SAN JOSE, Calif., Oct. 9, 2002 -- California Water Service Group joins the California Water Association and other private water utilities in applauding the passage of Assembly Bill 2838, which was signed into law by Governor Gray Davis earlier this week.
AB 2838, authored by Assemblyman Joe Canciamilla, protects the ability of regulated water utilities to provide a reliable supply of high quality water by providing interim rate relief, subject to refund, if the California Public Utilities Commission (Commission) does not issue a decision on a requested rate increase within its established processing period.
Lengthy delays in processing rate cases have been costly to regulated water utilities. By allowing regulated water utilities to recover costs that are determined to be fair and reasonable by the Commission, AB 2838 will help preserve the financial integrity of regulated water utilities and provide the cash flow necessary to provide reliable, high quality water service.
According to California Water Service Group Chief Financial Officer Gerald F. Feeney, the bill is good news for water utilities, including Cal Water, which has experienced significant revenue losses due to regulatory delays.
"Cal Water normally files its general rate case applications in July, and the Commission's rate processing plan provides for a decision within ten months. When decisions are not issued in a timely manner, we cannot recover costs and our employees have fewer resources to meet the needs of our customers," Feeney said.
California Water Service Group is the parent company of California Water Service Company, Washington Water Service Company, New Mexico Water Service Company, and CWS Utility Services. The subsidiaries provide regulated and non-regulated water service to over 1.7 million people in 98 communities. The Company's common stock trades on the New York Stock Exchange under the symbol "CWT."
SOURCE: California Water Service Group
