Panel advances bill allowing some water suppliers to use tiered pricing and plan for metering

The committee favorably recommended House Bill 274 (third substitute) after adopting a technical amendment, a committee member said. Sponsor testimony said the bill arose from a legislative study of fee collection and water-delivery inefficiencies and would allow retail water providers in metered systems to set higher conservation-oriented tiers for extreme water use.

Representative Snyder (sponsor) told the committee that property tax remains a principal funding source and that current law generally limits retail water providers to cost-of-service pricing. The bill would allow entities, where metering is in place, to establish higher rates for extreme use to encourage conservation while preserving cost-of-service principles for lower tiers. Snyder said systems that are not required to meter remain exempt from the bill’s metering and tier-pricing provisions.

Mark Stratford, general counsel for Jordan Valley Water Conservancy District, testified in support and emphasized local flexibility: “Every system is free to figure out what works for that system. It doesn't... tell them how the action is to be done. So they can figure out what works for them as far as specific increments or specific funding levels, at the local level,” he told the committee.

The committee adopted an amendment in Representative Snyder’s name described as a small technical change, then voted to favorably recommend the third substitute as amended by voice vote; committee members recorded the motion as passing unanimously.

With the amendment adopted, the bill moves forward with a favorable recommendation to the full Legislature.