San Jose Water (SJW), a wholly-owned subsidiary of SJW Group (NYSE: SJW), announced the filing of its 2024 General Rate Case (GRC) application with the California Public Utilities Commission (CPUC) for new rates in 2025, 2026 and 2027.
The application proposes a 3-year $540 million capital investment program to ensure a resilient water system for SJW customers and its local communities. SJW provides water service to approximately one million people in the greater San Jose metropolitan area. The company has served customers since 1866, and its infrastructure requires continuous replacement before it reaches the end of its service life. Since 2005, San Jose Water has invested more than $1.6 billion to upgrade water infrastructure — ensuring the continued delivery of high-quality and reliable water service.
“Water remains one of the most critical resources that we rely on in our daily lives,” said John Tang, Vice President of Regulatory Affairs at SJW. “Reliable water service is not only essential for day-to-day function, but also supports fire protection, economic vibrancy, and environmental conservation efforts. Thoughtful and consistent capital expenditures are necessary to ensure clean drinking water and a healthy, natural environment.”
Every three years, water utilities regulated by the CPUC are required to submit a filing detailing proposed rate adjustments and the reasons for these rate adjustments. The CPUC and Public Advocates Office analyze each aspect of the rate application as part of a transparent public process to ensure customers pay reasonable rates. Importantly, customers are given an opportunity to participate and share feedback during the rate setting process.
This filing initiates an anticipated 12-month review process by the CPUC. Water rates proposed in this application are preliminary. The CPUC will determine final rates following a comprehensive review process.
Some of the projects proposed for completion during the period covered by the GRC include:
- Replacing about 24 miles of water mains annually;
- Addressing PFAS-impacted groundwater wells to protect public health;
- Expanding the non-potable recycled water system to improve water supply reliability;
- Strengthening the physical security of our water system and enhancing our readiness to deliver safe and reliable water service during power interruptions, earthquakes and wildfires;
- Deploying information technology to deliver an improved customer experience and exceptional customer service;
- Reducing our carbon footprint through the deployment of solar energy, replacement of diesel generators with backup energy storage systems, electrification of our fleet, and installation of acoustic sensors to reduce water loss; and,
- Advancing the CPUC’s Environmental and Social Justice Action Plan by improving access to high-quality water service, increasing climate resiliency, and promoting economic and workforce development opportunities.
