Dear Palm Mutual Water Company Customer:
In May 2025, Cal Water entered into an agreement with Palm Mutual Water Company (Palm Mutual) to acquire Palm Mutual’s water utility assets and serve its customers. When completed, the Palm Mutual system will become part of our Bakersfield District.
In Bakersfield, we currently provide water utility service to about 445,600 people through 120,000 customer connections in both our regulated water system and the City of Bakersfield’s system, which we operate. We are committed to providing safe, clean, reliable water and excellent service to each customer, every day. We invest in the water system infrastructure to keep it reliable for customers’ and firefighters’ everyday and emergency needs, and our quality assurance programs confirm the water we provide meets all water quality and environmental standards. As your water provider, we will do the same for your system.
To complete this acquisition, Cal Water needs approval from the California Public Utilities Commission (CPUC), the state agency that regulates our operations. We are requesting that approval by filing what’s referred to as “advice letter” 2567 (AL 2567) on October 27, 2025. A copy of that request can be read online.
Because Palm Mutual customers currently receive water measured through a meter, we propose in AL 2567 to apply the existing metered tariff in our Bakersfield District to Palm Mutual customers. The table below shows the anticipated bill impact to Palm Mutual customers of moving to Cal Water’s current metered tariff.
| Single-Family Residential | Palm Mutual | Cal Water | $ Increase | % Increase |
|---|---|---|---|---|
| Service charge 1″ Meter | $65.00 | $69.78 | $4.78 | 7% |
| Usage (CCF) | ||||
| 10 | $31.98 | $16.64 | $(15.35) | -48% |
| 20 | $63.96 | $51.36 | $(12.61) | -20% |
| 30 | $95.95 | $96.63 | $0.68 | 1% |
| 40 | $127.93 | $153.20 | $25.27 | 20% |
| 50 | $159.91 | $209.78 | $49.87 | 31% |
| 75 | $239.86 | $351.21 | $111.35 | 46% |
| 100 | $319.82 | $492.65 | $172.83 | 54% |
| 125 | $399.77 | $634.08 | $234.31 | 59% |
| 150 | $479.73 | $775.52 | $295.79 | 62% |
| 175 | $559.68 | $916.95 | $357.27 | 64% |
| 200 | $639.64 | $1,058.39 | $418.75 | 65% |
Metered residential customers in our Bakersfield District typically average about 8,977 gallons (12 CCF) of water use each month. At that level, with a 1-inch meter, your monthly bill would be about $92.46, based on current residential metered rates (without surcharges, fees, or local taxes).
To provide input to the CPUC regarding this proposed acquisition, please see the instructions in AL 2567 at the above link. Comments on AL 2567 must be submitted by November 24, 2025. If AL 2567 is approved, note that future rate changes would occur using the CPUC’s usual processes.
If you have any questions at this time, we recommend that you contact Palm Mutual at [email protected]. Thank you for your cooperation, and we look forward to serving you.
