San Jose Water Company
2016 General Rate Case (GRC)



San Jose Water Company serves over 1 million people and is responsible for the supply and distribution of water for domestic and industrial purposes for portions of the Cities of San Jose and Cupertino, as well as the cities of Campbell, Los Gatos, Monte Sereno, Saratoga, and unincorporated Santa Clara County. 

On January 5, 2015, the San Jose Water Company filed an Application requesting CPUC approval to increase rates for water service over present levels:

  • 2016: $ 34,031,000 (11.88%) 
  • 2017: $ 10,111,000 (3.06%)  
  • 2018: $ 16,590,000 (4.78%)
  • 3-Year Cumulative Total = $60.7 million (20.7% increase)

Specifically, the proposed rate increase is driven by these key areas:

  • $94 million in Capital Budgets  
  • $  7.6 million in Conservation Expenses
  • $  7.3 million in Taxes
  • $  7.1 million in Capital Investment Recovery
  • $  4.8 million in Purchased Services
  • $  4.4 million in Staffing, including 33 new positions

ORA Policy Position

ORA performed an in-depth review of San Jose Water's Application and makes the following recommendations for revenue increases:

  • 2016:  $23,468,000 or 8.54% 
  • 2017:  $13,803,000 or 4.42%
  • 2018:  $16,261,000 or 4.95%
  • 3-Year Cumulative Total = $53.5 million 

ORA's analysis shows that San Jose Water has over-estimated its revenue needs in the areas of Capital Improvement Projects, Cost of Labor, and Conservation. More than one-quarter of ORA’s calculated increase recommendation in 2016 rates is the direct result of the lower consumption forecasts developed in response to recent state mandates for increased conservation. 

See ORA's April 24, 2015 Testimony in response to San Jose Water's GRC Application.

See ORA’s February 2, 2014 Protest to San Jose Water’s GRC Application.

ORA is in the process of reviewing San Jose’s 2016 GRC Application in-depth and expects to file its findings and Testimony in mid-April 2015.


Proceeding Status 

See the CPUC Proceeding docket. 


Other Resources


2013 San Jose Water Company GRC