Increasing transparency and consumer protection in water system rates.

Removed the requirement that all public water systems must update their plans every three years, giving the department flexibility to set shorter intervals if necessary.

Added an exemption allowing public water systems owned by special purpose districts to exclude all capital improvement projects from their water system plans.

Expanded the notification process for water system sales to include the county, water districts, and adjacent systems, not just the customers.

Added a new requirement for the utility commission to consider whether special purpose district systems can meet planning requirements given their size and capability limitations.

Added findings stating that consolidation into publicly owned systems is the preferred outcome for failing water systems, with private acquisition allowed only if consolidation is infeasible.

Added requirements that new water systems must be owned or operated by satellite management agencies to ensure financial viability, with exceptions for systems that can prove sufficient resources.

Modified the rate-setting rules to remove a specific 7% return on equity ceiling and focus more on transparency, rate smoothing, and preventing sudden rate increases.

Changed the bill's committee assignment from Environment & Energy to Appropriations and updated the legislative session year from 2025 to 2026.