California Supreme Court Reverses Public Utilities Commission on Water Surcharges
The California Supreme Court on Monday reversed the state’s Public Utilities Commission’s 2020 order that stopped water companies from using certain surcharges when their revenue falls short because of conservation efforts.
The court agreed with a group of water companies that the commission hadn’t clearly informed them that it would consider eliminating the so-called decoupling mechanisms — initially prompted by years of drought and the need to conserve water — in the scoping memos for the yearslong rulemaking proceedings that culminated in the 2020 order.