October 29, 2025, Monterey, Calif. — The California Association of Mutual Water Companies Joint Powers Risk Insurance Authority (CalMutuals JPRIMA) Chief Executive Officer Susan Allen today hailed the enactment of Assembly Bill 428, a measure that expands access to affordable insurance options for water systems serving California’s smaller, older, lower-income, and rural communities.  Allen is marking the passage of AB 428 this week by educating small regulated water utilities at the California Water Association’s Annual Meeting in Monterey, California, about the advantages of CalMutuals JPRIMA coverage. 

Authored by Assemblymember Blanca Rubio (D–Baldwin Park) and co-sponsored by the California Water Association (CWA) and CalMutuals, AB 428 allows water corporations regulated by the California Public Utilities Commission (CPUC) to join joint powers agreements (JPAs) alongside mutual water companies and public water agencies. This change enables these systems to participate in shared insurance programs, rather than having to secure costly individual coverage.

This legislation builds on the foundation established by CalMutuals in 2016, when the association successfully advanced legislation expanding access to comprehensive and competitive insurance options for small mutual water companies. That effort led to the creation of the CalMutuals Joint Powers Risk and Insurance Management Authority (JPRIMA).

CalMutuals JPRIMA President & CEO Allen praised the new law as a major step forward for equity and resiliency among California’s diverse water systems.

“As California’s voice for small water systems, we broke new ground in 2016 when Governor Jerry Brown signed AB 656 (Garcia), allowing mutual water companies to form insurance JPAs with public agencies,” said Allen. “Mutual water companies are community-owned, not-for-profit water providers. Through insurance JPAs like CalMutuals JPRIMA, we’ve been able to deliver broader coverage and lower premiums by actively reducing risks that drive up insurance costs.  We also reinvest residual revenues in small water system capacity-building efforts.”

“While large utilities can afford self-insurance or membership in multimillion-dollar insurance pools, CalMutuals JPRIMA provides an affordable, proactive alternative—one that smaller water suppliers can now access, including those regulated by the CPUC. We thank Governor Gavin Newsom for signing AB 428 and recognizing the importance of extending these protections statewide,” said Allen.

CalMutuals JPRIMA Board President David Michalko emphasized the bill’s importance in today’s rapidly changing risk environment.

“Having affordable insurance choices is vital in an age of increasing volatility—whether from natural disasters, technology failures, or evolving workplace safety laws,” Michalko said. “Earlier this year, CalMutuals JPRIMA assisted three mutual water companies devastated by the Eaton Fire, helping them restore service as quickly as much larger utilities like LADWP. In emergencies, there should be no distinction between small and large systems. We’re grateful to Assemblymember Blanca Rubio for ensuring AB 428 makes that principle a reality.”

Founded in 2013 by twelve mutual water companies in Los Angeles and the Inland Empire, CalMutuals provides technical, financial, and management assistance—as well as advocacy—to small and community-based water systems. In just over a decade, CalMutuals has grown to represent more than 500 members statewide, serving nearly every county in California.

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