SJW Group Announces CPUC Decision Approving San Jose Water’s General Rate Case
SJW Group announced CPUC's approval of San Jose Water's General Rate Case, authorizing $450 million in water infrastructure investments over 2025-2027. The decision approves a settlement agreement between the Company and Public Advocates Office from August 19, 2024. The plan includes a 4% rate increase effective January 1, 2025, with subsequent years' rates based on authorized plant investments and CPI changes. The investment aims to enhance drinking water infrastructure, fire protection, and environmental conservation efforts. The CPUC denied two items outside the settlement regarding service charge calculation and full cost balancing account enhancement.
Il gruppo SJW ha annunciato l'approvazione da parte della CPUC del caso tariffario generale della San Jose Water, autorizzando 450 milioni di dollari in investimenti per le infrastrutture idriche nel periodo 2025-2027. La decisione approva un accordo di transazione tra la Società e l'Ufficio dei Difensori Pubblici datato 19 agosto 2024. Il piano prevede un incremento delle tariffe del 4% a partire dal 1 gennaio 2025, con le tariffe degli anni successivi basate sugli investimenti autorizzati nelle infrastrutture e sulle variazioni dell'IPC. L'investimento mira a migliorare le infrastrutture per l'acqua potabile, la protezione antincendio e gli sforzi di conservazione ambientale. La CPUC ha negato due richieste al di fuori della transazione riguardanti il calcolo delle spese di servizio e il miglioramento del bilancio dei costi totali.
El grupo SJW anunció la aprobación por parte de la CPUC del caso tarifario general de San Jose Water, autorizando $450 millones en inversiones en infraestructura hídrica para el período 2025-2027. La decisión aprueba un acuerdo de conciliación entre la compañía y la Oficina de Defensores Públicos del 19 de agosto de 2024. El plan incluye un incremento de tarifas del 4% con efecto a partir del 1 de enero de 2025, y las tarifas de los años posteriores se basarán en las inversiones de planta autorizadas y en los cambios del IPC. La inversión tiene como objetivo mejorar la infraestructura de agua potable, la protección contra incendios y los esfuerzos de conservación del medio ambiente. La CPUC denegó dos aspectos fuera del acuerdo relacionados con el cálculo de cargos por servicio y la mejora de la cuenta de balance de costos total.
SJW 그룹은 CPUC가 산호세 물 공급의 일반 요금 사례를 승인하고 2025-2027년 동안 4억 5천만 달러의 수도 인프라 투자를 승인했다고 발표했습니다. 이 결정은 2024년 8월 19일 회사와 공공 변호사 사무소 간의 합의서를 승인합니다. 계획에는 2025년 1월 1일부터 시행되는 4%의 요금 인상이 포함되어 있으며, 이후 몇 년의 요금은 승인된 시설 투자와 CPI 변동을 기반으로 합니다. 이 투자는 음용수 인프라, 화재 보호 및 환경 보호 노력을 강화하는 것을 목표로 합니다. CPUC는 서비스 요금 계산 및 전체 비용 균형 계정 개선과 관련된 정착 외의 두 가지 항목을 거부했습니다.
Le groupe SJW a annoncé l'approbation par la CPUC du cas tarifaire général de San Jose Water, autorisant 450 millions de dollars d'investissements dans l'infrastructure de l'eau pour la période 2025-2027. La décision approuve un accord de règlement entre la société et le Bureau des avocats publics du 19 août 2024. Le plan comprend une augmentation des tarifs de 4% à compter du 1er janvier 2025, les tarifs des années suivantes étant basés sur les investissements autorisés dans les installations et les variations de l'IPC. Cet investissement vise à améliorer l'infrastructure de l'eau potable, la protection contre les incendies et les efforts de conservation de l'environnement. La CPUC a rejeté deux éléments en dehors du règlement concernant le calcul des frais de service et l'amélioration du compte d'équilibre des coûts total.
Die SJW-Gruppe gab die Genehmigung der CPUC für den allgemeinen Tarifsachverhalt von San Jose Water bekannt, die 450 Millionen Dollar in Wasserinfrastrukturinvestitionen für den Zeitraum 2025-2027 autorisiert. Die Entscheidung genehmigt eine Vergleichsvereinbarung zwischen dem Unternehmen und dem Büro der öffentlichen Anwälte vom 19. August 2024. Der Plan beinhaltet eine Tarifsteigerung von 4%, die ab dem 1. Januar 2025 wirksam ist, wobei die Tarife der folgenden Jahre auf den genehmigten Investitionen in die Anlagen und den Änderungen des Verbraucherpreisindex (VPI) basieren. Die Investition zielt darauf ab, die Infrastruktur für Trinkwasser, den Brandschutz und Umweltschutzbemühungen zu verbessern. Die CPUC wies zwei Punkte außerhalb des Vergleichs bezüglich der Berechnung von Servicegebühren und der Verbesserung des ausgleichenden Kostenkontos zurück.
