TFTT Report

The latest Truth from the Tap infographic, included in the newly launched California microsite, illustrates how water rates are set for California’s largest regulated water utilities. Rates are set by an independent agency – the California Public Utilities Commission (CPUC) – after a comprehensive, transparent process that protects communities by ensuring adequate investment in safe, reliable water systems.

In setting rates every three years through the general rate case process, as mandated by California state law, the CPUC thoroughly reviews a water company’s costs, audits system needs, conducts public hearings for customers, holds formal evidentiary hearings adjudicated by administrative law judges, and issues a final decision authorizing an approved rate structure and terms of service for the utility. The public has many opportunities to be involved and to provide input throughout the general rate case process, which at times can take almost two years.