Golden State Water and Cal Advocates reach $573 million settlement for rate case

(UI) — American States Water Company's subsidiary, Golden State Water Company (GSWC), has reached a settlement with the Public Advocates Office (Cal Advocates) concerning its water utility rate case.

The settlement, filed on July 12, 2024, addresses most of the issues related to GSWC’s 2025-2027 rate case. If approved by the California Public Utilities Commission (CPUC) by the end of the year, the new rates will take effect on January 1, 2025.

The agreement allows GSWC to invest $573.1 million in infrastructure over three years to maintain reliable water service. This includes $17.7 million for future projects and $58.2 million for ongoing projects. GSWC will also earn interest during construction and recover full rates once the assets are in service.

For 2025, GSWC’s operating revenues are set to rise by about $23 million compared to 2024, with potential increases of $20 million each for 2026 and 2027, contingent on inflation and an earnings test.

Two issues remain unresolved: the sales forecast and supply mix. Additionally, four regulatory mechanisms are still under review, including adjustments for sales, revenue, and PFAS compliance. GSWC and Cal Advocates will submit briefs to the CPUC by the end of July 2024. The final decision will address these issues and the proposed settlement.

Currently, American States Water holds an A Stable rating with Standard & Poor’s, while GSWC maintains an A+ Stable rating from S&P and an A2 Stable rating from Moody’s Investors Service. These ratings were confirmed in 2024.

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