California Water News Daily Your Source For Water News in California
Earlier this month California American Water (Cal Am) filed an application for a rate adjustment for 2024 through 2026 with the California Public Utilities Commission (CPUC). If approved, the new rates would take effect January 1, 2024.
Cal Am is required to submit an application every three years, this time, seeking to raise revenue by approximately $95 million over the next three years. According to the company, specific increases for each service area will be noted in the final application filing this July.
Cal Am’s request includes approximately $585 million for approved and forecasted infrastructure improvements for 2022-2025 that will help maintain high-quality water service, as well as renew and replace water treatment facilities, pumps and pipelines.
“Our application balances the infrastructure investment and operations needed to maintain sustainable water and wastewater systems while addressing affordability and environmental sustainability,” said Kevin Tilden, President of California American Water. “This proposal seeks to continue to provide customers excellent value for their service and high-quality water and wastewater service.”
The infrastructure investments, which include upgrades to water distribution systems, water treatment facilities, storage tanks, meters and pumping stations, are necessary to maintain and improve water quality, reliability, fire protection and customer service for the communities served by California American Water.
The increased rates proposed in the application are a request only and may change between now and the final filing in July. The CPUC will make the final decision regarding the actual increase. The CPUC will hold Public Participation Hearings to seek input from the public.
The process is expected to conclude in late 2023, with new rates taking effect by January 1, 2024.
