AI-generated summary, not yet reviewed by Better Utah staff. Please consult the bill text.

Water rate-setting rules for cities and water districts that supply culinary water would be updated under this bill, building on Utah's existing requirement that water suppliers use tiered pricing, where customers pay progressively more per unit as their usage increases. For water suppliers that provide water for outdoor use, the bill would require them to create at least three distinct pricing tiers for primarily residential customers by July 1, 2027: one reflecting efficient indoor water use, one reflecting efficient use that includes some outdoor watering, and one reflecting wasteful or excessive use. The bill also specifies that price increases between these tiers must be large enough to give customers a clear financial incentive to reduce water use, rather than a token increase, and it maintains a rule that for-profit water systems cannot use money collected from the highest-usage tier to pay profits or dividends to investors or owners. Water systems serving 500 or fewer connections would remain exempt from these requirements.