Cal Water Receives Approval for Interim Rate Adjustments Amid Ongoing Review
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California Water Service (Cal Water) customers will see a temporary 3% rate increase beginning January 1, 2026, as the California Public Utilities Commission (CPUC) continues its evaluation of the utility’s 2024 General Rate Case (GRC) and Infrastructure Improvement Plan. The approval, announced December 29, 2025, allows Cal Water to continue vital infrastructure investments aimed at ensuring safe, clean, and reliable water service.
Addressing Infrastructure Needs and Rate Case Delays
Cal Water, the largest subsidiary of California Water Service Group (NYSE: CWT), initially filed its triennial GRC and Infrastructure Improvement Plan in July 2024. The CPUC’s standard 18-month review cycle stipulated that any rate changes resulting from the case would take effect on January 1, 2026, covering the period from 2026 through 2028. However, delays in the proceedings prompted the CPUC to authorize the interim rate adjustments.
According to a company release, the CPUC’s action is intended to mitigate the potential for larger retroactive recovery surcharges that could arise if the final rate decision is further delayed. The interim rates are subject to potential refund or adjustment once the CPUC issues its final decision.
Balancing Affordability and Investment
“As we keep affordability for our customers top of mind, we appreciate the CPUC for approving interim rate adjustments while it continues to review our Infrastructure Improvement Plan,” stated Martin A. Kropelnicki, California Water Service Group Chairman and CEO. He further emphasized that delaying rate case decisions can negatively impact customers through increased retroactive charges, and that these interim rates will help avoid that outcome while enabling continued infrastructure improvements.
Serving Millions Across the Western US
California Water Service Group provides regulated and non-regulated water and wastewater services to over 2.1 million people across California, Hawaii, New Mexico, Washington, and Texas. The company’s utilities include California Water Service, Hawaii Water Service, New Mexico Water Service, Washington Water Service, and Texas Water Service. Shares of California Water Service Group trade on the New York Stock Exchange under the ticker symbol “CWT.”
Forward-Looking Statements and Investor Caution
The company’s announcement includes forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, assumptions, and projections, and are subject to inherent risks and uncertainties. Investors are cautioned not to place undue reliance on these statements, as actual results may differ materially. Further details regarding these risks can be found in the company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
Media Contact:
Yvonne Kingman
[email protected]
310-257-1434
Source: California Water Service Group
