Section 314.5 Of Chapter 2. The Public Utilities Commission: Organization From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.
314.5
. The commission shall inspect and audit the books and records
for regulatory and tax purposes (a) at least once in every three
years in the case of every electrical, gas, heat, telegraph,
telephone, and water corporation serving over 1,000 customers, and
(b) at least once in every five years in the case of every
electrical, gas, heat, telegraph, telephone, and water corporation
serving 1,000 or fewer customers. An audit conducted in connection
with a rate proceeding shall be deemed to fulfill the requirements of
this section. Reports of such inspections and audits and other
pertinent information shall be furnished to the State Board of
Equalization for use in the assessment of public utilities.