California American Water finalizes application for new revenue to fund infrastructure and service improvements
Approval of this application will allow the company to continue funding improvements to maintain quality service to its customers and address the need to replace and upgrade water infrastructure.
SAN DIEGO, JULY 4, 2016 -- California American Water has filed its application to set new rates in each of its service areas with the California Public Utilities Commission. The application will set rates in 2018, 2019 and 2020. The new rates would go into effect on January 1, 2018.
"Our updated rates will continue to provide our customers with quality water through improved water infrastructure," said California American Water President Rob MacLean. "With most of our customers paying about a penny a gallon, more than $129 million in new capital investments in 2018 and 2019, such as improved water mains, pumps and tanks, will help increase water quality for residential use and for fire protection. These updates will also encourage conservation while keeping the cost of water relatively low."
The application seeks a revenue increase statewide of $51 million over the three-year period. The increase in the first year (effective January 1, 2018) would be $35 million over 2016 revenues at current authorized rates. While this proposal will affect customers differently based on where they live and how much water they use, for most customers the increase will be pennies per day.
The rate increase will vary by operating district, and customers will be notified about the proposed change.
The company will continue a commitment to conservation or tiered rates, which will reward customers who conserve water with lower rates and will continue to offer a comprehensive conservation program and low income assistance program.
"Our customers around the state have done a tremendous job saving water during the drought," MacLean said. "Our program offers rebates on water saving appliances and free water saving devices. We offer our customers free water wise surveys where our conservation representatives will help them find ways to save water in their homes. We also provide payment assistance for qualifying customers who need assistance with their bill."
California American Water, a subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and/or wastewater services to more than 615,000 people.
Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. Marking its 130th anniversary this year, the company employs more than 6,700 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found at www.amwater.com.