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HomePublic Utilities CodeDiv. 5Ch. 1Art. 1§ 10006 Public Utility Lease Limits

§ 10006 Public Utility Lease Limits

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 10006 Public Utility Lease Limits

This law says that any lease of a public utility cannot last longer than 15 years and must be awarded by public auction to the highest bidder.

Key Takeaways

  • •Leases of public utilities are limited to a maximum of 15 years.
  • •All such leases must be awarded through a public auction to the highest bidder.
  • •Any lease exceeding 15 years is not legally valid.

Example

A city wants to lease its water treatment plant to a private company for 20 years.

The city must first hold a public auction and can only sign a lease that lasts up to 15 years; a longer lease would be invalid.

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

Official Source
View on CA.gov

§ 10006 Public Utility Lease Limits

No lease of a public utility is valid for a period of more than 15 years, and all such leases shall be let to the highest bidder at public auction. (Enacted by Stats. 1951, Ch. 764.)

Last verified: January 11, 2026

Key Terms

leasepublic utility15 yearshighest bidderpublic auction

Related Statutes

  • § 10001 Municipal Public Utility Definition
  • § 10002 Municipal Public Utility Authority
  • § 10003 Municipal Utility Expansion Powers
  • § 10004 Municipal Utility Land Authority
  • § 10007 Utility Advertising Restrictions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 10006.
View Official Source