RELATING TO WATER CARRIERS.

Changed the requirement for the commission to establish an automatic adjustment mechanism to a discretionary authorization, giving the commission the choice to initiate or deny the mechanism.

Clarified that the commission may modify tariff filing requirements in particular instances or via general order for special circumstances.

Updated the sunset date for the entire act from July 1, 2029, to July 1, 2033.

Corrected a typo in the description section where 'Commissions' was pluralized to match the singular 'Commission' used elsewhere.

Requires the Public Utilities Commission to establish a new 'water carrier inflationary cost index automatic adjustment mechanism' by July 1, 2026, to automatically adjust rates based on inflation and economic factors.

Changed the language for the annual cap on automatic adjustments from 'five per cent per year' to 'not more than five per cent per year'.

Updated the filing requirement for the third year of the adjustment cycle to specify that applications must be subject to review under 'subsections 271G-17(d) and (e)' instead of sections (d) and (e).

Added a new definition for 'Automatic adjustment mechanism' to clarify that it allows water carriers to change rates between standard rate cases.

Corrected minor grammatical and formatting inconsistencies in the text regarding who must file tariffs (changing 'water carrier' to 'carrier' in some instances) and the commission's authority to reject non-compliant tariffs.

Mandates the creation of an automatic adjustment mechanism to address inflation and economic factors for water carriers.

Limits the automatic adjustment mechanism to a maximum of 5% per year based on wharfage rate increases.

Removed the prohibition on cross-subsidization involving water carriers.

Defines 'automatic adjustment mechanism' as a rate adjustment tool allowing changes between formal rate cases.

Establishes a repeating three-year cycle where adjustments apply annually for the first two years, followed by a mandatory full rate application in the third year.

Exempts customers eligible for preferential agricultural water rates from any automatic adjustment increases.

Updated the tariff filing rules to allow changes to approved automatic adjustment surcharges with only 30 days' notice instead of the standard 45 days.

Removed the requirement for the Public Utilities Commission to establish an automatic inflation adjustment mechanism for water carriers.

Added a permanent prohibition preventing the commission from allowing, requiring, or approving any cross-subsidization involving water carriers.

Changed the effective date from July 1, 2026, to July 1, 3000, making the new prohibition permanent rather than temporary.

Added a new definition of 'cross-subsidization' as using revenues from profitable routes to cover costs of non-profitable services.

Removed exemptions for agricultural water rates and the ability for the commission to waive requirements based on public interest.

Changed the automatic adjustment mechanism from a mandatory requirement for the commission to establish it to a discretionary power where the commission may or shall apply it based on specific timeframes.

Modified the filing requirements for the automatic adjustment mechanism to specify that filings must be part of a 'general rate case application' rather than just a 'rate case application'.

Added specific timeframes for the automatic adjustment mechanism: mandatory application from July 1, 2026, to June 30, 2029, and optional application from July 1, 2029, to June 30, 2033.

Added a sunset provision stating the entire act will expire on July 1, 2033.

Added an exemption clause stating that customers eligible for preferential agricultural water rates are not subject to these automatic rate adjustments.