[§269-26.5]  Preferential water rates foragricultural activities.  (a)  It is the policy of the State to promote thelong-term viability of agriculture by establishing mechanisms that provide forpreferential rates for potable water for agricultural activities.  The publicutilities commission shall have the authority to establish preferential ratesfor potable water used for agricultural activities in a public utility'sservice area.

(b)  Upon receipt of a bona fide request forpreferential rates for potable water to be used for agricultural activities,and proof that the customer engages in agricultural activities, a publicutility shall provide proposed preferential rates for potable water to be usedonly for qualified agricultural activities to the public utilities commissionfor approval.  All such rates approved by the public utilities commission shallbe subsidized by the potable water rates charged to other customers of thepublic utility if required as determined by the public utilities commission. In reviewing the proposed preferential rates, the public utilities commission,in consultation with the department of agriculture, may establish additionalcriteria to qualify bona fide agribusinesses for water used solely foragricultural activities.  For rate cases initiated pursuant to this section,the public utilities commission shall allow the recovery of any reasonableunamortized costs incurred by the public utility in its previous rate case;provided however, upon full amortization of these costs, rates shall beadjusted accordingly. [L 2008, c 169, §2]