- Secured approval for $450 million infrastructure investment over 3 years
- Settlement agreement with Public Advocates Office approved in entirety
- Better alignment of actual and authorized water usage improving cost recovery
- 4% rate increase approved for 2025
- CPUC rejected service charge calculation proposal
- Full cost balancing account enhancement request denied
Insights
The CPUC's approval of San Jose Water's GRC represents a substantial regulatory win with the authorization of
The settlement agreement's approval demonstrates strong regulatory relationships, though the rejection of the service charge calculation and full cost balancing account modifications slightly dampens the overall outcome. The infrastructure investment authorization supports both system reliability and potential earnings growth through rate base expansion. This regulatory framework provides a clear path for capital deployment and recovery, essential for utility valuations.
The
The approved framework balances utility operational needs with customer affordability through gradual rate adjustments. The CPI-linked rate mechanism for 2026-2027 provides built-in inflation protection while maintaining regulatory efficiency. Despite the denial of enhanced cost balancing mechanisms, the core investment program remains intact, supporting long-term asset reliability and service quality improvements.
Provides for
Recognizes San Jose Water’s commitment to be a force for good in the communities it serves.
SAN JOSE, Calif., Dec. 23, 2024 (GLOBE NEWSWIRE) -- SJW Group (NASDAQ: SJW), a leading investor-owned pure-play water and wastewater utility, announced today that the California Public Utilities Commission (“CPUC”) approved the General Rate Case (“GRC”) for its wholly-owned subsidiary, San Jose Water Company (“SJW” or “the Company”). SJW originally filed its GRC with the CPUC on January 2, 2024, to determine new rates for the years 2025 through 2027, among other things.
The CPUC’s final decision approves a settlement agreement in its entirety that the Company and the Public Advocates Office (PAO) entered into on August 19, 2024. As a result, the decision authorizes the Company to invest
Additionally, the final decision provides for a rate increase of approximately
“We appreciate the commitment and dedication of the CPUC’s staff and commissioners along with the PAO to this comprehensive yearlong General Rate Case process,” said Tanya Moniz-Witten, President of San Jose Water. “We take the responsibility of delivering high quality water through clean pipes at affordable rates to the communities where we live, work and serve very seriously. We work diligently to make prudent investments which give our customers the most value for their dollar. The approval of our GRC recognizes the need to continually invest in our water system to ensure ongoing reliable water service and public health protection for the one million residents in the greater San Jose metropolitan area.”
Two litigated items outside of the settlement agreement related to the service charge calculation and enhancement of the full cost balancing account were also addressed. The CPUC disallowed these items in the final decision.
To learn more about the General Rate Case head to: sjwater.com/2025Rates
About SJW Group
SJW Group is among the largest investor-owned pure-play water and wastewater utilities in the United States, providing life-sustaining and high-quality water service to nearly 1.6 million people. SJW Group’s locally led and operated water utilities - San Jose Water Company in California, The Connecticut Water Company in Connecticut, The Maine Water Company in Maine, and SJWTX, Inc. (dba The Texas Water Company) in Texas - possess the financial strength, operational expertise, and technological innovation to safeguard the environment, deliver outstanding service to customers, and provide opportunities to employees. SJW Group remains focused on investing in its operations, remaining actively engaged in its local communities, and delivering continued sustainable value to its stockholders. For more information about SJW Group, please visit www.sjwgroup.com.
About San Jose Water
Founded in 1866, San Jose Water is a regulated private utility, and one of the largest and most technically sophisticated urban water systems in the United States. The company serves over one million people in the greater San Jose metropolitan area. San Jose Water is owned by SJW Group, a publicly traded company listed on the NASDAQ Stock Market under the symbol SJW. SJW Group also owns: Connecticut Water Company in Connecticut; Maine Water Company in Maine; and Texas Water Company in Texas. To learn more about San Jose Water, visit: sjwater.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “estimates,” “anticipates,” “intends,” “seeks,” “plans,” “projects,” “may,” “should,” “will,” or the negative of those words or other comparable terminology. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict.
These forward-looking statements involve a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the effect of water, utility, environmental and other governmental policies and regulations, including regulatory actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures, PFAS and other decisions; (2) changes in demand for water and other services; (3) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (4) the effect of the impact of climate change; (5) unexpected costs, charges or expenses; (6) our ability to successfully evaluate investments in new business and growth initiatives; (7) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (8) the risk of work stoppages, strikes and other labor-related actions; (9) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (10) changes in general economic, political, business and financial market conditions; (11) the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness, and general market and economic conditions; and (12) legislative, and general market and economic developments. The risks, uncertainties and other factors may cause the actual results, performance or achievements of SJW Group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Results for a quarter are not indicative of results for a full year due to seasonality and other factors. Other factors that may cause actual results, performance or achievements to materially differ are described in SJW Group’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC. Forward-looking statements are not guarantees of performance and speak only as of the date made. SJW Group undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Media Contact:
John Tang
Vice President, Regulatory Affairs and Customer Service
(408) 279-7933
john.tang@sjwater.com
FAQ
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