Water Customer Rates
DRA represents consumers in scrutinizing the costs of service of California's nine large investor-owned water companies (Class A companies with over 10,000 customers). These companies have 63 geographically separate ratemaking districts, each with their own system costs.
Most of DRA's work in this area concerns applications for rate increases. In General Rate Case (GRC) applications, DRA audits the company's accounts, reviews past and projected expenses, revenue forecasts, cost of capital, plant additions, and rate design.
The Cost of Capital is the overall percentage cost of the funds used to finance a utility’s assets. The CPUC authorizes a rate-of-return to determine the revenues a water utility should earn on its investment.
The CPUC is considering new general guidelines to support the objectives in its Water Action Plan of setting rates that balance investment, conservation, and affordability for multi-district water utilities. Policies being considered include subsidizing high-cost areas via a special fund or through consolidating districts and rates across multi-district water utilities.
California American Water Company (Cal Am)
General Rate Case
San Jose Water Company