provisions
1. Requires a municipal provider, by April 15, 2026, that receives or has an allocation of water from the CAP pursuant to a subcontract with the CAWCD or a lease with another person or subcontract to:
a. estimate the total cost per acre-foot of securing, treating and delivering an alternative water supply if 100% of the water acquired or leased from the CAP is no longer available; and
b. provide public notice to each customer of the potential increase in rates resulting from losing 100% of the water from CAP. (Sec. 1)
2. Mandates that the notice be in the same form and manner as the public notices required of public service corporations in rate cases by the Arizona Corporation Commission. (Sec. 1)
3. Requires the notice include:
a. the potential revenue increase levels for each customer class, in percent;
b. the potential monthly bill increase for a typical residential water customer that are served by a five-eighths inch meter with an average monthly usage; and
c. the typical current bill, potential bill, potential dollar increase and potential percentage increase. (Sec. 1)
4. Instructs a municipal provider, by April 15, 2026, to:
a. mail the notice as a bill insert or a separate mailing to each of its customers in each affected service area;
b. publish the notice at least once in a newspaper in each affected service area; and
c. post the notice in a prominent location on its website. (Sec. 1)
5. Repeals this legislation on January 1, 2027. (Sec. 1)
6. Defines municipal provider. (Sec. 1)
7. Contains an emergency clause. (Sec. 2)
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11. Initials CW HB 4100
12. 2/15/2026 Page 0 Natural Resources, Energy & Water
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