California Water News Daily Your Source For Water News in California
Last week, California Water Service Group (Cal Water) submitted its 2022-2024 infrastructure improvement plans for all of its California districts in its General Rate Case (GRC) filing with the California Public Utilities Commission (CPUC). The proposal also includes a new rate design that reflects the actual cost of service, with an effective date of January 2023.
Cal Water is proposing to invest $1.02 billion over the next four years; of that, $913.1 million is earmarked for new capital investments along with continued funding for capital projects begun in 2021 or earlier.
The plans call for replacing aging water pipelines, upgrades to withstand power outages and Public Safety Power Shutoff events, protecting customers from known and emerging water contaminants, and expand water supplies to ensure sustainability and wildfire hardening.
Cal Water’s proposed rate design changes that would improve revenue stability but provide a discounted unit rate to the first six units of water per month (approximately 150 gallons per day) for residential customers. In the proposal, this block of usage would be charged at 25% of the average rate. The CPUC has recognized this six-unit block as essential for basic needs.
“We remain steadfast in our commitment to protect our customers, and we have prepared these multi-year, proactive infrastructure improvement plans to ensure customers continue to have safe, clean water and reliable service, both during normal and drought years,” said Martin A. Kropelnicki, President and CEO. “Additionally, our proposed rate design returns us to a reasonable amount of revenue stability without the Water Revenue Adjustment Mechanism, while offering customers discounted volumetric charges for lifeline needs. We won’t cut corners on our customers’ health and safety, and we are committed to doing everything we can to maintain affordability and provide quality, service, and value.”
Cal Water is asking to increase revenues by $80.5 million (11.1%) in 2023; $43.6 million (5.4%) in 2024; and $43.2 million , or (5.1%) in 2025. According to Cal Water, if approved as filed, the average residential customer would pay an additional $5 per month.
The required filing begins an approximately 18-month review process by the CPUC, during which it determines approved projects and sets rates for the following three years.
