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HomePublic Utilities CodeDiv. 1Pt. 1Ch. 4Art. 6§ 853 Public Utility Regulation Exemptions

§ 853 Public Utility Regulation Exemptions

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

§ 853 Public Utility Regulation Exemptions

Key Takeaways

  • •This law mostly applies to companies that provide services like water, gas, or electricity to the public.
  • •Some small water companies (with 10,000 or fewer customers) can be passed to family members without extra approval if the owner dies.
  • •Big changes or sales by these companies usually need approval from the government to make sure customers are protected.
  • •If a company wants to do something big (like sell assets), they might have to follow extra rules to check how it affects the environment.

Example

A small water company owner passes away and leaves the company to their child.

The child can take over the company without asking the government for permission first, as long as the company serves 10,000 or fewer customers.

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

Official Source
View on CA.gov

§ 853 Public Utility Regulation Exemptions

(a) This article does not apply to any person or corporation which transacts no business subject to regulation under this part, except performing services or delivering commodities for or to public utilities or municipal corporations or other public agencies primarily for resale or use in serving the public or any portion thereof, but shall apply to any public utility, and any subsidiary or affiliate of, or corporation holding a controlling interest in, a public utility, if the commission finds, in a proceeding to which the public utility is or may become a party, that the application of this article is required by the public interest. (b) The commission may from time to time by order or rule, and subject to those terms and conditions as may be prescribed therein, exempt any public utility or class of public utility from this article if it finds that the application thereof with respect to the public utility or class of public utility is not necessary in the public interest. The commission may establish rules or impose requirements deemed necessary to protect the interest of the customers or subscribers of the public utility or class of public utility exempted under this subdivision. These rules or requirements may include, but are not limited to, notification of a proposed sale or transfer of assets or stock and provision for refunds or credits to customers or subscribers. (c) The provisions of Sections 851 and 854 that prohibit any assignment, acquisition, or change of control without advance authorization from the commission, do not apply to the transfer of the ownership interest in a water utility, with 10,000 or fewer service connections, from a decedent to a member of the decedent’s family in the manner provided in Section 240 of the Probate Code or by a will, trust, or other instrument. (d) It is the intent of the Legislature that transactions with monetary values that materially impact a public utility’s rate base should not qualify for expedited advice letter treatment pursuant to this article. It is the further intent of the Legislature that the commission maintain all of its oversight and review responsibilities subject to the California Environmental Quality Act, and that public utility transactions that jurisdictionally require a review by the commission, as the lead agency, under the act should not qualify for expedited advice letter treatment pursuant to this article. An advice letter may be filed for transactions by the public utility if the lead agency has completed the appropriate review under the California Environmental Quality Act for the transaction, and the commission is the responsible agency under the act. The advice letter shall be subject to approval by resolution voted upon by the commission. (Amended by Stats. 2009, Ch. 370, Sec. 2. (AB 698) Effective January 1, 2010.)

Last verified: January 23, 2026

Key Terms

utilitycorporationacquisitionownershipregulationcommissionenvironmentalnet

Related Statutes

  • § 852 Public Utility Stock Acquisitions
  • § 854 Public Utility Mergers Approval
  • § 709.5 Telecom Market Competition Deadline
  • § 767.7 Telecommunications Infrastructure Sharing
  • § 790 Water Corporation Property Sale Reinvestment

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 853.
View Official Source