San Jose Water has proposed to increase rates by more than 20 percent through 2027.
Blaming rising inflation and higher operating costs, San Jose Water is seeking to hike rates by more than 20 percent over the next three years, sparking the ire of residents who complain their monthly bill is already too high.
San Jose Water, which is owned by the publicly traded SJW Group, is also asking the state commission if it can add a one-year monthly surcharge of $0.54 in 2015 to help them recoup more than $23 million in an effort to balance their books. The rate hikes are expected to fund $540 million in capital improvement programs, including replacing 24 miles of water mains annually, tackling PFAFs, or “forever chemicals,” in drinking water and expanding a non-potable recycled water system, among other initiatives. San Jose Water purchases its water from the Santa Clara Valley Water District.
Ultimately, Kearns doesn’t expect the CPUC to approve the current proposed plan when commissioners vote on it later this year based on what’s happened in years past. Monte Sereno Councilmember Bryan Mekechuk said he believes that San Jose Water’s rate increases and cost of services are higher than other regulated entities in the Bay Area.
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