California Public Utilities Commission Adopts Decision on California Water Service’s 2021 General Rate Case and Infrastructure Improvement Plan

SAN JOSE, Calif., March 11, 2024 (GLOBE NEWSWIRE) -- The California Public Utilities Commission (CPUC) issued a decision on March 7, 2024 on the 2021 General Rate Case and Infrastructure Improvement Plan for California Water Service (Cal Water), the largest subsidiary of California Water Service Group (NYSE: CWT). The decision marks the end of an extensive review of the utility’s water system improvement plans, costs, and rates.

The decision adopts a revised version of the alternate proposed decision issued January 24, 2024, and increases adopted revenues for 2023 by approximately $39.2 million, plus an inflation factor yet to be determined, retroactive to January 1, 2023. It also increases revenues by up to approximately $32.2 million for 2024 and $31.7 million for 2025, subject to the CPUC’s escalation earnings test and inflationary adjustments.

Importantly, the decision authorizes Cal Water to invest approximately $1.21 billion from 2021 through 2024 in water system infrastructure projects that are needed to continue providing safe, reliable water service to customers throughout California. This includes approximately $160 million of infrastructure projects that may be submitted for recovery via the CPUC’s advice letter process.

The CPUC’s decision approves a progressive rate design that is intended to provide budget stability while benefiting low-income and low-water-using customers by significantly decreasing the cost of the first units of water consumed and increasing the percentage of fixed costs that are recovered in the service charge.

“I am proud of our track record of prioritizing infrastructure projects that we believe are most critical to achieving our mission. From 2021 through 2023, we completed more than 85% of the projects previously approved by the CPUC, deferring the remaining projects in order to complete higher-priority projects such as wildfire hardening and water supply-reliability projects. In total, the Company spent nearly 100% of its approved capital budget. I’m pleased that the decision authorizes us to continue investing responsibly in our infrastructure,” said Chairman, President & Chief Executive Officer Martin A. Kropelnicki.