CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: MARCH 24, 2026
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: AMENDMENT OF MUNICIPAL CODE CHAPTER 10.24 (WATER SYSTEM CROSS-CONNECTIONS); MODIFICATIONS TO WATER
AND ELECTRIC UTILITY RULES AND RELATED DOCUMENTS
ATTACHMENT (Y/N): YES ITEM # 23
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council take the following actions:
1. By Ordinance, adopt amendments repealing and replacing Chapter 10.24 of the Anaheim Municipal Code (AMC) to align local and state-mandated public water system cross-connection control requirements (Attachment 1);
2. By Resolution, adopt modifications to Rule Nos. 11 and 16 (Attachment 2) of the Water Rates, Rules and Regulations, that do not increase rates or fees effective April 3, 2026;
3. By Resolution, adopt modifications to Rule Nos. 16 and 22 (Attachment 4) of the Electric Rates, Rules and Regulations, that do not increase rates or fees effective April 3, 2026;
4. By Motion, approve the Generation Interconnection Agreement (Agreement) for the interconnection of generating facilities to Anaheim’s electric system (Attachment 6) and authorize the Public Utilities General Manager or designee, on behalf of Anaheim, to (a) execute the Agreement from time to time with generating facility owners with any changes that are authorized by Rule No. 22, required by the Risk Manager, or deemed nonmaterial by the City Attorney’s Office; (b) execute all related or implementing documents, including cost-neutral amendments, assignments, and documents contemplated by the Agreement; and (c) take all actions necessary or advisable to implement and administer executed Agreements; and
5. By Motion, determine that the adoption of the Ordinance and Resolutions and approval of the Agreement are not subject to the California Environmental Quality Act (CEQA) because the actions do not constitute a “project” within the meaning of CEQA Guidelines (Cal. Code Regs., title 14, ch. 3) sections 15060(c)(2)-(3) and 15378 in that they are regulatory/administrative actions that establish standards and contractual terms and do not approve, commit Anaheim to, or result in any physical changes to the environment and that, to the extent any of the actions could be considered a “project,” they are exempt from CEQA pursuant to CEQA Guidelines sections 15061(b)(3) and 15301-15304.
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Amendment of Municipal Code Chapter 10.24 (Water System Cross-Connections); Modifications to Water and Electric Utility Rules and Related Documents
March 24, 2026
DISCUSSION:
At its meeting on February 25, 2026, the Public Utilities Board (PUB) recommended that the City Council approve these actions.
Anaheim Public Utilities (APU) regularly reviews its water and electric service rules to clarify utility and customer requirements, align with evolving legislation or regulations, and update operational practices. These reviews support APU’s proactive approach to maintaining safe, reliable, and efficient service while adapting to changes in industry practices and regulations.
There are four rules contained in the Electric Rates, Rules and Regulations (ERRR) and Water Rates, Rules and Regulations (WRRR) that have been identified for updates as follows:
Water Service Connection Requirements (WRRR Rule 16 and AMC Chapter 10.24) Ensuring the safety and quality of drinking water is a core responsibility of public water utilities. Certain plumbing connections can pose a risk if contaminated water flows back into the public water system. APU has established procedures to address such risks that may include commercial and industrial hazards related to medical waste, manufacturing, or food processing.
In order to align with the State Water Resources Control Board’s (Water Board) adopted regulations, APU is recommending updates to AMC Chapter 10.24 and the corresponding rule to incorporate a required Cross-Connection Control Management Plan (Plan) that documents how these risks are identified, monitored, and managed.
The Plan is currently available online and has been submitted to the Water Board for review and approval. The Plan builds on existing APU practices and procedures and requires customers to install, maintain, and secure Backflow Protection Assemblies (BPAs) where applicable. APU staff conducts inspections and may require corrective actions. If corrections are not made and a health hazard is posed by an unsatisfactory BPA, APU has the authority to discontinue water service until such time that risks have been sufficiently mitigated.
WRRR Rule 16 pertains to Service Connections, Meters, and Customers’ Facilities. Updates specific to cross-connection requirements will reference the Plan that APU will make available to existing and new customers. Corresponding updates to AMC Chapter 10.24 will align Anaheim’s service rules and local code with the Plan’s framework and requirements before the Plan’s approval by the Water Board. Approving these updates now allows APU to implement the Plan seamlessly once it is adopted and ensures consistency across all related documents. An ordinance is required to amend the AMC, which is provided for consideration along with edits to WRRR Rule 16.
Additional modifications to WRRR Rule 16 are related to clarifying that APU staff have the right of access to its water infrastructure on private property. Access may be required during emergencies, inspection or upgrade of equipment, meter reading, and related purposes. With increasing occurrences of tampering and vandalism, customers have been installing security measures such as locked doors, gates, and fences. Modifications clarify that APU will still need access to utility equipment.
Amendment of Municipal Code Chapter 10.24 (Water System Cross-Connections); Modifications to Water and Electric Utility Rules and Related Documents
March 24, 2026
Other administrative modifications include that customers may request that APU install water service connections at their request and cost, and that service plan checks that are completed within four hours will not be charged for basic and straightforward development projects that require minimal staff time.
