Public Utilities Code section 701.10

The policy of the State of California is that rates and charges established by the commission for water service provided by water corporations shall do all of the following:

(a)

Provide revenues and earnings sufficient to afford the utility an opportunity to earn a reasonable return on its used and useful investment, to attract capital for investment on reasonable terms and to ensure the financial integrity of the utility.

(b)

Minimize the long-term cost of reliable water service to water customers.

(c)

Provide appropriate incentives to water utilities and customers for conservation of water resources.

(d)

Provide for equity between present and future users of water service.

(e)

Promote the long-term stabilization of rates in order to avoid steep increases in rates.

(f)

Be based on the cost of providing the water service including, to the extent consistent with the above policies, appropriate coverage of fixed costs with fixed revenues.

Source: Section 701.10, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=PUC§ionNum=701.­10.­ (updated Jan. 1, 1993; accessed Nov. 3, 2025).

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Verified:
Nov. 3, 2025

§ 701.10's source at ca​.gov