Section 40223 Of Chapter 6.5. Existing Systems From California Public Utilities Code >> Division 10. >> Part 4. >> Chapter 6.5.

. The purchase price to be paid for the existing system, or any portion thereof to be purchased, shall be the reproduction cost new, including going concern value, at the date upon which the district commences negotiations for the purchase of the existing system, or the portion of the existing system, less depreciation, including wear, tear, and obsolescence, if any.