California American Water Proposed Rate Increase

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Recently, Cal Am customers received a letter notifying them of an upcoming CPUC Public Hearing taking place on October 30. The City would like to clarify that this hearing is concerning a different rate case than the one that is noted on this web page and that the City of Thousand Oaks has been fighting. This case is about the profit margin Cal Am (and all other large private water companies in California) are able to include in rates.  Their proposal under this “Cost of Capital” rate case would result in an increase of 1.33% for the average residential water customer (using 18 hcf/month).  This type of rate case happens every 4 to 5 years.  The public hearing was set by the CPUC in Los Angeles since it is a state-wide case. If you have questions or concerns regarding the details of the case noted in the letter, please contact Jay Spurgin, Public Works Director.


California American Water is proposing rate hikes varying from 5% to 25% (depending on how much water is used) next year to cover increasing operating, maintenance, and capital costs, including costs in other water systems throughout Southern California. To see how rates differ in the proposed consolidated areas see here. The rate increases will affect 47% of the City's residents. To find out if you are affected by the proposed rates increases view the service area map.

The City feels the residents are being unfairly burdened by these higher rate increases and therefore, have been involved in opposing the rate hikes over the past year. The California Public Utilities Commission (CPUC) is the public entity who oversees the process of rate increases.  You may view the testimony provided by the City to the CPUC.

To voice your opinion on this issue, please contact the CPUC. All comments should reference general rate case A.16-07-002.  For information and ideas of what to include in your comments, visit our voice your opinion page.