Section § 2701

Explanation

This law states that any entity, such as a person, company, or corporation, that owns or manages a water system in California and provides water to others—whether they're individuals, businesses, or local governments—is considered a public utility. As a public utility, they're subject to state rules and oversight by the commission, unless there are specific exceptions noted in this chapter.

Any person, firm, or corporation, their lessees, trustees, receivers or trustees appointed by any court whatsoever, owning, controlling, operating, or managing any water system within this State, who sells, leases, rents, or delivers water to any person, firm, corporation, municipality, or any other political subdivision of the State, whether under contract or otherwise, is a public utility, and is subject to the provisions of Part 1 of Division 1 and to the jurisdiction, control, and regulation of the commission, except as otherwise provided in this chapter.

Section § 2702

Explanation

This law states that if a corporation or group, organized to supply water only to its members or shareholders at cost, also sells water to anyone else for money, including to the state, government agencies, or other water companies, it is considered a public utility. As a public utility, it must follow specific regulations and be under the commission's authority.

Any corporation or association which is organized for the purpose of delivering water solely to its stockholders or members at cost, and which delivers water to others than its stockholders or members, or to the state or any department or agency thereof or any school district, or to any other mutual water company, for compensation, is a public utility and is subject to Part 1 (commencing with Section 201) and to the jurisdiction, control, and regulation of the commission.

Section § 2703

Explanation

If a company or group supplies water both to its members at cost and to anyone else, like businesses or government entities, it's considered a public utility. This means it's regulated by the state commission just like other public utilities.

Any corporation or association which is organized both for the purpose of delivering water to its stockholders or members at cost, and to persons, firms, corporations, municipalities, or other political subdivisions of the state, is a public utility and is subject to Part 1 (commencing with Section 201) and to the jurisdiction, control, and regulation of the commission.

Section § 2704

Explanation

This law says that if you own a private water supply primarily used for your own home, business, or farm, and you have some extra water, you can sell or share it without government regulation. You can deliver the extra water for use in other homes, schools, or nearby farms. In emergencies, you can share water for one irrigation season. You can also help nearby neighbors if they don't have another water source. In these scenarios, you don't have to worry about being controlled by the regulatory commission.

Any owner of a water supply not otherwise dedicated to public use and primarily used for domestic or industrial purposes by him or for the irrigation of his lands, who (a) sells or delivers the surplus of such water for domestic or school district purposes or for the irrigation of adjoining lands, or (b) in an emergency water shortage sells or delivers water from such supply to others for a limited period not to exceed one irrigation season, or (c) sells or delivers a portion of such water supply as a matter of accommodation to neighbors to whom no other supply of water for domestic or irrigation purposes is equally available, is not subject to the jurisdiction, control, and regulation of the commission.

Section § 2705

Explanation

This law states that a corporation or association focused on delivering water to its stockholders and members at cost, including activities like conserving and treating water, is not considered a public utility. This means it operates without oversight from the public utilities commission if it provides water only to its members or specific entities like government agencies and mutual water companies. However, such a company can still deliver water in certain situations without becoming a public utility, such as through written and approved leases to non-members, in emergencies, and through specific contracts related to litigation or water rights exchanges. All related documents must be kept for 10 years. 'Cost' means without profit in this context.

Any corporation or association that is organized for the purposes of delivering water to its stockholders and members at cost, including use of works for conserving, treating, and reclaiming water, and that delivers water to no one except its stockholders or members, or to the state or any agency or department thereof, to any city, county, school district, or other public district, or any federal agency that provides fire protection or operates park facilities, or to any other mutual water company, at cost, is not a public utility, and is not subject to the jurisdiction, control or regulation of the commission. However, a mutual water company may perform the following acts without becoming a public utility and becoming subject to the jurisdiction, control or regulation of the commission:
(a)CA Public Utilities Code § 2705(a) May deliver water at cost to any lessee of its stock or shares or other evidence of membership where the lease is in writing signed by the owner of the stock or shares or other evidence of membership and the lessee thereof and approved by the mutual water company.
(b)CA Public Utilities Code § 2705(b) May deliver water at cost to any land leased by a stockholder, shareholder, or member of the mutual water company to a person not a stockholder, shareholder or member thereof, provided the lease is in writing signed by the stockholder, shareholder or member and the lessee of the land and approved by the mutual water company.
(c)CA Public Utilities Code § 2705(c) May transfer water or water rights to, or exchange water or water rights with, another entity pursuant to state or federal law, or both.
(d)CA Public Utilities Code § 2705(d) In a bona fide water emergency, but for no longer than the existence of the emergency, may deliver water at cost to any person owning or leasing real property located within or adjacent to the service area of the mutual water company, provided that the water is delivered pursuant to a written contract signed by the mutual water company and the person to whom the water is delivered.
(e)CA Public Utilities Code § 2705(e) May deliver water pursuant to any contract for water service made:
(1)CA Public Utilities Code § 2705(e)(1) In settlement of litigation involving disputed water rights or any judgment in the litigation.
(2)CA Public Utilities Code § 2705(e)(2) In consideration of the conveyance of a well, water right, or easement for water distribution purposes.
All of these leases and contracts shall be preserved for a period of 10 years by a mutual water company and shall be subject to inspection by the commission.
The term “cost” as used in this section shall be construed to mean without profit.

