Section 13580.8 Of Chapter 7.5. Water Recycling Act Of 1991 From California Water Code >> Division 7. >> Chapter 7.5.
13580.8
. (a) This section applies only to a retail water supplier
that is regulated by the Public Utilities Commission.
(b) Rates for recycled water that is provided to the customer by a
retail water supplier regulated by the Public Utilities Commission
shall be established by the commission pursuant to Section 455.1 of
the Public Utilities Code. A regulated water utility may request the
commission to establish the rate or rates for the delivery of
recycled or nonpotable water, with the objective of providing, where
practicable, a reasonable economic incentive for the customer to
purchase recycled or nonpotable water in place of potable water.
(c) A regulated water utility may propose a rate or rates for
recycled or nonpotable water by tariff or by contract between the
retail water supplier and the customer. Where the rate or rates are
set by contract, the water utility and its customer shall meet,
confer, and negotiate in good faith to establish a contract rate.
(d) The commission shall, as appropriate, provide a discount from
the general metered rate of the water utility for potable water by
either of the following means:
(1) Passing through to the customer the net reduction in cost to
the water utility in purchasing and delivering recycled or nonpotable
water as compared to the cost of purchasing and delivering potable
water.
(2) Granting to the customer a uniform discount from the water
utility's general metered potable water rate when the discount in
paragraph (1) is determined to be an insufficient incentive for the
customer to convert to the use of recycled or nonpotable water. If
the commission provides for a discount pursuant to this paragraph
that is greater than the water utility's reduction in cost, the
commission shall authorize the water utility to include the aggregate
amount of that discount in its revenue requirements to be applied
to, and recovered in, rates that are applicable to all general
metered customers.