San Jose Water Company General Rate Case (A.24-01-001)
San Jose water rates for 2025 - 2027
BACKGROUND
All investor-owned utilities must obtain approval from the California Public Utilities Commission (CPUC or Commission) of their budgeted expenses and investments before they can include those costs in rates charged to customers. Utilities receive CPUC's approval primarily through a General Rate Case (GRC) application justifying a proposed budget.
On January 1, 2024, San Jose Water Company (San Jose) submitted its GRC application to increase customer rates starting in 2025. The Company is seeking approval to raise its average system rates for water service by approximately 22% over the next three years. After reviewing and analyzing San Jose 's GRC application, workpapers, and data request discovery, the Public Advocates Office provided its report and recommendations on May 15, 2024. The Public Advocates Office recommends the Commission authorize no more than a 6.95% increase over the next three years. Links to the reports are provided below.
PUBLIC ADVOCATES OFFICE’S POSITION
The Public Advocates Office recommends the Commission adopt a total revenue requirement increase of 3.75% for 2025 instead of San Jose's requested increase of 11.11%. Our recommendations provide reasonable ratepayer funding for San Jose to maintain safe and reliable service levels. Additionally, the Public Advocates Office also made the following recommendations to the Commission:
- The ratemaking process should be transparent to decision-makers and ratepayers and encourage utilities to operate efficiently and within a reasonable budget.
- As a substitute for competition, the Commission must ensure that San Jose does not abuse its position as a natural monopoly.
- The Commission should limit alternative ratemaking mechanisms that result in surcharges on customers’ bills.
SAN JOSE REQUEST, PUBLIC ADVOCATES OFFICE RECOMMENDATION, CPUC DECISION COMPARISON
|
|
San Jose's Request |
Public Advocates Office’s Recommendation |
CPUC Decision 24-12-077 |
|||
|
Year |
Increased Revenue |
Percentage Increase |
Revenue Change |
Percentage Change |
Revenue Change |
Percentage Change |
|
2025 |
$55.19 million |
11.11% |
$19.3 million |
3.75% |
$10 million |
1.8% |
|
2026 |
$22.04 million |
3.99% |
$7.7 million |
1.44% |
$15 million |
2.65% |
|
2027 |
$25.8 million |
4.49% |
$9.3 million |
1.72% |
$18.23 million |
3.14% |
Decision adopting San Jose Water Company rates for 2025 GRC
Note: Cal Advocates' recommended increase of 3.75% includes 3.48% of San Jose's under-forecasted budget of approximately $18 million related to purchased water, power, and pump taxes that San Jose tracks in the balancing accounts.
PUBLIC ADVOCATES OFFICE’S REPORTS
A2401001 (PUBLIC) Public Advocates Office Report and Recommendations on Capital Improvement Projects.