California American Water Finalizes Application for New Revenue to Fund Infrastructure and Service Improvements

SAN DIEGO–(BUSINESS WIRE)–California American Water filed its application to set new rates in each
of its service areas with the California Public Utilities Commission
today. The application will set rates in 2018, 2019 and 2020. The new
rates would go into effect on January 1, 2018.

Approval of this application will allow the company to continue funding
improvements to maintain quality service to its customers and address
the need to replace and upgrade water infrastructure.

“Our updated rates will continue to provide our customers with quality
water through improved water infrastructure,” said California American
Water President Rob MacLean. “With most of our customers paying about a
penny a gallon, more than $129 million in new capital investments in
2018 and 2019, such as improved water mains, pumps and tanks, will help
increase water quality for residential use and for fire protection.
These updates will also encourage conservation while keeping the cost of
water relatively low.”

The application seeks a revenue increase statewide of $51 million over
the three-year period. The increase in the first year (effective January
1, 2018) would be $35 million over 2016 revenues at current authorized
rates. While this proposal will affect customers differently based on
where they live and how much water they use, for most customers the
increase will be pennies per day.

The rate increase will vary by operating district, and customers will be
notified about the proposed change.

The company will continue a commitment to conservation or tiered rates,
which will reward customers who conserve water with lower rates and will
continue to offer a comprehensive conservation program and low income
assistance program.

“Our customers around the state have done a tremendous job saving water
during the drought,” MacLean said. “Our program offers rebates on water
saving appliances and free water saving devices. We offer our customers
free water wise surveys where our conservation representatives will help
them find ways to save water in their homes. We also provide payment
assistance for qualifying customers who need assistance with their bill.”

California American Water, a subsidiary of American Water (NYSE: AWK),
provides high-quality and reliable water and/or wastewater services to
more than 615,000 people.

Founded in 1886, American Water is the largest publicly traded U.S.
water and wastewater utility company. Marking its 130th anniversary this
year, the company employs more than 6,700 dedicated professionals who
provide regulated and market-based drinking water, wastewater and other
related services to an estimated 15 million people in 47 states and
Ontario, Canada. More information can be found at www.amwater.com.

Contacts

California American Water
Evan Jacobs
Office: 916-568-4252
Mobile:
707-495-6135
evan.jacobs@amwater.com