Section § 2705.5

Explanation

This law explains that if someone operates a mobile home park or an apartment complex and supplies water to residents using submeters, they’re not considered a public utility, and the Public Utilities Commission doesn’t regulate them. But, there's a catch—they must charge each resident the same rate they would pay if getting water directly from a water company, or they need to follow a specific rule from the Civil Code.

Any person or corporation, and their lessees, receivers, or trustees appointed by any court, that maintains a mobilehome park or a multiple unit residential complex and provides, or will provide, water service to users through a submeter service system is not a public utility and is not subject to the jurisdiction, control, or regulation of the commission if each user of the submeter service system is charged at the rate which would be applicable if the user were receiving the water directly from the water corporation, or if management of the mobilehome park complies with subdivision (c) of Section 798.40 of the Civil Code.

Section § 2705.6

Explanation

If a mobile home park provides water to its tenants using its own resources, it typically isn't considered a water company. But, if 10% of tenants file a complaint about unfair water rates or poor service, the commission can step in to review and potentially order changes.

Tenants must have lived in the park within the last five years to complain. Parks must notify tenants, in multiple languages, about how to complain each time water rates or services change. If parks don't provide notice, they could face penalties. If unfair rates have been charged since late 2012, the park might have to repay the affected tenants with interest, unless the rates were previously deemed fair by the commission.

(a)Copy CA Public Utilities Code § 2705.6(a)
(1)Copy CA Public Utilities Code § 2705.6(a)(1) A mobilehome park that provides water service only to its tenants from water supplies and facilities that it owns, not otherwise dedicated to public service, is not a water corporation. However, if a complaint is filed with the commission by tenants of the mobilehome park that represent 10 percent or more of the park’s water service connections during any 12-month period, claiming that the water rates charged by the park are not just and reasonable or that the service is inadequate, the commission shall have jurisdiction to determine the merits of the complaint and shall determine, based on all the facts and circumstances, whether the rates charged are just and reasonable and whether the service provided is adequate.
(2)CA Public Utilities Code § 2705.6(a)(2) The numerical threshold of persons may include former or current tenants, or both.
(3)CA Public Utilities Code § 2705.6(a)(3) A person shall not file a complaint against a mobilehome park pursuant to paragraph (1) if that person has not resided in that mobilehome park within the last five years.
(b)CA Public Utilities Code § 2705.6(b) Complaints filed pursuant to subdivision (a) are subject to this code and to the Rules of Practice and Procedure of the commission governing complaints and commission investigations.
(c)Copy CA Public Utilities Code § 2705.6(c)
(1)Copy CA Public Utilities Code § 2705.6(c)(1) A mobilehome park, as described in subdivision (a), shall provide written notice to each of the mobilehome park’s tenants to inform those tenants of their right to, and how to, file a complaint with the commission about the water rates charged or the service provided by the mobilehome park. With respect to the notice, the mobilehome park shall do all of the following:
(A)CA Public Utilities Code § 2705.6(c)(1)(A) Provide the notice to new tenants at the time the tenants establish residence within the mobilehome park.
(B)CA Public Utilities Code § 2705.6(c)(1)(B) Provide the notice to tenants each time the mobilehome park changes water rates or service.
(2)Copy CA Public Utilities Code § 2705.6(c)(2)
(A)Copy CA Public Utilities Code § 2705.6(c)(2)(A) Notwithstanding any other law, the notice provided by a mobilehome park pursuant to paragraph (1) shall be written in English, the languages set forth in subdivision (b) of Section 1632 of the Civil Code, and the language or languages of primary communication with the residents receiving the notice.
(B)CA Public Utilities Code § 2705.6(c)(2)(A)(B) The commission shall prepare and make available on its Internet Web site an approved notice in English and the languages set forth in subdivision (b) of Section 1632 of the Civil Code. In providing notice pursuant to paragraph (1), a mobilehome park shall use the then-current language made available by the commission pursuant to this subparagraph.
(3)CA Public Utilities Code § 2705.6(c)(3) A mobilehome park that fails to provide the notice required by this subdivision shall be subject to the penalties established in Section 2111.
(d)CA Public Utilities Code § 2705.6(d) The commission may afford rate relief or may order the mobilehome park to improve its water supply, facilities, and services on those terms that it finds just and reasonable, or both.
(e)CA Public Utilities Code § 2705.6(e) If the commission finds, after investigation, that the mobilehome park has charged an unjust or unreasonable rate in violation of this section subsequent to December 31, 2012, the commission shall order the mobilehome park to reimburse the complainants and any other current and former tenants affected by the rate, if no discrimination will result from the reimbursement. Reimbursement shall be calculated from the first date of collection of the unjust or unreasonable rate, with interest. The commission shall not make an order for the payment of reimbursement upon the ground of unjustness or unreasonableness if the rate in question has been previously declared by formal finding of the commission to be reasonable. The commission shall not recognize the assignment of a reimbursement claim except assignments by operation of law as in cases of death, insanity, bankruptcy, receivership, or order of court.
(f)CA Public Utilities Code § 2705.6(f) The public advisor created pursuant to Section 321 and necessary staff of the commission shall assist the complainants.

