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Padillas SB 473 would restore decoupling option for regulated water utilities; Public Advocate opposes citing pilot results
Summary
SB 473 would permit the PUC to authorize a full revenue-decoupling mechanism for investor-owned water utilities; supporters say decoupling supports conservation and affordability, while the Public Advocate cited pilot results that showed higher net costs for ratepayers under full RAM.
Sen. Padilla presented SB 473 to allow the California Public Utilities Commission to authorize a revenue decoupling mechanism for water corporations regulated by the PUC (commonly called a revenue adjustment mechanism, or RAM). The author and water industry supporters said decoupling separates utility revenue recovery from retail sales volumes, enabling tiered, conservation-focused rate design while protecting utilities revenue stability needed for capital investments.
Supporters, including California Water Service, the State…
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