According to President and Chief Executive Officer Martin A. Kropelnicki, about 80% of the requested increase is attributable to capital improvements needed to improve water supply and upgrade infrastructure in the communities Cal Water serves.
“We need to continue to invest diligently in water supply sources, as well as the pipes, pumps, treatment plants, and other facilities that are needed to provide a safe, reliable water supply to our customers. We are proposing water system improvements totaling $693 million, which is the most significant driver of the requested increase,” he said.
The filing reflects Cal Water’s aggressive cost control measures, which include reduced benefits costs and freezing employee headcount for all positions except those required to make water supply and system improvements.
“Our team has worked hard to control our costs in all parts of our business, and this application shows that effort,” Kropelnicki said.
The filing begins an 18-month review process by the Commission, with new rates expected to become effective in early 2017. The Commission requires a General Rate Case filing every three years to ensure that rates reflect the actual costs of providing service, while allowing the Company a reasonable return on investment in water system infrastructure. The Commission has the authority to approve rate increases that are lower than requested, but not higher.
California Water Service Group is the parent company of California Water Service, Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, Inc., CWS Utility Services, and HWS Utility Services. Together these companies provide regulated and non-regulated water service to approximately 2 million people in more than 100 California, Washington, New Mexico, and Hawaii communities. Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.
Chico Taxpayers Association 
I tell ya, they are really going to stick it to the little people.
The PUC is going to let PGE change it’s tiered model resulting in fewer tiers and higher rates for the little people. (Of course those in the program where the gummit pays won’t care.)
Now another water increase. And garbage rates going up. And then next year prepare for every trough feeder coming out of the woodwork for a sales tax increase here. And I hear the DemoNcrats are going to unlease a number of tax increase ballot measures at the state level.
These pigs are doing all they can to kill off people like me and you.
I hear that!
(Of course those in the program where the gummit pays won’t care.)
I think they call that program CARE. Maybe they should call it Don’t CARE because if the gummits footing the bill do you care how high the rates go?
We knew it was coming, but damn, it’s hard to swallow! The citizens buckled up and are exceeding the required water conservation targets…only to hear that we will be “rewarded” for our good behavior by increased rates to keep the water companies afloat. How is this fair?! I’ve conserved. I use well under the minimum allowed in our city by about 50% and I can expect an increase on my bill for the trouble? I feel like going out and watering my dead lawn. Dang.
You said it Kelly.
According to my friend who is in contact with the CPUC and water company, Chico’s rate increase will be
19.1 % 2017
1.6% 2018
2.7% 2019
By the way, this is a new increase proposal, not the one the CPUC just approved last year.
19.1%?! WTH?! It’s just not right…Where is the incentive to save water? They should offer some sort of DISCOUNT if you manage to hit the conservation targets they set, not a increase which basically penalizes you for conserving. Just messed up.
I agree.
This morning I have some stuff to do on the stove, so I am trying to contact the CPUC about this latest rate case filed July 3. I keep getting the same recording – “we are not able to answer your call…” On Wednesday morning after 9:00?
I’m trying to get some first hand information from this agency that is supposed to exist to protect our interests. I know, I’m a masochist.