General Rate Cases

General rate cases are litigated proceedings before the CPUC that establishes San Jose Water Company's base rates for a three-year period. Pursuant to state law, San Jose Water Company is required to file a general rate case filing with the CPUC every three years. In the general rate case process, the CPUC sets rates to cover the costs of providing water service and to allow the company to earn a reasonable return on its investment in water system infrastructure. Major costs to operate a water system include purchased water, groundwater extraction tax, electric power, water treatment costs and labor. The processing of San Jose Water Company's filing generally takes the following 12-month path:

• San Jose Water Company reviews its historical costs, projected costs, and planned water system improvements and prepares a General Rate Case application for consideration by the CPUC.
• The CPUC's Office of Ratepayer Advocates (ORA) audits San Jose Water Company, analyzes its application, and makes a recommendation.
• The CPUC hosts a public hearing to receive input from customers on the application. Customers may also write to the CPUC.
• The CPUC holds a formal hearing, which is much like a court proceeding.
• A CPUC Administrative Law Judge assigned to the application issues a proposed decision.
• The CPUC Commissioners vote on the proposed decision.