So how do the water rates get set?

So how do water rates get set anyway?

Oooh, oooh, I know this one.

Cal-Am files a rate schedule with the California Public Utilities Commission (CPUC) every three years. The filing includes all districts served by Cal-Am in California. CPUC holds hearings, solicits public comments, etc. It can take several years to work through the process.

If the current rate schedule expires before the new one is approved, Cal-Am applies to continue charging the existing rates (which were approved three years ago). When the new (presumably higher) rates are finally approved, Cal-Am is then allowed to apply a surcharge to make up the difference.