American Water: new rates approved for California

The California Public Utilities Commission, or CPUC, approved new rates for California American Water customers on the Monterey Peninsula. Customers will soon receive notifications of how this increase will impact their bills once the final rate design is approved. The new rates continue a modified form of the same successful tiered rate structure that rewards those who save water and discourages water waste. A precise account of how this proposed increase will impact customers' bills will be addressed in a separate filing with the CPUC. In general, the increase will be distributed based on consumption levels, meter size and household allotment, depending on the service area. The new rates will bring in around $7M in additional revenue to fund new infrastructure projects and improvements in the company’s Monterey-area water systems and to offset increases in purchased water, operational and maintenance costs through the end of 2014. This would increase California American Water’s total investment in the Monterey Peninsula to nearly $49M, annually.