Section 849.2 Of Article 5.7. Monterey Peninsula Water Supply Securitization Act From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 5.7.
849.2
. (a) A qualifying water utility for which a financing order
has been issued shall cause the proceeds of any water rate relief
bonds issued pursuant to a financing order to be placed in a separate
account. A qualifying water utility may use the proceeds of the
issuance of water rate relief bonds for paying water supply costs and
financing costs and for no other purpose.
(b) A financing order may require the qualifying utility to file
with the commission a periodic report showing the receipt and
disbursement of proceeds of water rate relief bonds. A financing
order may authorize the staff of the commission to review and audit
the books and records of the qualifying water utility relating to the
receipt and disbursement of proceeds of water rate relief bonds. The
provisions of this subdivision shall not be construed to limit the
authority of the commission to investigate the practices of the
qualifying utility or to audit the books and records of the
qualifying water utility.
(c) A qualifying water utility for which a financing order has
been issued shall annually provide to its customers a concise
explanation of the water supply charges approved in a financing
order, as modified by subsequent issuances of water rate relief bonds
authorized under a financing order, if any, and by application of
the true-up adjustment mechanism as provided in the financing order.
These explanations shall be made after the annual true-up adjustment
pursuant to subdivision (g) of Section 849.1 and prior to, or
simultaneous with, the effective date of the adjustment, and may be
made by bill inserts, Internet Web site information, or other
appropriate means. If water rate relief bonds are issued by a public
financing entity, the public financing entity, or its trustee or
representative, shall provide the information to the qualifying water
utility as reasonably requested in order to comply with its
obligations under this section.
(d) The failure of a qualifying water utility to apply the
proceeds of water rate relief bonds in a reasonable, prudent, and
appropriate manner or otherwise comply with any provision of this
section shall not invalidate, impair, or affect any financing order,
water supply property, water supply charges, or water rate relief
bonds.