Section § 2706

Explanation

This California law explains that entities selling or delivering water exclusively to a water conservation district are not considered public utilities. This also applies to those who lease ditches or water transmission facilities to such districts. It specifies that these activities do not mean those entities have committed their water rights or property for public use.

Additionally, entities selling or providing water at wholesale to public agencies or water utility providers are also not considered public utilities if their water isn't dedicated for public use. Mutual water companies are excluded from these rules.

(a)CA Public Utilities Code § 2706(a) Any person, firm, or corporation, their lessees, trustees, receivers or trustees appointed by any court, who sells or delivers water exclusively to a water conservation district organized under the laws of the state or who leases or otherwise permits the use of ditches or other water transmission facilities exclusively by the district is not a public utility within the meaning of this chapter. No portion of the works, property, or water rights of any of those parties shall be deemed dedicated to a public use by reason of selling or delivering water to a water conservation district.
(b)CA Public Utilities Code § 2706(b) Any person, firm, or corporation with water that is not being used to supply water to a public water system, or that is not otherwise dedicated to public use, that sells, leases, transfers, or otherwise delivers the water at wholesale to any public agency or to a water corporation providing water utility service, is not a public utility within the meaning of this chapter.
(c)CA Public Utilities Code § 2706(c) This section does not apply to mutual water companies.

Section § 2707

Explanation

This section allows the commission to conduct hearings and make determinations about who owns, controls, operates, or manages water systems or supplies in the state. Their findings on factual matters are final and cannot usually be challenged, except in certain situations outlined in another part of the law.

For the purpose of determining the status of any person, firm, or corporation, their lessees, trustees, receivers or trustees appointed by any court, owning, controlling, operating, or managing any water system or water supply within this state, the commission may hold hearings and issue process and orders in the manner and to the same extent as provided in Part 1 (commencing with Section 201), and the findings and conclusions of the commission on questions of fact arising under this chapter are final and not subject to review, except as provided in Part 1 (commencing with Section 201).

Section § 2708

Explanation

This law allows the state commission to regulate water companies that are unable to provide water to additional consumers without negatively impacting existing ones. After a hearing, if the commission finds that a water company's system is at capacity, it can order the company to stop providing water to new consumers. Conversely, if adding new consumers won't harm the current supply, the commission can allow the company to serve more people.

Whenever the commission, after a hearing had upon its own motion or upon complaint, finds that any water company which is a public utility operating within this State has reached the limit of its capacity to supply water and that no further consumers of water can be supplied from the system of such utility without injuriously withdrawing the supply wholly or in part from those who have theretofore been supplied by the corporation, the commission may order and require that no such corporation shall furnish water to any new or additional consumers until the order is vacated or modified by the commission. The commission, after hearing upon its own motion or upon complaint, may also require any such water company to allow additional consumers to be served when it appears that service to additional consumers will not injuriously withdraw the supply wholly or in part from those who theretofore had been supplied by such public utility.

Section § 2709

Explanation

This law allows a regulatory body, called the commission, to ask a water company to submit a written description of the areas and land it serves with water.

The commission may require any water corporation to file with the commission a statement in writing defining and describing the lands and territory to be supplied by the corporation with water.

Section § 2710

Explanation

This law says that if a water corporation in California has promised to serve more customers or land than it can actually handle, based on certain required documents, the commission can step in. After a hearing, they may limit the number of customers or the amount of land the company can serve to make sure they provide adequate service.

When it appears from (a) the statement required by Section 2709, (b) the articles of incorporation of any water corporation, or (c) any notice of appropriation of water required by law, that a water corporation has undertaken to supply more consumers or a greater number of acres than it can adequately supply, the commission may require the corporation to limit the number of consumers or acres of land which it has undertaken to supply or which is set out in its articles of incorporation or notices of appropriation to such a limited number of consumers or acres of land as the commission finds, after hearing, that the water corporation may adequately supply.

