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. The scoping memos identify what possible rule changes the commission will be considering, and they give the utilities an opportunity to prepare their arguments and evidence to address them. In this case, the court said, the memos only referred to how to improve water sales forecasting, not to eliminating the decoupling mechanisms.

Related articles:

• California Water Association news release: California State Supreme Court safeguards water utilities decoupling and due process rights