California American Water Applies for New Revenue to Fund Infrastructure and Service Improvements

Request reinforces company’s commitment to providing safe, reliable and affordable water and wastewater service

SAN DIEGO–(BUSINESS WIRE)–California American Water today submitted a proposed application for a rate adjustment in each of its service areas for 2024 through 2026 to continue providing safe and reliable service. The company continues to make needed investments to replace aging infrastructure, comply with water quality and environmental regulations and meet customers’ water and wastewater service needs. The new rates would take effect January 1, 2024, pending approval by the California Public Utilities Commission (CPUC).

This application, which the company is required to submit every three years, is seeking to raise revenue by approximately $95 million over three years, beginning with a $54-million increase proposed for January 1, 2024. This increase is based on 2024 authorized revenues calculated at current rates. Specific increases for each service area will be addressed in the final application filing in July 2022.

The request includes approximately $585 million for approved and forecasted infrastructure improvements for 2022-2025 that will help maintain high-quality water service, as well as renew and replace water treatment facilities, pumps and pipelines.

“Our application balances the infrastructure investment and operations needed to maintain sustainable water and wastewater systems while addressing affordability and environmental sustainability,” said Kevin Tilden, President of California American Water. “This proposal seeks to continue to provide customers excellent value for their service and high-quality water and wastewater service.”

The infrastructure investments, which include upgrades to water distribution systems, water treatment facilities, storage tanks, meters and pumping stations, are necessary to maintain and improve water quality, reliability, fire protection and customer service for the communities served by California American Water.

The company will continue its commitment to conservation-oriented rate designs, which reward customers who conserve water with lower rates. The application also requests continuation of the company’s Customer Assistance Program and crisis assistance services to help customers experiencing financial hardship maintain their access to water service.

The increased rates proposed in the application are a request only and may change between the submittal date of May 2nd and the final filing in July 2022. The CPUC will make the final decision regarding the actual increase. The CPUC will hold Public Participation Hearings to seek input from the public. California American Water will notify customers of the time, date and location once the hearings are set. This process will include independent review and public evidentiary hearings and rates will remain unchanged until this request undergoes extensive public scrutiny by the CPUC. The process is expected to conclude in late 2023, with new rates taking effect by January 1, 2024.

About California American Water: California American Water, a subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and wastewater services to more than 725,000 people. Information regarding California American Water’s service areas can be found on the company’s website

About American Water: With a history dating back to 1886, American Water (NYSE: AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit and follow American Water on Twitter, Facebook and LinkedIn.


California American Water Media
Evan Jacobs

California American Water

Director of External Affairs

Phone: 707-495-6135