Section § 2711

Explanation

This law explains that if a corporation has supplied water to a territory before, certain exemptions don't apply. During water shortages, the corporation must treat all its consumers equally, sharing its water supply evenly without favoring anyone, whether they joined voluntarily or were required to be served.

Section 2710 does not apply to territory or consumers which have once been served by the corporation. As between consumers who have been voluntarily admitted to participate by the corporation in its supply of water or required to be supplied by an order of the commission, in times of water shortage the corporation shall give no priority or preference but shall apportion its supply ratably among its consumers.

Section § 2712

Explanation

This law makes it clear that nothing in Section 2701 allows public utilities to create contracts that would prevent the State or the appropriate regulatory bodies from controlling their rates and services. Essentially, utilities cannot use contracts to sidestep regulation.

“Whether under contract or otherwise” as used in Section 2701 is not to be construed as authorizing a contract by a person or corporation defined in this chapter as a public utility which in anywise deprives the State or the commission or other competent authority of power to regulate the rates and service of any such public utility.

Section § 2713

Explanation

This law states that water companies regulated by the commission can't charge fire service providers for water used in firefighting unless there's a written agreement. These companies must supply water for fire protection in emergencies within their service area. However, they can charge others (individuals or properties) for these services, provided it's allowed by other laws. 'Entity providing fire protection service' includes cities, counties, fire districts, or any public or private organization offering firefighting services.

(a)CA Public Utilities Code § 2713(a) No water corporation subject to the jurisdiction and control of the commission and the provisions of Part 1 (commencing with Section 201) of this division shall make any charge upon any entity providing fire protection service to others for furnishing water for such fire protection purposes or for any costs of operation, installation, capital, maintenance, repair, alteration, or replacement of facilities related to furnishing water for such fire protection purposes within the service area of such water corporation, except pursuant to a written agreement with such entity providing fire protection services. A water corporation shall furnish water for fire protection purposes to the extent of its means and as a condition of a certificate of public convenience and necessity, in case of fire or other great necessity, within the boundaries of the territory served by it for use within such territory.
(b)CA Public Utilities Code § 2713(b) The provisions of subdivision (a) shall not restrict or limit a water corporation furnishing water for fire protection purposes from levying charges for water service or facilities, including water for fire protection purposes, on any person, property, or entity, whether public or private, other than on an entity providing fire protection service.
Such charges shall be collected from such other persons, property, or entities pursuant to existing provisions of law which authorize such charges, or from an entity providing fire protection services only pursuant to a written agreement authorizing such charges.
(c)CA Public Utilities Code § 2713(c) For the purposes of this section, “entity providing fire protection service” means a city, county, city and county, whether general law or chartered, and a fire company, fire protection district, or any other person, association, company, corporation, special district, municipal corporation, or any other public or private entity, which public or private entity or person provides fire protection services to any other public or private entity or person.

Section § 2714

Explanation

This law states that a water company cannot make a new tenant pay for any unpaid water bills left by a previous tenant. However, the company can require new water services to be billed to the landlord or property owner instead.

No water corporation furnishing water for residential use to a tenant shall seek to recover any charges or penalties for the furnishing of water to or for the tenant’s residential use from any subsequent tenant on account of nonpayment of charges by a previous tenant. The water corporation may, however, require that service to subsequent tenants be furnished on the account of the landlord or property owner.

Section § 2715

Explanation

Large water corporations with over 10,000 service connections must keep a public archive on their website of all advice letters—whether pending, approved, or rejected—for two rate case cycles or six years, whichever is shorter. They need to provide an easy-to-find link to each advice letter and keep them organized in numerical order. The company can maintain these letters either on a standalone site or alongside a list of current letters. There must also be a link to the commission’s advice letter index on the company's website. This rule applies to advice letters from January 1, 2019, onward, including all related documents unless marked confidential.

(a)CA Public Utilities Code § 2715(a) A water corporation with more than 10,000 service connections shall maintain on its Internet Web site an archive of all pending, approved, or rejected advice letters for a period of two rate case cycles from the date the advice letter is submitted or for six years, whichever is shorter, and shall do all of the following:
(1)CA Public Utilities Code § 2715(a)(1) Provide a direct link from its Internet Web site to each advice letter, making the information contained there available to the public.
(2)CA Public Utilities Code § 2715(a)(2) Maintain advice letters in numerical order. The advice letters may be retained as a stand-alone site. The water corporation may combine the list with a list of current advice letters that have been transmitted for filing, or are filed, pending, protested, or otherwise active.
(3)CA Public Utilities Code § 2715(a)(3) Include a link to the commission’s index of advice letters on the water corporation’s Internet Web site.
(b)CA Public Utilities Code § 2715(b) For the purposes of this section, “advice letter” means an advice letter pending, approved, or rejected on or after January 1, 2019, and includes its concurrently submitted cover sheets, attachments, service lists, and exhibits, to the extent they are not identified as confidential.