Section 727.5 Of Article 2. Rates From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 2.
727.5
. (a) In establishing rates for water service, the commission
shall consider, and may establish, separate charges for costs
associated with customer service, facilities, variable operating
costs, including fixed and variable costs associated with supplying
the water, or other components of the water service provided to water
users.
(b) The commission shall consider, and may authorize, a water
corporation to assess a fee for future water service, or a
reservation charge for future water service, for persons or entities
occupying or owning property within the service territory of the
water corporation.
(c) The commission shall consider, and may authorize, a water
corporation to establish a balancing account, rate stabilization
fund, or other contingency fund, the purpose of which shall be the
long-term stabilization of water rates.
(d) The commission shall consider, and may authorize, a water
corporation to establish programs, including rate designs, for
achieving conservation of water and recovering the cost of these
programs through the rates.
(e) In establishing rates for recovery of the costs of used and
useful water plant, the commission may utilize a capital structure
and payback methodology that shall maintain the reliability of water
service, shall minimize the long-term cost to ratepayers, shall
provide equity between present and future ratepayers, and shall
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.