Application Reflects Regulated Utility’s True Cost of Service

Cal Water filed an application with the California Public Utilities Commission (CPUC) today that will result in bill decreases for the utility’s Dixon customers. The filing implements various ratemaking mechanisms that ensure customer bills continue to reflect the true cost to provide water service. For the typical residential Dixon customer who uses 7,480 gallons, or 10 Ccf, of water per month, the monthly bill will decrease by $1.86.

Included in the application is a 12-month credit to reflect lower capital financing costs and changes in the federal tax law from Jan. 1-June 30, 2018. In July 2018, Cal Water reduced customer rates going forward due to these changes; the utility also tracked their effect in order to enable customer savings to go back to the first half of 2018.

The filing also includes a 12-month surcharge for expenses incurred in 2016 and 2017 for programs implemented to support customers’ efforts to meet state-mandated water-use reduction requirements. The surcharge is less than the credit, however, resulting in lower water bills.

“At Cal Water, we are committed to providing a reliable supply of safe, high-quality water to the Dixon community,” said Jack Caldwell, Local Manager. “As a regulated utility, our customers’ bills reflect the true cost of providing water service, and we’re pleased to pass along these savings to our valued customers. It’s part of our promise to always provide quality, service, and value.”