California Water Service to increase rates by 4% to improve infrastructure
(UI) – California Water Service (Cal Water), a subsidiary of California Water Service Group, has received a ruling in its General Rate Case (GRC) that approves modified interim rates effective beginning April 15, 2023. The ruling allows Cal Water to increase rates by 4% in most of its districts, so that the utility can continue to make infrastructure improvements intended to keep its systems safe and reliable.
Interim rates are allowed by Administrative Law Judges (ALJ) in California when a final decision is delayed beyond the first day new rates were scheduled to be effective. In Cal Water’s 2021 GRC filing, also known as its Infrastructure Improvement Plan, rates would have been effective on Jan. 1, 2023 had the CPUC issued a decision before then.
However, that proceeding has been delayed. The ALJ had previously approved an interim rates memorandum account beginning Jan. 1, 2023 without a rate increase. Interim rates, which can reduce the compounded effect of delayed recovery, are subject to refund or adjustment depending on the final rates approved.
“We appreciate the ALJ’s understanding that inflation impacts Cal Water as well as our customers, and that withholding an interim rate increase could impact customers in the future by requiring higher surcharges on top of anticipated rate increases,” said Martin A. Kropelnicki, Group President and CEO.
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