Constructive agreement provides for $450
million in drinking water infrastructure investment over
three-years.
San Jose Water (SJW), a wholly-owned subsidiary of SJW Group
(NYSE: SJW), today announced that, together with the Public
Advocates Office (PAO), it has reached a constructive settlement
agreement in its 2025 to 2027 General Rate Case (GRC) that was
filed with the California Public Utilities Commission (CPUC) on
January 2, 2024. The settlement agreement, filed on August 19, 2024
with the CPUC for its approval, excludes two policy issues which
will be litigated via briefs filed on August 1, 2024.
“I am grateful to the PAO for diligently working with us to
achieve this constructive agreement that reflects our shared goal
of ensuring that customers have high-quality drinking water and
reliable service at fair rates,” stated Tanya Moniz-Witten, SJW’s
President. “This agreement enables SJW to invest $450 million over
three years in drinking water infrastructure in our local service
area to support day-to-day water system functions, in addition to
supporting fire protection, economic vibrancy, and environmental
conservation efforts. We are committed to our daily mission of
serving our customers, communities, and the environment at
best-in-class levels. The settlement agreement positions us to
deliver on this promise more effectively.”
In addition to the $450 million three-year capital budget, the
settlement agreement:
- Further aligns actual compared to authorized usage through a
lower sales forecast;
- Provides for greater revenue recovery through the service
charge; and,
- Approves the recovery of $15.8 million from balancing and
memorandum accounts.
The two litigated items relate to including chemical and waste
disposal costs in the company’s full cost balancing account, and to
adjusting its service charge calculation.
Water Rate Advocates for Transparency, Equity, and
Sustainability (WRATES) had originally agreed to the settlement
agreement in principle on June 14, 2024. WRATES has since decided
to not sign on to the settlement agreement.
Every three years, water utilities regulated by the CPUC are
required to submit a filing detailing proposed rate adjustments and
the reasons for these adjustments. The CPUC and PAO analyze each
aspect of the rate application as part of a transparent public
process, which includes public hearings and opportunities to share
feedback — all to ensure just and reasonable rates, and safe and
reliable infrastructure.
The CPUC is expected to render a decision on the settlement
agreement in the fourth quarter of 2024 with new rates effective on
January 1, 2025.
About San Jose Water
Founded in 1866, San Jose Water is an investor-owned public
utility, and is one of the largest and most technically
sophisticated urban water systems in the United States. Serving
over one million people in the greater San Jose metropolitan area,
San Jose Water also provides services to other utilities including
operations and maintenance, billing, and backflow testing. San Jose
Water is owned by SJW Group, a publicly traded company listed on
the New York Stock Exchange under the symbol SJW. SJW Group also
owns: Connecticut Water Company in Connecticut; Maine Water Company
in Maine; and SJWTX, Inc. (dba Texas Water Company) in Texas. To
learn more about San Jose Water, visit www.sjwater.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended. Some of these forward-looking statements can be identified
by the use of forward-looking words such as “believes,” “expects,”
“estimates,” “anticipates,” “intends,” “seeks,” “plans,”
“projects,” “may,” “should,” “will,” or the negative of those words
or other comparable terminology. These forward-looking statements
are only predictions and are subject to risks, uncertainties, and
assumptions that are difficult to predict.
These forward-looking statements involve a number of risks,
uncertainties and assumptions including, but not limited to, the
following factors: (1) the effect of water, utility, environmental
and other governmental policies and regulations, including
regulatory actions concerning rates, authorized return on equity,
authorized capital structures, capital expenditures, PFAS and other
decisions; (2) changes in demand for water and other services; (3)
unanticipated weather conditions and changes in seasonality
including those affecting water supply and customer usage; (4) the
effect of the impact of climate change; (5) unexpected costs,
charges or expenses; (6) our ability to successfully evaluate
investments in new business and growth initiatives; (7)
contamination of our water supplies and damage or failure of our
water equipment and infrastructure; (8) the risk of work stoppages,
strikes and other labor-related actions; (9) catastrophic events
such as fires, earthquakes, explosions, floods, ice storms,
tornadoes, hurricanes, terrorist acts, physical attacks,
cyber-attacks, epidemic, or similar occurrences; (10) changes in
general economic, political, business and financial market
conditions; (11) the ability to obtain financing on favorable
terms, which can be affected by various factors, including credit
ratings, changes in interest rates, compliance with regulatory
requirements, compliance with the terms and conditions of our
outstanding indebtedness, and general market and economic
conditions; and (12) legislative, and general market and economic
developments. The risks, uncertainties and other factors may cause
the actual results, performance or achievements of SJW Group to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements.
Results for a quarter are not indicative of results for a full
year due to seasonality and other factors. Other factors that may
cause actual results, performance or achievements to materially
differ are described in SJW Group’s most recent Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on
Form 8-K filed with the SEC. Forward-looking statements are not
guarantees of performance, and speak only as of the date made. SJW
Group undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240820619971/en/
Liann Walborsky Director of Corporate Communications 408
918-7247
SJW (NYSE:SJW)
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