Senate approves SB 28 requiring tiered water pricing and customer notices after debate on equity and tax impacts

SALT LAKE CITY — The Utah Senate on Tuesday passed Senate Bill 28, a measure requiring culinary water providers to adopt increasing-block (tiered) pricing and to provide annual customer notices explaining block-unit rates and billing cycles.

Senator Jenkins, sponsor of SB 28, framed the bill as procedural: "This is a process bill," he said, adding the law requires a method for pricing that makes clear when a customer’s usage moves into a higher-priced block. Jenkins said the intent is to encourage conservation by making the cost consequences of higher use transparent to customers.

The measure does not prescribe how large the step increases must be. Jenkins noted technicalities could allow providers to implement very small step increases but said the statute’s purpose is to standardize the billing structure and notification to customers.

Several senators asked whether the bill would force water districts to upgrade meters or otherwise impose costs on customers. Jenkins responded that the requirement is directed at domestic (culinary) water systems and that most districts already meter customers; where meters are unavailable, districts could not implement the tiered structure without technological changes.

Senator Dayton asked whether the bill merely provides information to ratepayers or whether other parties would receive the data, and whether a shift in utility pricing could lead to higher property taxes. "Is this information for the taxpayer only?" Dayton asked. Jenkins said the information is intended for the water user but acknowledged districts and boards would likely use the data as part of internal oversight.

Senator Jerry Stevenson directly addressed tax concerns: "If this caused any increase in the property tax rate, there would have to be a truth in taxation hearing," he said, noting the bill itself does not alter truth-in-taxation procedures.

Senator Madsen said he supported the policy direction but worried the bill did not protect large-lot property owners who had previously dedicated water rights to a system. He said he could not support the bill without language to limit any perceived inequity and explained he would vote no on that basis.

Despite those concerns, the roll-call later recorded 26 yay votes, 2 nay votes and 1 absence; the bill passed and will be sent to the House for consideration.

What SB 28 does and does not do SB 28 requires water providers that supply culinary water to use an increasing-block pricing structure and to provide notices to customers at least annually about block-unit rates and where customers stand in the billing cycle. The bill does not set specific price amounts, does not itself raise or lower rates, and does not exempt providers that already use tiered pricing.

Next steps The bill was transmitted to the Utah House of Representatives for consideration. If the House approves it in its current form, the enacted statute will require local water providers to adopt the specified procedural elements; any specific rate changes would be set later by the local provider (subject to applicable public hearing or taxation rules).