California American Water has reached a partial settlement agreement with the California Public Utilities Commission's (CPUC) Public Advocates Office to set revenue for 2027 to 2029. The filing, submitted yesterday, permits the utility to recover additional annualized water and wastewater revenues of $24 million in test year 2027, $21 million estimated for escalation year 2028, and $22 million estimated for attrition year 2029 if Construction Work in Progress (CWIP) remains in rate base. The 2027 increase represents a reduction compared to the company's revised proposed increase of $43 million above 2026 expected revenues. The remaining issue regarding the treatment of CWIP is pending.

The settlement agreement strengthens California American Water's Customer Assistance Program, increasing discounts from 35 percent to 50 percent off the typical bill for qualified residential customers in Central California. It continues discounts of 25 percent for qualified customers in Northern and Southern California. Additionally, the settlement authorizes the expansion of the Multi-family Assistance Payment Program pilot to qualified residents of multi-family housing in Monterey County.

California American Water will implement the new rates effective January 1, 2027, pending the CPUC's decision on the settlement agreement and the outstanding issue of CWIP treatment. While other parties are involved in this General Rate Case, the settlement announced today is specifically with the CPUC's Public Advocates Office. Customers in each of California American Water's service areas will receive information regarding the new rates, customer assistance, and conservation programs ahead of implementation.

Regulated water utilities like California American Water are required by law to file a General Rate Case every three years with the CPUC to set revenues and rates. The current General Rate Case was filed on July 1, 2025, reflecting approximately $750 million of ongoing water and wastewater system investments completed and planned from 2025 through 2028. The request supports the company's commitment to implementing critical system upgrades and improving water quality and reliability for its approximately 720,000 people served.

Revenue Recovery Details

American Water, the largest regulated water and wastewater utility company in the U.S., contributed expertise to key discussions at the Mid-America Regulatory Conference (MARC) 2026 held June 7-10, 2026 in Madison, Wis. Company leaders joined regulators, utility executives and industry experts to explore pressing issues facing the water and wastewater sector, including balancing reliability, affordability and environmental responsibility. The conference also focused on strengthening collaboration across critical infrastructure sectors to support growing communities.

"Water utilities today are balancing a growing number of challenges, from infrastructure investment and affordability to resilience and regulatory compliance," said Cheryl Norton, EVP and Chief Operating Officer of American Water. "These conversations are critical to helping utilities, regulators and other stakeholders identify practical solutions that strengthen water and wastewater systems to help ensure customers continue to receive safe, clean, reliable and affordable service."

Rebecca Losli, President of Illinois American Water, participated in the panel discussion "Every Drop Counts: Balancing Water Reliability, Affordability, Safety and Environmental Responsibility." This session explored the complex challenges utilities and regulators face in maintaining safe, reliable and affordable water and wastewater service while addressing aging infrastructure, evolving environmental regulators, cybersecurity threats and other emerging risks. Losli and the other panelists discussed practical strategies for helping to ensure water and wastewater systems remain resilient while continuing to meet rigorous quality standards and customer expectations.

Brad Nielsen, President of Iowa American Water, participated in the "Midwestern Nice: Air, Water and Energy Collaboration on Large Load Impacts" panel. The discussion focused on the growing need for coordination among the water, energy and environmental sector as communities experience increased demand from large-scale economic development and industrial projects. Panelists examined approaches for evaluating infrastructure impacts, sharing data and supporting sustainable growth while maintaining reliable service.

Key Conference Discussions

American Water continues to help communities prepare for the future by investing in resilient infrastructure and advancing solutions that protect public health and safety. Through its involvement in MARC, the company continues to collaborate with regulators and key stakeholders to address today's challenges and build stronger systems for tomorrow.