California American Water Applies for Water Resources Sustainability Plan

Decoupling tool will support conservation and infrastructure renewal

SAN DIEGO -- California American Water has supplemented its application to set new rates in each of its service areas for 2024 through 2026, which was originally filed in July 2022 with the California Public Utilities Commission (CPUC). The amended filing includes a proposal to strengthen customer protections through the use of a regulatory tool known as decoupling. Recent legislation passed by the Legislature and signed by Governor Newsom last year supports the use of ratemaking strategies like the Water Resources Sustainability Plan to promote conservation and infrastructure renewal while protecting ratepayers.

“Our request is good for customers and the environment,” said California American Water President Kevin Tilden. “It supports rewarding customers for conserving water while making investments to renew and improve our drinking water infrastructure. We will continue to provide customers with excellent value for their service and maintain our systems to supply high-quality water service.”

The filing has also been updated with more timely customer demand estimates and to reflect present rates approved by the CPUC effective January 1st, 2023. Under the amended filing, new rates would be effective January 1, 2024, pending approval by the CPUC. This spring, the CPUC is expected to hold public hearings virtually and in-person for customers around the state. Updated information about the Water Resources Sustainability Plan will be included in the notices customers receive prior to the hearings.

The application itself includes infrastructure renewals, wildfire mitigation, climate resiliency efforts and strengthening affordability programs in addition to the new Water Resources Sustainability Plan. One particular focus of the request is to improve the climate change resiliency of our systems. These measures include fire assessment analysis at company facilities around the state as well as active mitigation measures undertaken in some high-risk zones. The activities also include the bolstering of back-up generator power for use during emergencies like wildfires or Public Safety Power Shutoffs.

California American Water, a subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and wastewater services to more than 725,000 people. Information regarding California American Water’s service areas can be found on the company’s website

Media Contacts

Evan Jacobs

Director or External Affairs