Section 789.1 Of Article 3.5. Water Utility Infrastructure, Plant And Facilities From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 3.5.
789.1
. The Legislature finds and declares all of the following:
(a) Water corporations currently are faced with, and will continue
to be faced with, increasing demands for new infrastructure, plant,
and facilities to comply with increasingly strict state and federal
safe drinking water laws and regulations.
(b) The state's limited water supply will require investment by
water corporations in infrastructure, plant, and facilities to
develop new sources of supply, make existing sources of supply more
reliable, and encourage and implement water conservation measures
including water reclamation and reuse.
(c) Water corporations also are faced with the need to replace or
upgrade water infrastructure, plant, and facilities and to design and
construct all of those replacements and improvements to meet the
governing fire flow standards for public fire protection purposes.
(d) Water corporations may, from time to time, own real property
that once was, but is no longer, necessary or useful in the provision
of water utility service and that now may be sold. It is the policy
of the state that water corporations be encouraged to dispose of real
property that once was, but is no longer, necessary or useful in the
provision of water utility service and to invest the net proceeds
therefrom in utility infrastructure, plant, facilities, and
properties that are necessary or useful in the provision of water
service to the public.
(e) It is the policy of the state that any net proceeds from the
sale by a water corporation of real property that was at any time,
but is no longer, necessary or useful in the provision of public
utility service, shall be invested by a water corporation in
infrastructure, plant, facilities, and properties that are necessary
or useful in the performance of its duties to the public and that all
of that investment in infrastructure, plant, facilities, and
properties shall be included among the other utility property of the
water corporation that is used and useful in providing water service
and upon which the commission authorizes the water corporation the
opportunity to earn a reasonable return.