Allows a water company that is currently in compliance with all applicable commission requirements to adjust all of its charges by up to three percent in any calendar year without a hearing. This is to cover increased costs for water and employees' compensation and benefits, provided that the water company has not changed its rates in the prior twelve-month period. (See also HB 1046).   Official Text and Analysis.

Adds specific conditions if a private water company seeks to adjust its rates up to 3 percent without a UTC hearing. Clarifies that a water company may still file for rate changes under current law and regulations, and that the UTC continues to retain other powers within the scope of its authority. Requires the UTC to report to the Legislature by October 1, 2018, on the new process for adjusting rates. Adds an expiration date of June 30, 2019.