Section 781.5 Of Article 3. Equipment, Practices, And Facilities From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 3.

. The commission may require a water corporation that furnishes potable water for residential, commercial, industrial, or institutional use through less than 500 service connections that is not subject to the requirements of Section 526, 527, or 528 of the Water Code, or a residential, commercial, industrial, or institutional customer of the corporation, to install a water meter at any water service connection between the water system of the corporation and the customer if after a public hearing held within the service area of the corporation, the commission finds, based upon the evidence presented at that hearing, that any of the following are true:
  (a) Metering will be cost effective within the service area of the corporation.
  (b) Metering will result in a reduction in water consumption within the service area of the corporation.
  (c) The costs of metering will not impose an unreasonable financial burden on customers within the service area of the corporation unless it is found to be necessary to ensure continuation of an adequate water supply within the service area of the corporation.