SJW Group Announces the California Public Utilities Commission’s Approval of San Jose Water’s General Rate Case

San Jose Water (“the Company”), a wholly-owned subsidiary of SJW Group (NYSE: SJW), announced today that the California Public Utilities Commission (“CPUC”) approved its General Rate Case for the years 2022 through 2024.

The final decision approves the Amended Settlement Agreement between the Public Advocates Office and the Company. It authorizes rates designed to increase revenue approximately $25.1 million or 6.0% for 2022. The 2022 rate increase will become effective on November 1 bills. Rates and revenues for 2023 and 2024 will subsequently be determined based on authorized utility plant investments and the forecasted change in the consumer price index from the preceding year.

The final decision also authorizes San Jose Water to implement a surcharge to recover the revenue difference between interim and final rates for 2022. The authorized 2022 revenue increase, retroactive to January 1 until the implementation of the new rates, will be included in the surcharge.

Key highlights of the decision include:

• A three-year capital budget for utility plant investments of $350 million;
• Greater revenue recovery from the fixed charge;
• Further alignment between actual vs authorized consumption;
• A Full Cost Balancing Account for water supply and energy consumption; and,
• Recovery of $18.2 million from various existing balancing and memorandum accounts.

“We appreciate the CPUC’s approval of our General Rate Case which recognized the continued need to invest in our water system. This is critical to us continuing to provide reliable water service and public health protection to the one million residents of the greater San Jose metropolitan area,” said Andy Gere, President and COO. “We take this responsibility very seriously, and work each and every day to make timely, prudent investments and ensure the delivery of high quality water at affordable rates to our customers and the communities where we live, work and serve.”

Importantly, the final decision recognized San Jose Water’s efforts towards environmental and social justice (ESJ) goals adopted in the CPUC’s February 2019 Environmental and Social Justice Action Plan. Specifically, it acknowledged the Company’s efforts to serve all customers including many who are part of ESJ communities through the:

• Reduction of greenhouse gas emissions through the accelerated electrification of its fleet, green energy generation, and continued optimization of its energy reduction program;
• Replacement of lead service lines;
• Fluoridation of a portion of its groundwater supply serving the most vulnerable populations;
• Investments to improve water quality; and,
• Mitigation of the wildland fuel hazard through its Wildfire Mitigation Plan

In addition, for income eligible customers, SJW offers its CAP program, providing discounts on bills, along with access to the state-funded LIHWAP (Low Income Household Water Assistance Program), administered locally by Sacred Heart Community Services.