Investments in Water Infrastructure

As a state-regulated utility, Golden State Water is required by the state to submit a General Rate Case (GRC) application every three years.

Rates for 2025-27 will provide customers with long-term value through:

• Technology that controls operational costs and improves customer service. 
• Upgrading water treatment facilities essential to providing safe and reliable water service.
• Replacing aging water mains, fire hydrants and other infrastructure essential to conservation, the efficient delivery of water and fire suppression.
• Increasing water supply and storage through groundwater treatment, new wells and the maintenance and construction of new reservoirs.
• Back-up power generation that sustains water treatment and delivery in times of power failure and emergencies.

Frequently Asked Questions

Why were new infrastructure investments and rates adopted? 

• As a state-regulated utility, Golden State Water Company (Golden State Water) must file a General Rate Case (GRC) application with the California Public Utilities Commission (CPUC) every three years. In August of 2023, Golden State Water filed a 2023 General Rate Case (GRC) with the CPUC. The application proposes new water rates and infrastructure investments for 2025, 2026 and 2027.

Why are ongoing investments in water quality and reliability important?​

• To fulfill our commitment to providing high-quality water and reliable service, Golden State Water proactively invests in water treatment, supply, and water distribution systems to create sustainable, long-term value for our customers. Proactive investments avoid the costly and potentially dangerous effects of deferring maintenance or delaying the replacement of aging infrastructure.

What is the rate-making process?   

• The CPUC sets water rates after an extensive review process by the CPUC Public Advocates Office, considering input from Golden State Water customers and evaluating all the elements that make up the proposed rates.  The outcome of this process is the lowest possible customer bills, which will allow Golden State Water to provide safe and reliable water services while complying with regulatory mandates, meeting environmental goals, and replacing aging infrastructure.

How is the cost of water service determined?

• The CPUC requires Golden State Water to ensure reasonable rates that reflect the total cost of providing water service, maintaining the infrastructure, and making needed system improvements. Many factors impact water rates, including rising operation and maintenance costs, regulatory requirements, and capital improvement programs. There are other factors beyond Golden State Water’s control, including, but not limited to, regulatory costs and taxes, rising energy costs, and increasing construction costs to replace aging infrastructure.

Did surcharges increase?

• Beginning this year, the California Public Utilities Commission (CPUC) no longer allows investor-owned water utilities to use water revenue decoupling. This tool ensured that water utilities could not over-collect or under-collect revenue from their customers.  Without a revenue mechanism to ensure a company can cover its operating costs in times of decreased water consumption, the CPUC authorized higher service charges to help recover the cost of treating and delivering water.

Does Golden State Water provide financial assistance? ​

• We recognize that water rate increases are challenging. However, we are trying to keep costs as low as possible while ensuring water quality and quality customer service.  
• Golden State Water offers a monthly credit for qualified low-income customers. Information about Golden State Water’s financial assistance program is posted on our Assistance Programs page.

Now that California’s drought is over, should rates decline? 

• Unlike gas, rates are not determined by supply and demand. The rising operational costs of treating and delivering safe drinking water, energy costs, regulatory requirements, inflation, taxes, and the cost of maintaining, replacing, and building new water infrastructure impact rates.

How were customers notified of the proposed water investments and rates?

• Beginning in August of 2023, Golden State Water notified customers by bill inserts, email, website updates, newspaper advertisements, and public meetings. The CPUC’s rate-making process is structured to be open and transparent, inviting customers to offer public comments. The CPUC’s Public Advocates Office works with the CPUC and customers to ensure the lowest possible rates without compromising public health and safety.

The Ratemaking Process

How Rates Are Determined

Please visit our page, 3 Things to Know About the Rate-Setting Process, to learn more about the ratemaking process and timeline.

California Public Utilities Commission

2023 GRC Application

Notice of Availability

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Bay Point 20-Day Notice

Clearlake 20-Day Notice

Los Osos 20-Day Notice

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Region 2 45-Day Notice

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