Overall revenue increase less than two percent. Plans include $4.06 million in Monterey to replace aging water mains
The California Public Utilities Commission approved new rates for California American Water customers throughout the state. The average revenue increase statewide is 1.2 percent in 2015 and approximately 2 percent each in 2016 and 2017. Customers will receive notifications of how this decision will impact their bills in the coming weeks as new rates are implemented. Some customers will see small rate decreases while other will see modest increases.
“This decision is the product of open public proceedings that examined and deliberated every aspect and financial detail of our original rate request over the course of the last two years,” said Robert MacLean, President of California American Water.
The CPUC decision includes funding for over $126 million in infrastructure replacement and improvements over the next three years. Some of the major projects include:
• $4.5 million in the Sacramento District to enlarge critical piping to allow for more efficient water transmission
• $4.06 million in Monterey to replace over 20,000 feet of aging water mains
• $2.19 million to refurbish the Potrero water storage reservoir in the Ventura District, lengthening the life of the asset and improving water supply reliability
• $3.89 million to combine domestic and irrigation systems in Los Angeles
“This decision will allow us to continue making infrastructure investments to renew and improve the facilities that serve our customers,” said MacLean. “It also maintains a robust budget for our conservation programs and services that will help support our customers’ efforts to reduce water use during this historic drought.”
The decision increases California American Water’s total annual revenue statewide from $203,933,000 to $206,415,000 and will have an average impact of 1.3 percent for residential customers around the state.
The decision also authorizes $5,950,302 in spending to continue a variety of conservation programs and rebates over the next three years. Programs include offering low-flow showerhead and hose nozzles, sink aerators, leak detection kits and many other types of water-saving devices to all customers free of charge. The company also provides rebates for qualified water-efficient appliances like clothes washers and low-flow toilets as well as water efficient landscaping.
California American Water offers customers a free home or business water use survey, where, upon request, the company will dispatch a conservation specialist to the customer’s home to look for leaks and recommend other areas of water savings. These surveys can help people reduce their water use and water bill.
For low-income customers, the company proudly offers Low Income Ratepayer Assistance, a program designed to assist those experiencing financial difficulties in paying their water bill. Customers can find out more by calling (888) 237-1333 or visiting our website at www.californiaamwater.com.
In the coming weeks California American Water will begin implementing the new rates. Customers will receive district specific communications about changes to their rates. As part of the implementation processes other outstanding costs for changes to water production costs, purchased water and energy costs and deferred revenue will be included. Customers should also expect to see rate adjustments in 2016 and 2017.