AI-generated summary, reviewed by Better Utah staff.

Utah law already requires water suppliers to use tiered pricing structures — meaning customers pay more per unit as they use more water. This bill strengthens those requirements by directing water suppliers that provide outdoor water service to establish at least three distinct pricing tiers by July 1, 2027: one for efficient indoor use, one for efficient use that includes outdoor watering, and one for wasteful or excessive use. It also clarifies that rate increases between tiers must be large enough to serve as a meaningful financial incentive for customers to reduce their water use, and it explicitly states that for-profit water systems cannot use revenue collected from the highest-use tier to pay profits or dividends to owners. Residential customers who use significant amounts of water for outdoor irrigation will face higher costs under this structure, while customers who keep their usage within efficient levels will be less affected.