789. This article shall be known and may be cited as the Water
Utility Infrastructure Improvement Act of 1995.
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.
790. (a) Whenever a water corporation sells any real property that
was at any time, but is no longer, necessary or useful in the
performance of the water corporation's duties to the public, the
water corporation shall invest the net proceeds, if any, including
interest at the rate that the commission prescribes for memorandum
accounts, from the sale in water system infrastructure, plant,
facilities, and properties that are necessary or useful in the
performance of its duties to the public. For purposes of tracking the
net proceeds and their investment, the water corporation shall
maintain records necessary to document the investment of the net
proceeds pursuant to this article. The amount of the net proceeds
shall be a water corporation's primary source of capital for
investment in utility infrastructure, plant, facilities, and
properties that are necessary or useful in the performance of the
water corporation's duties in providing water utility service to the
public.
(b) All water utility infrastructure, plant, facilities, and
properties constructed or acquired by, and used and useful to, a
water corporation by investment pursuant to subdivision (a) shall be
included among the water corporation's other utility property upon
which the commission authorizes the water corporation the opportunity
to earn a reasonable return.
(c) This article shall apply to the investment of the net proceeds
referred to in subdivision (a) for a period of 8 years from the end
of the calendar year in which the water corporation receives the net
proceeds. The balance of any net proceeds and interest thereon that
is not invested after the eight-year period shall be allocated solely
to ratepayers.
(d) Upon application by a water corporation with 10,000 or fewer
service connections, the commission may, after a hearing, by rule or
order, exempt the water corporation from the requirements of this
article.
(e) The commission retains continuing authority to determine the
used, useful, or necessary status of any and all infrastructure
improvements and investments.
790.1. In any proceeding pending after January 1, 1996, the
commission shall apply this article in its consideration of any
matter concerning the sale by a water corporation of real property
that is not necessary or useful in the provision of water utility
service, for any sale that occurred prior to that date. If the water
corporation has not invested 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, it may
elect to do so during the period provided in subdivision (c) of
Section 790 and that period shall be deemed to have commenced as of
January 1, 1996.
789. This article shall be known and may be cited as the Water
Utility Infrastructure Improvement Act of 1995.
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.
790. (a) Whenever a water corporation sells any real property that
was at any time, but is no longer, necessary or useful in the
performance of the water corporation's duties to the public, the
water corporation shall invest the net proceeds, if any, including
interest at the rate that the commission prescribes for memorandum
accounts, from the sale in water system infrastructure, plant,
facilities, and properties that are necessary or useful in the
performance of its duties to the public. For purposes of tracking the
net proceeds and their investment, the water corporation shall
maintain records necessary to document the investment of the net
proceeds pursuant to this article. The amount of the net proceeds
shall be a water corporation's primary source of capital for
investment in utility infrastructure, plant, facilities, and
properties that are necessary or useful in the performance of the
water corporation's duties in providing water utility service to the
public.
(b) All water utility infrastructure, plant, facilities, and
properties constructed or acquired by, and used and useful to, a
water corporation by investment pursuant to subdivision (a) shall be
included among the water corporation's other utility property upon
which the commission authorizes the water corporation the opportunity
to earn a reasonable return.
(c) This article shall apply to the investment of the net proceeds
referred to in subdivision (a) for a period of 8 years from the end
of the calendar year in which the water corporation receives the net
proceeds. The balance of any net proceeds and interest thereon that
is not invested after the eight-year period shall be allocated solely
to ratepayers.
(d) Upon application by a water corporation with 10,000 or fewer
service connections, the commission may, after a hearing, by rule or
order, exempt the water corporation from the requirements of this
article.
(e) The commission retains continuing authority to determine the
used, useful, or necessary status of any and all infrastructure
improvements and investments.
790.1. In any proceeding pending after January 1, 1996, the
commission shall apply this article in its consideration of any
matter concerning the sale by a water corporation of real property
that is not necessary or useful in the provision of water utility
service, for any sale that occurred prior to that date. If the water
corporation has not invested 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, it may
elect to do so during the period provided in subdivision (c) of
Section 790 and that period shall be deemed to have commenced as of
January 1, 1996.
789. This article shall be known and may be cited as the Water
Utility Infrastructure Improvement Act of 1995.
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.
790. (a) Whenever a water corporation sells any real property that
was at any time, but is no longer, necessary or useful in the
performance of the water corporation's duties to the public, the
water corporation shall invest the net proceeds, if any, including
interest at the rate that the commission prescribes for memorandum
accounts, from the sale in water system infrastructure, plant,
facilities, and properties that are necessary or useful in the
performance of its duties to the public. For purposes of tracking the
net proceeds and their investment, the water corporation shall
maintain records necessary to document the investment of the net
proceeds pursuant to this article. The amount of the net proceeds
shall be a water corporation's primary source of capital for
investment in utility infrastructure, plant, facilities, and
properties that are necessary or useful in the performance of the
water corporation's duties in providing water utility service to the
public.
(b) All water utility infrastructure, plant, facilities, and
properties constructed or acquired by, and used and useful to, a
water corporation by investment pursuant to subdivision (a) shall be
included among the water corporation's other utility property upon
which the commission authorizes the water corporation the opportunity
to earn a reasonable return.
(c) This article shall apply to the investment of the net proceeds
referred to in subdivision (a) for a period of 8 years from the end
of the calendar year in which the water corporation receives the net
proceeds. The balance of any net proceeds and interest thereon that
is not invested after the eight-year period shall be allocated solely
to ratepayers.
(d) Upon application by a water corporation with 10,000 or fewer
service connections, the commission may, after a hearing, by rule or
order, exempt the water corporation from the requirements of this
article.
(e) The commission retains continuing authority to determine the
used, useful, or necessary status of any and all infrastructure
improvements and investments.
790.1. In any proceeding pending after January 1, 1996, the
commission shall apply this article in its consideration of any
matter concerning the sale by a water corporation of real property
that is not necessary or useful in the provision of water utility
service, for any sale that occurred prior to that date. If the water
corporation has not invested 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, it may
elect to do so during the period provided in subdivision (c) of
Section 790 and that period shall be deemed to have commenced as of
January 1, 1996.
