Union Pacific Railroad Co GRC A2503016

BACKGROUND

All investor-owned utilities must obtain approval from the California Public Utilities Commission (CPUC) of their budgeted expenses and investments before utilities are able to include those costs in rates charged to customers.  This is done primarily through a General Rate Case (GRC) application to the CPUC to justify a proposed budget.

On March 28, 2025, Union Pacific Railroad Company (UPRR) filed an application (A.25-03-016) to increase water rates in Keene, California. On April 2, 2025, UPRR also filed an application (A.25-03-017) to abandon water service and be relieved of its public utility obligations if the CPUC does not authorize UPRR’s rate increases.

PUBLIC ADVOCATES OFFICE’S POSITION

UPRR itself acknowledged that its request to increase water rates in Keene are "not affordable". If the CPUC approves UPRR’s request, Keene residents’ average monthly bills will soar 4 to 7 times higher, reaching on average $1,500 a month for a household. In addition, UPRR's request to abandon water service if CPUC does not authorize UPRR's rate increases puts Keene families at risk and in jeopardy of losing access to drinking water.

The Public Advocates Office protested UPRR’s applications on May 1, 2025, and provided its report and recommendations on July 23, 2026.

The Public Advocates Office urges the CPUC to deny UPRR’s rate increase. Keene families need a water provider who delivers safe, reliable, and affordable service. The Public Advocates Office recommends transferring all water system assets and water rights to a qualified provider who will protect customers from soaring bills.

Downloads:

• A2503016 Public Advocates Office Protest
• A2503016 Public Advocates Office Testimony