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California American Water files rate request for $750 million in infrastructure upgrades

  • California American Water files rate request for $750 million in infrastructure upgrades

About the entity

American Water
American Water provides high-quality water and wastewater services to approximately 15 million people in more than 1,600 communities in the United States as well as parts of Canada.

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California American Water has filed a request with the California Public Utilities Commission (CPUC) for new rates, reflecting approximately $750 million of water and wastewater system investments completed and planned from 2025 through 2028. The request reinforces the company’s commitment to replacing aging infrastructure and continuing to provide safe, clean, reliable and affordable service in compliance with environmental regulations for the benefit of customers.

“Our commitment to long-term investments in our water and wastewater systems helps ensure we deliver high-quality service across California,” said Kevin Tilden, President of California American Water. “Investing in our infrastructure helps us make sure our customers have safe and healthy water when they need it.”

Among the infrastructure improvements included in the request are new water treatment plants, the replacement of aging water pipelines and the upgrading of storage tanks, pumping stations, hydrants, meters and more.

If the company’s proposed rates are approved as requested in today’s filing, the water bill for the average residential customer would range between an approximately $3 decrease and a $17 increase per month, depending on their service area, beginning in January 2027. The company’s last general rate case was filed in July 2022.

The new rates proposed in today’s filing are only requests. Following CPUC’s approval, customers will be informed of the approved rates by mail and on the company’s website.

California American Water 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. Additional customer assistance offered by the company includes conservation programs, payment plans, budget billing, and crisis assistance. More information about current programs statewide can be found by clicking the Customer Assistance Program link here.

The CPUC’s 18-month statutory rate review process is a thorough examination of the company’s proposal that offers multiple opportunities for customer involvement. Customers can participate through written comments, attendance at public hearings and through consumer advocacy organizations that participate in the proceedings. For more information on the company’s rate proposal and to learn how customers may participate in this process, visit the californiaamwater.com rates information page here.

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