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.
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