§ 5040 Utility Rate Setting Rules

Health and Safety Code·California

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Key Takeaways

•The people in charge set fair prices for using and maintaining buildings or services.
•The prices can change over time if needed.
•The money from these prices must cover the costs of running, fixing, and paying for the buildings or services.

Example

You rent an apartment in a building with shared laundry machines.

The landlord sets a fair price for using the laundry machines. This price might go up a little each year to cover the cost of fixing the machines, paying for water and electricity, and paying back any loans used to buy the machines.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 5040 Utility Rate Setting Rules

The governing body shall establish just and equitable rates for the use and maintenance of the works, to be paid by the person leasing or occupying the building or premises served thereby or that in any way uses or is served by the works, and may change and readjust the rates from time to time. The rates shall be sufficient in each year for the payment of the proper and reasonable expenses of operation, repair, replacement, and maintenance of the works, and for payment of the principal of and the interest on the bonds. (Amended by Stats. 1963, Ch. 1659.)

Last verified: January 24, 2026

Key Terms

benefits maintenance operation replacement

References

Official text at leginfo.legislature.ca.gov
California Legislature. Health and Safety Code. Section 5040.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References