Water Service Disconnections for Non-Payment (WRRR Rule 11) Senate Bill (SB) 998, known as the Water Shutoff Protection Act, sets statewide standards and procedures for how water utilities handle service disconnections for non-payment. These provisions have been incorporated into the California Health and Safety Code.
Updates to WRRR Rule 11 reinforce APU’s existing customer protections. The updates include clarifying billing and service discontinuance procedures, including notice requirements, payment arrangement options, and suspension of disconnections for customers facing financial or health- related hardships. In addition to requiring that water utilities offer payment plans, SB 998 requires accounts to be at least sixty days delinquent prior to shutoff and that account holders receive at least seven business days’ notice prior to disconnection. These state policies are already in practice by APU staff, and the Rule 11 modifications memorialize the legislative requirements.
Electric Service Connections (ERRR Rule 16)
State housing policies have prioritized the building of residential dwelling units that have resulted in various configurations such as Accessory Dwelling Units (ADUs) that include secondary living units on a parcel with a primary single-family home and conversion of garage spaces into living spaces in multi-family units. Other multi-family dwellings may be configured in such a way that metering at a single point is preferred, such as in mobile home parks, permanent supportive affordable housing, or apartment complexes. Additionally, with parking structures that are looking to add electric vehicle (EV) charging, a second utility service may be needed due to capacity constraints in the existing service. Updates to ERRR Rule 16 afford APU staff with more flexibility when designing electric service connections and metering to better account for project- specific needs and site limitations.
Additional administrative updates clarify the utility’s right of access on private property to operate, maintain, and inspect utility equipment. They also reinforce that utility easements must remain clear of obstructions and structures.
Updating Interconnection Requirements (ERRR Rule 22 and Electric Interconnection Agreement)
In support of state clean energy policies, electric utilities are required to provide access to the electric grid for customer-owned distributed energy resources such as solar panels and battery systems. As the solar industry has proliferated, both businesses and residents have installed solar panels to lower their usage and receive payment for excess energy sent to the grid.
Approximately 10% of APU’s peak demand is served by customer-owned solar generation.
Updates to ERRR Rule 22 clarify interconnection requirements to ensure safe and reliable operation as more solar and batteries are interconnected to the grid, taking into consideration that Amendment of Municipal Code Chapter 10.24 (Water System Cross-Connections); Modifications to Water and Electric Utility Rules and Related Documents
March 24, 2026
solar power systems are increasing in size and may impact grid reliability if installations are not coordinated. The modifications to Rule 22 do not create new requirements, increase costs, or slow the process for the majority of customers who are installing smaller systems.
Importantly, Rule 22 primarily applies to installation systems that are greater than 1 megawatt in capacity. Small distributed resources, such as those in residential units, are typically no larger than 10 kilowatts, not subject to Rule 22 under normal conditions, and AMC
15.05.060 continues to allow for streamlined permitting for such small residential installations.
For larger, more complex systems, technical studies are required to identify protection measures specific to the circuit that serves the customer's property. APU provides Interconnection Guidelines to developers that specify technical requirements and outline the information required for studies to be performed, and ERRR Rule 22 references these guidelines that may be amended periodically as needed.
In conjunction with these updates to Rule 22, APU has updated a standardized Generation Interconnection Agreement (Agreement) that establishes the contractual framework between APU and parties seeking to interconnect distributed energy resources to the electric grid. The Agreement formalizes the rights and responsibilities of both parties, including technical specifications, safety requirements, operational protocols, and liability provisions. City Council last approved updates to this Agreement template in 2014, and proposed updates now are intended to help clarify requirements and ensure that references to other documents and applicable rules are consistent.
ENVIRONMENTAL DETERMINATION:
APU recommends that the City Council determine that the proposed actions—adoption of the Ordinance and Resolutions and approval of the Agreement—are not subject to CEQA because they do not constitute a “project” under CEQA Guidelines 15060(c)(2)-(3) and 15378 and are alternatively exempt pursuant to 15061(b)(3) and 15301-15304.
IMPACT ON BUDGET:
The proposed updates to the Water and Electric Rates, Rules and Regulations, related municipal code amendments, and approval of the standard interconnection agreement are administrative and regulatory in nature and do not result in any fee increases or direct budget impacts.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Amendment of Municipal Code Chapter 10.24 (Water System Cross-Connections); Modifications to Water and Electric Utility Rules and Related Documents
March 24, 2026
Attachments:
1. Ordinance repealing and replacing AMC Chapter 10.24
2. Marked version of AMC Chapter 10.24 (redline)
3. Resolution modifying Rule Nos. 11 and 16 of the Water Rates, Rules and Regulations
4. Marked version of Rule Nos. 11 and 16 (redline)
5. Resolution modifying Rule Nos. 16 and 22 of the Electric Rates, Rules and Regulations
6. Marked version of Rule Nos. 16 and 22 (redline)
7. Generation Interconnection Agreement
8. Marked version of Generation Interconnection Agreement (redline)