SAN JOSE, CA, July 7, 2015 -- On Friday, July 3, California Water Service Group's (NYSE: CWT) largest subsidiary, California Water Service Company (Cal Water), filed a General Rate Case requesting authorization from the California Public Utilities Commission (Commission) to increase rates to add revenues of $94.8 million in 2017, $23.0 million in 2018 and $22.6 million in 2019.
According to President and Chief Executive Officer Martin A. Kropelnicki, about 80 percent of the requested increase is attributable to capital improvements needed to improve water supply and upgrade infrastructure in the communities that 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," Kropelnicki said. "We are proposing water system improvements totaling $693 million, which is the most significant driver of the requested increase."
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.
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.
See also:
"California Water Service Group enters new $450M credit agreement"
"Cal Water signs agreement to provide recycled water to new Apple campus"
About California Water Service Group
California Water Service Group is the parent company of California Water Service Company, Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, Inc., CWS Utility Services, and HWS Utility Services, LLC. 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. For more information, visit www.calwatergroup.com.
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