California Water Service Group Receives Proposed Decision on 2024 Rate Case

The proposed decision authorizes revenue increases over the next three years.

Mar. 17, 2026 at 11:43pm

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The California Public Utilities Commission issued a proposed decision on the 2024 General Rate Case of California Water Service, the largest subsidiary of California Water Service Group. The decision authorizes additional revenues of $92.3 million in 2026, $50.8 million in 2027, and $52.4 million in 2028, representing rate increases of 11.1%, 5.5%, and 5.4% respectively. The final infrastructure investment budget was not included, but the company expects it will be provided in the final decision.

Why it matters

The proposed rate increases will impact California Water Service Group's 2.1 million customers across California, Hawaii, New Mexico, Washington, and Texas. The decision also establishes new mechanisms to help the company recover fixed costs and adjust sales forecasts annually.

The details

The proposed decision does not authorize the company's request to decouple sales from revenues, but it does reauthorize a Monterey-Style Water Revenue Adjustment Mechanism and water production incremental cost balancing accounts. It also approves a rate design expected to better enable the company to recover fixed costs regardless of water sales.

  • The California Public Utilities Commission is expected to adopt a final decision at its scheduled meeting on April 30, 2026, or shortly thereafter.
  • Written comments from the company are due by April 2, 2026.
  • Oral arguments have yet to be scheduled.

The players

California Water Service Group

The parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, as well as Texas Water Service (TWSC, Inc.). Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.1 million people.

California Public Utilities Commission

The state agency that issued the proposed decision on California Water Service Group's 2024 General Rate Case.

Martin A. Kropelnicki

Chairman and Chief Executive Officer of California Water Service Group.

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What they’re saying

“We appreciate the timely issuance of the PD and look forward to making oral arguments, providing written comments, and having clarifying discussions with the Commission to achieve a closer alignment with what was requested in the application.”

— Martin A. Kropelnicki, Chairman and Chief Executive Officer (Globe Newswire)

What’s next

The California Public Utilities Commission is expected to adopt a final decision at its scheduled meeting on April 30, 2026, or shortly thereafter.

The takeaway

The proposed rate increases from the California Public Utilities Commission will impact California Water Service Group's customers across multiple states, while the new mechanisms aim to help the company better recover fixed costs and adjust sales forecasts annually.