Section 2705 Of Chapter 2. Water Companies From California Public Utilities Code >> Division 1. >> Part 2. >> Chapter 2.
2705
. Any corporation or association that is organized for the
purposes of delivering water to its stockholders and members at cost,
including use of works for conserving, treating, and reclaiming
water, and that delivers water to no one except its stockholders or
members, or to the state or any agency or department thereof, to any
city, county, school district, or other public district, or any
federal agency that provides fire protection or operates park
facilities, or to any other mutual water company, at cost, is not a
public utility, and is not subject to the jurisdiction, control or
regulation of the commission. However, a mutual water company may
perform the following acts without becoming a public utility and
becoming subject to the jurisdiction, control or regulation of the
commission:
(a) May deliver water at cost to any lessee of its stock or shares
or other evidence of membership where the lease is in writing signed
by the owner of the stock or shares or other evidence of membership
and the lessee thereof and approved by the mutual water company.
(b) May deliver water at cost to any land leased by a stockholder,
shareholder, or member of the mutual water company to a person not a
stockholder, shareholder or member thereof, provided the lease is in
writing signed by the stockholder, shareholder or member and the
lessee of the land and approved by the mutual water company.
(c) May transfer water or water rights to, or exchange water or
water rights with, another entity pursuant to state or federal law,
or both.
(d) In a bona fide water emergency, but for no longer than the
existence of the emergency, may deliver water at cost to any person
owning or leasing real property located within or adjacent to the
service area of the mutual water company, provided that the water is
delivered pursuant to a written contract signed by the mutual water
company and the person to whom the water is delivered.
(e) May deliver water pursuant to any contract for water service
made:
(1) In settlement of litigation involving disputed water rights or
any judgment in the litigation.
(2) In consideration of the conveyance of a well, water right, or
easement for water distribution purposes.
All of these leases and contracts shall be preserved for a period
of 10 years by a mutual water company and shall be subject to
inspection by the commission.
The term "cost" as used in this section shall be construed to mean
without profit.