California American Water has filed a rate request with the California Public Utilities Commission for new rates, reflecting approximately $750 million of water and wastewater system investments completed and planned from 2025 through 2028. This represents a significant increase compared to the last general rate case filed in July 2022.
The infrastructure improvements included in the request encompass new water treatment plants, the replacement of aging water pipelines, and the upgrading of storage tanks, pumping stations, hydrants, and meters. If approved, the proposed rates would result in the water bill for the average residential customer ranging between an approximately $3 decrease and a $17 increase per month, depending on their service area, beginning in January 2027.
California American Water also offers its customer assistance program (CAP), which currently provides discounts of 25-35 percent to qualifying customers. As part of its rate filing, the company is proposing the expansion of the CAP and its multi-family building assistance program in the Monterey service area.
The California Public Utilities Commission's 18-month statutory rate review process offers multiple opportunities for customer involvement, including through written comments, attendance at public hearings, and participation by consumer advocacy organizations.
Today the company's shares have moved 2.48% to a price of $142.56. If you want to know more, read the company's complete 8-K report here.
