Chapter 665, Statutes of 2001 (AB 793, Cox) requires the LAO to report to the Legislature on the use of best value procurement by Municipal Utility Districts. Based on the limited experience to date, it appears that the best value procurement authority provides municipal utility districts with an important tool. The one district that has used the authority—SMUD—reports major benefi ts and we are not aware of any signifi cant downsides. Accordingly, we recommend that the Legislature extend the law which authorizes this practice beyond the current January 1, 2007 sunset date.