Section 797 Of Article 4. Books And Accounts From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 4.
797
. The commission shall periodically audit, or direct that an
independent audit be periodically conducted for, all significant
transactions, as specified by the commission, between a water
corporation with more than 2,000 service connections, or an
electrical, gas, or telephone corporation, and every subsidiary or
affiliate of, or corporation holding a controlling interest in, that
water, electrical, gas, or telephone corporation. The commission, in
this connection, may utilize the services of an independent auditor,
who shall be selected and supervised by the commission, or may direct
a water corporation with more than 2,000 service connections, or an
electrical, gas, or telephone corporation, to utilize the services of
an independent auditor, who shall be selected and supervised by that
water, electrical, gas, or telephone corporation. Nothing in this
section prohibits the commission from auditing any transaction
between a water corporation with more than 2,000 service connections,
or an electrical, gas, or telephone corporation, and any subsidiary
or affiliate of, or corporation holding a controlling interest in,
that water, electrical, gas, or telephone corporation, as otherwise
permitted or required by law.