(b) Except as otherwise provided in this section and Section 9608, and notwithstanding any other provision of law, an irrigation district that offered electrical service to retail customers as of January 1, 1999, may not construct, lease, acquire, install, or operate facilities for the distribution or transmission of electricity to retail customers located in the service territory of an electrical corporation providing electrical distribution services, unless the district has first applied for and received the approval of the commission and implements its service consistent with the commission’s order. The commission shall find that service to be in the public interest and shall approve the request of a district to provide distribution or transmission of electricity to retail customers located in the service territory of an electrical corporation providing electrical distribution service if, after notice and hearing, the commission determines all of the following:

1. (1) The district will provide universal service to all retail customers who request service within the area to be served, at published tariff rates and on a just, reasonable, and nondiscriminatory basis, comparable to that provided by the current retail service provider.

2. (2) If the area the district is proposing to serve is either of the following:

   1. (A) Is within the district’s boundaries but less than the entire district, the area to be served includes a percentage of residential customers and small customers, based on load, comparable to the percentage of residential and small customers in the district, based on load.
   2. (B) Includes territory outside the district’s boundaries, in which case the territory outside the district’s boundaries must include a percentage of residential customers and small customers, based on load, comparable to the percentage of residential and small customers in the county or counties where service is to be provided, based on load.
3. (3) Service by the district will be consistent with the intent of the state to avoid economic waste caused by duplication of facilities as set forth in Section 8101.
4. (4) Service by the district will include reasonable mitigation of any adverse effects on the reliability of an existing service by the electrical corporation.
5. (5) The district has established, funded, and is carrying out public purpose and low-income programs comparable to those provided by the current electric retail service provider.
6. (6) That district’s tariffed electrical service rates, exclusive of commodity costs, will be at least 15 percent below the tariffed electrical service rates, exclusive of commodity costs and nonbypassable charges under Sections 367, 368, 375, 376, and 379, of the electrical corporation for comparable services.
7. (7) Service by the district is in the public interest.