On July 2, 2026, the California Public Utilities Commission (Commission) adopted Decision 26-07-031 addressing the water utility acquisition process. 

The Decision orders, among other things, that:

• Failing, at-risk, or potentially at-risk water systems are to be prioritized for acquisitions.
• The Commission may consider gain-on-sale allocation in individual proceedings.
• Water rights are non-depreciable assets that may be included in rate base, subject to certain conditions and Commission discretion. 

Decision 26-07-031 is available here.