Section 701.10 Of Article 1. Generally From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 1.
701.10
. The policy of the State of California is that rates and
charges established by the commission for water service provided by
water corporations shall do all of the following:
(a) Provide revenues and earnings sufficient to afford the utility
an opportunity to earn a reasonable return on its used and useful
investment, to attract capital for investment on reasonable terms and
to ensure the financial integrity of the utility.
(b) Minimize the long-term cost of reliable water service to water
customers.
(c) Provide appropriate incentives to water utilities and
customers for conservation of water resources.
(d) Provide for equity between present and future users of water
service.
(e) Promote the long-term stabilization of rates in order to avoid
steep increases in rates.
(f) Be based on the cost of providing the water service including,
to the extent consistent with the above policies, appropriate
coverage of fixed costs with fixed revenues.