Water Rates:
Livermore District

In July 2009, California Water Service Company (Cal Water) was required to file a request with the California Public Utilities Commission (CPUC) for a full review of our rates and costs of service. This filing is called a General Rate Case or GRC. The last GRC for your district was filed in 2007 and became effective in 2008.

Why is Cal Water Filing a GRC in 2009?

Cal Water is required by the CPUC to file a GRC for all of our service areas in 2009. Usually, GRCs are required every three years to ensure that water rates accurately reflect the costs of providing service; however, the CPUC revised its schedule for this year only to get all of Cal Water's districts on the same filing schedule. The 2009 GRC is expected to become effective in January 2011 or later. Future GRCs will be effective every three years, beginning in 2014.

How Much of an Increase is Cal Water Requesting?

The 2009 GRC reflects water system improvements already constructed and in service in your community, as well as preliminary estimates for future water system improvements and expenses.

If approved as filed, in 2011 the company would receive an overall increase of 16.6%. For the typical residential customer using 19 Ccf (14,212 gallons) per month, monthly bills would increase by 16.5%, or $10.20 (34 cents per day). Cal Water is also requesting smaller increases of 2.2% effective in January 2012 and 2.1% in January 2013 to fund continued infrastructure investment and account for inflation. However, the CPUC could approve lesser increases than requested.

What's In It for the Customer?

In our 2009 GRC, Cal Water is proposing the following improvements to your water system:

Other cost increases in the 2009 GRC include higher expenses for government-mandated conservation programs,

purchased water, transportation, additional employees and associated costs, and centralized services, including engineering, billing, water quality, and regulatory compliance.

There are several advantages to getting an essential service such as water from a financially stable utility:

Does This Mean Water Rates Will Change Every Three Years?

Regulated utilities such as Cal Water are required to file GRCs every three years, and the majority of any approved rate increase would occur in the first year following a decision by the CPUC on the GRC filing. In the second and third years after the decision is issued, there are typically “escalation” rate increases, which are usually close to the rate of inflation. Outside of the GRC process, rates can also be adjusted by the CPUC if the utility constructs a large capital project with prior approval, or if certain outside costs increase or decrease, such as those for power, purchased water, and pump taxes.

What is Cal Water Doing to Help Customers?

At Cal Water, we recognize that rate increases are never welcome, and we know that many of our customers have been affected by the economic downturn. Here are some ways we are helping our customers and communities:

The Value of Water

Considering all the ways that water makes our lives better — keeping us alive, clean, and fed — it really is a good value. For a fraction of a penny per gallon, you get a reliable, high-quality water supply delivered right to your tap after we capture it, store it, treat it, and test it. We promise to keep doing our best to provide this essential service as cost-effectively as we possibly can.