Find the information you need to own and operate your private water utility.
Utility owners may sell or transfer a water system to another individual or company, a society, municipality, regional district or an improvement district. Normally the transfer of a water system is generated by the owner who no longer wants to operate it. Occasionally, due to poor service quality and/or deterioration of the water system, system users approach the utility owner either to have the assets transferred to some form of public authority or to acquire it themselves-by way of a transfer to a corporation or society that they have formed.
From time to time the Comptroller of Water Rights orders the establishment of trust funds for specific purposes. No distributions may be made from trust funds without authority of the Comptroller, except for interest earned on Maintenance Reserve Trust Funds and Revenue Deficit Trust Funds.
Approved vehicles for investing trust fund monies include:
A society is usually formed by property owners to acquire a water system when no local government options are available. Forming a society occurs when the original owner/developer no longer wishes to operate the utility. Local public service agencies are normally formed to acquire water systems and provide service. Local service areas of regional districts are the preferred form of organization. However, sometimes formation of a society is the only option available, such as when the number of customers is too small or the regional district is unwilling to form a local service area.
The purpose of a hearing is to obtain the evidence and argument necessary for the Comptroller of Water Rights to make a decision and to give interested parties fair opportunity to make submissions. Hearings are held most often on applications for rate increases. The two main types of hearings conducted by the Comptroller are oral and written. The oral hearing process usually involves wide public participation. Written hearings are usually conducted when a specific issue involves a few interested parties.
A utility’s water tariff sets out the terms and conditions of service including the prescribed rates.
A customer can arrange to view a utility’s water tariff by contacting the utility’s designated office during normal business hours.
Private water utility operators and the customer of a private water utility can make an inquiry or complaint and contact the Water Utility Regulation Section.