California Public Utilities Commission Approves Rate Increase for California Water Service Company

Strategic Insights -

The California Public Utilities Commission has issued a regulatory update authorizing California Water Service Company to increase its rates for water service by $140,558,101 or 17.1% in test year 2026. Additionally, the commission has approved rate increases of $74,162,564 or 7.7% on January 1, 2027, and $83,574,190 or 8.1% on January 1, 2028. This decision is based on the Rate Case Plan, which aims to implement the Commission's ratemaking policies.

Key Takeaways:

  • The California Public Utilities Commission has approved a rate increase of $140,558,101 or 17.1% for California Water Service Company in test year 2026.
  • The commission has also approved rate increases of $74,162,564 or 7.7% on January 1, 2027, and $83,574,190 or 8.1% on January 1, 2028.
  • The rate increase is based on the Rate Case Plan, which aims to implement the Commission's ratemaking policies.
  • The commission has adopted other related rulings and relief necessary to implement the ratemaking policies.
  • The update affects California Water Service Company and involves various parties, including the City of Bakersfield, the City of Carson, and the California Water Association.

Statistics:

  • Rate increase in test year 2026: $140,558,101 or 17.1%
  • Rate increase on January 1, 2027: $74,162,564 or 7.7%
  • Rate increase on January 1, 2028: $83,574,190 or 8.1%
  • Total affected parties: 23

Sources:

  • Before the California Public Utilities Commission of the State of California, Matter of the Application of California Water Service Company (U60W), Application 24-07-003 (Filed July 8, 2024)
  • CALIFORNIA WATER ASSOCIATION'S SUPPLEMENTAL RESPONSE TO THE MAY 30, 2025 ADMINISTRATIVE LAW JUDGE'S RULING REQUESTING ADDITIONAL INFORMATION, dated June 26, 2025