California Water Service subsidiary plans to invest $1.6B in California systems

California Water Service submitted Infrastructure Improvement Plans for its California districts from 2025-2027 in its General Rate Case filing with the California Public Utilities Commission. The application also proposes a Low-Use Water Equity Program, which would decouple revenue from water sales, to assist low-water-using, lower-income customers. The required, triennial filing begins an approximately 18-month review process by the CPUC, an independent state agency, which will analyze the Infrastructure Improvement Plans, operating budget proposals, and Low-Use Water Equity Program to establish water rates for 2026-2028 that reflect the actual cost of providing safe, reliable water service. Associated rates set by the CPUC would become effective no sooner than January 2026. In the plans, Cal Water proposes to invest more than $1.6 billion in its districts from 2025-2027, including approximately $1.3 billion of newly proposed capital investments. About 46% of the proposed new infrastructure improvements would replace aging water pipelines, which is designed to enhance water supply reliability to support customers’ and firefighters’ everyday and emergency needs. The plans also include, among other projects: Water quality upgrades to treat for existing and newly regulated contaminants. Infrastructure replacements to help pump and deliver water reliably. Equipment such as generators to help withstand power outages and shutoffs, and solar installation projects to help reduce Cal Water’s dependency on the electric power grid and its environmental footprint. Physical and cyber security and safety enhancements to help protect facilities, customers, and employees. Water supply initiatives to help safeguard long-term reliability and sustainability of water sources. Advanced Metering Infrastructure to aid conservation efforts and enhance water-use efficiency. Cal Water’s proposed Low-Use Water Equity Program would decouple revenue from water sales across its regulated service areas. The program is designed to work in conjunction with Cal Water’s proposed progressive, four-tier rate design and sales forecast proposals to enhance affordability-particularly for low-use and low-income customers-plus reinforce conservation goals, while providing the utility an opportunity to recover its authorized revenue requirement in a timely manner. To support these investments, Cal Water has proposed to the CPUC to increase 2026 total revenue by $140.6 million, or 17.1%. This increase is based on 2026 authorized revenue at current rates. Cal Water also proposes to increase revenue by $74.2 million, or 7.7%, in 2027; and $83.6 million, or 8.1%, in 2028. The company also continues to focus on enhancing efficiency and reducing expenses to help offset the cost of upgrades.