REFERENCE TITLE: municipal water providers; notice; rates

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 4100

Introduced by

Representative Kolodin

AN ACT

PROVIDING for notice of a potential water rate increase.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Municipal providers; central Arizona project subcontracts; rates; notice; delayed repeal; definitions

A. On or before April 15, 2026, each municipal provider that receives or has an allocation of water from the central Arizona project pursuant to a subcontract with the central Arizona water conservation district organized under title 48, chapter 22, Arizona Revised Statutes, or that receives or has an allocation of water from the central Arizona project pursuant to a lease with another person or subcontract with the central Arizona water conservation district shall do both of the following:

1. Estimate the total cost per acre-foot of securing, treating and delivering an alternative water supply if one hundred percent of the water that is acquired or leased directly or indirectly from the central Arizona project is no longer available.

2. Provide public notice to each customer of the potential increase in rates resulting from losing one hundred percent of the water that is acquired or leased directly or indirectly from the central Arizona project.  The notice shall be in substantially the same form and manner as the public notices required of public service corporations in rate cases by the corporation commission and shall include the following information:

(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.

(c) The typical current bill, potential bill, potential dollar increase and potential percentage increase.

B. On or before April 15, 2026, a municipal provider that is subject to this section shall do all of the following:

1. Mail to each of its customers in each affected service area a copy of the notice required pursuant to this section as a bill insert or as a separate mailing.

2. Cause a copy of the notice required pursuant to this section to be published at least once in a newspaper of general circulation in each affected service area.

3. Post a copy of the notice required pursuant to this section in a prominent location on its website.

C. This section is repealed from and after December 31, 2026.

D. For the purposes of this section, "municipal provider" has the same meaning prescribed in section 45-561, Arizona Revised Statutes.

Sec. 2. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.