California American Water said it reached a partial settlement in its statewide general rate case, setting a path for higher revenues in 2027 through 2029, though one issue remains unresolved.
Under the agreement, the company would be allowed to recover an additional $24 million in annualized water and wastewater revenue in 2027, followed by $21 million in 2028 and $22 million in 2029, assuming construction work in progress stays in rate base. The 2027 increase is notably below the company’s earlier revised request for $43 million above expected 2026 revenues, a difference of $19 million.
The settlement also changes customer aid terms. In central California, discounts for qualified residential customers would rise from 35% to 50% off the typical bill. In northern and southern California, the 25% discount remains in place. In addition, the multi-family assistance payment program pilot would expand to qualified residents of multi-family housing in Monterey County.
California American Water said it plans to implement the new rates on Jan. 1, 2027, after the California Public Utilities Commission issues its decision on the settlement and the remaining construction-work-in-progress issue.
The current rate case, filed on July 1, 2025, reflects about $750 million of ongoing water and wastewater system investments planned and completed from 2025 through 2028. The company said the request is tied to service for about 720,000 people in California. The market has reacted to these announcements by moving the company's shares 0.97% to a price of $126.75. For the full picture, make sure to review American Water Works's 8-K report.
