Section 1006.5 Of Article 1. Specified Utilities From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 5. >> Article 1.
1006.5
. The commission may, after notice and hearing, prior to
authorizing any water or sewer system corporation having annual gross
operating revenues under two hundred thousand dollars ($200,000) to
construct, operate, acquire, expand, or improve its line, plant, or
system, prescribe, as a condition to granting such authority, that
the corporation file with the commission a bond with sufficient
sureties, subject to approval of the commission, in a reasonable
amount not exceeding fifty thousand dollars ($50,000) payable to the
commission and conditioned on the corporation's furnishing adequate
and sufficient service within its service area. The commission may,
after notice and hearing, declare all or any part of the bond
forfeited after finding that the corporation has willfully failed to
furnish adequate and sufficient service without just cause or excuse
and that such failure has continued for an unreasonable duration.
Such bond shall further provide for payment to the commission of the
amount of any penalty assessed against the corporation pursuant to
Section 2107. The commission may, upon petition by a water or sewer
system corporation, for good cause, reduce the amount or eliminate
the requirement of any bond which it has required to be filed
pursuant to this section.