On May 30, 2019, the State of California approved Golden State Water’s General Rate Case (GRC) to determine water rates and infrastructure investments for 2019, 2020 and 2021. Golden State Water has filed Advice Letters with the California Public Utilities Commission (CPUC) to implement the approved rates, effective June 8, 2019.
Golden State Water’s GRC was originally filed on July 19, 2017, and the new rates include savings from the lower federal income tax requirement passed through to customers in July 2018 (Tax Cuts and Jobs Act of 2017).
The GRC decision was expected prior to Jan. 1, 2019. Because the GRC decision was delayed approximately five months by factors outside of Golden State Water’s control, 2018 rates remained in effect into 2019 and will remain until the new approved rates are implemented on June 8, 2019. Golden State Water will utilize a memorandum account to settle the difference between actual rates collected during the period from Jan. 1, 2019 and June 7, 2019 and the rates that were approved for 2019. Any over-collected revenue will be refunded to customers, and any under-collected revenue will be recovered via a surcharge.
Rates are primarily driven by how much we invest to protect the safety and reliability of the local water system. Golden State Water proactively updates our aging water pipes on a replacement schedule of approximately 100 years. For comparison, the American Society of Civil Engineers recently published a noting a national average replacement schedule of 200 years on water pipes that are designed to last 75-100 years.
Our commitment to the local water infrastructure ensures we can continue providing our customers with premium water service, so they never have to worry about water.
The CPUC ratemaking process establishes a high standard of accountability and transparency for all regulated utilities in California.
To learn more about the GRC and the proposed water rates for your area, please select your community (data for the approved GRC will be updated in the coming days).