California American Water Files an Application for Rehearing with the CPUC

Rhea-AI Summary

California American Water has filed for a rehearing with the California Public Utilities Commission regarding the Pure Water Monterey Expansion. This application seeks to recover infrastructure costs necessary for water distribution from the project. The company emphasizes the project's importance for the Monterey Peninsula's water supply and urges a swift review of a recent decision that delayed recovery of its investments, causing potential negative impacts on customers and the region.

Other parties may file responses by January 19, 2023.

Positive

• California American Water is committed to supporting the Pure Water Monterey project as a vital part of the region's water supply.
• The approval of the rehearing could facilitate necessary infrastructure investments for the expansion, benefiting the Monterey Peninsula community.

Negative

• The recent decision by the CPUC delayed the recovery of crucial infrastructure investments, impacting the company's financial position and operations.

Speedy Rehearing requested to Pure Water Monterey Expansion

MONTEREY, Calif.--(BUSINESS WIRE)-- On Friday, December 30, California American Water filed with the California Public Utilities Commission (CPUC) its application for rehearing of the recent decision regarding the Pure Water Monterey Expansion agreement. California American Water is requesting recovery of infrastructure costs needed to extract, distribute, and deliver water from the expansion of the Pure Water Monterey project. California American Water supports the project as a critical component of the future water supply portfolio for its Monterey Peninsula customers and urges the CPUC to approve the funds for the infrastructure needed for the project.

“California American Water has built new infrastructure and advanced funding to our partner agency because we support the expansion of the Pure Water Monterey project. This project is needed to reduce pumping from the Carmel River, and this infrastructure is needed for the project,” said Kevin Tilden, president of California American Water. “We encourage the CPUC to grant a rapid rehearing to address the problems and allow us to move forward with the water purchase agreement.”

In its recent decision (D 22-12-001) on the project expansion, the Commission erroneously delayed recovery of infrastructure investments made by the company to support the project expansion, changed capital structures for project development and contradicts CPUC precedent and practice. The decision as written has substantial negative impacts to the company, its customers and the region. California American Water has requested a swift review of the decision to correct the errors and allow the company to move forward with the project agreement.

In November 2021, California American Water, Monterey One Water and the Monterey Peninsula Water Management District all signed a Memorandum of Understanding (MOU) to proceed with a purchase agreement for water provided by Monterey One Water Expansion if the CPUC approved recovery of infrastructure costs advanced by California American Water. The company remains committed to the terms of the MOU.

Other parties to the proceeding may also file with the CPUC applications for rehearing by January 4, 2023, or responses to the rehearing request by January 19, 2023.

Together, the recently approved desalination plant and the Pure Water Monterey Expansion will allow the community to replace water it is currently using from the Carmel River and comply with the direction from the State Water Resources Control Board to do so.

About California American Water:

California American Water, a subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and wastewater services to more than 725,000 people. Information regarding California American Water’s service areas can be found on the company’s website www.californiaamwater.com.

About American Water:

With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 states. American Water provides safe, clean, affordable, and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221231005020/en/

Josh Stratton

Manager, External Affairs

California American Water

831-435-6015

Josh.Stratton@amwater.com

Source: California American Water

FAQ

What is the purpose of California American Water's rehearing request regarding the Pure Water Monterey Expansion?

The rehearing request aims to recover infrastructure costs for the Pure Water Monterey Expansion, which is critical for the water supply in the Monterey Peninsula.

When did California American Water file its rehearing application?

California American Water filed its rehearing application on December 30, 2022.

What potential impacts does the CPUC's recent decision have on California American Water?

The CPUC's recent decision could negatively affect California American Water by delaying the recovery of infrastructure investments, impacting its financial position and operational capabilities.

What is the deadline for other parties to respond to California American Water's rehearing request?

Other parties have until January 19, 2023, to respond to the rehearing request.

How does the Pure Water Monterey Expansion relate to the Carmel River?

The Pure Water Monterey Expansion is intended to reduce reliance on the Carmel River for water supply.