CA SB1364

Extends Public Utilities Commission inspection authority to water corporations with 2,000 or more service connections, allowing inspection of accounts, books, and documents of subsidiaries, affiliates, and holding corporations.

Requires water corporations with more than 2,000 service connections to include estimated rate impacts on various customer classes in rate change notices, and authorizes the commission to require notification of general rate case outcomes within 60-90 days.

Mandates annual reporting by water corporations with more than 2,000 service connections on significant transactions with subsidiaries, affiliates, and holding corporations, including cost allocation and transfer pricing basis.

Requires periodic audits of significant transactions between water corporations with more than 2,000 service connections and their subsidiaries or affiliates, with auditors selected by either the commission or the corporation.

Authorizes the commission to impose civil penalties up to three times imprudent payments made by water corporations with more than 2,000 service connections to subsidiaries or affiliates in violation of commission rules or orders.