Speedy Rehearing requested to Pure Water Monterey Expansion

On Friday, December 30, California American Water filed with the California Public Utilities Commission (CPUC) its application for rehearing of the recent decision regarding the Pure Water Monterey Expansion agreement. California American Water is requesting recovery of infrastructure costs needed to extract, distribute, and deliver water from the expansion of the Pure Water Monterey project. California American Water supports the project as a critical component of the future water supply portfolio for its Monterey Peninsula customers and urges the CPUC to approve the funds for the infrastructure needed for the project.

“California American Water has built new infrastructure and advanced funding to our partner agency because we support the expansion of the Pure Water Monterey project. This project is needed to reduce pumping from the Carmel River, and this infrastructure is needed for the project,” said Kevin Tilden, president of California American Water. “We encourage the CPUC to grant a rapid rehearing to address the problems and allow us to move forward with the water purchase agreement.”

In its recent decision (D 22-12-001) on the project expansion, the Commission erroneously delayed recovery of infrastructure investments made by the company to support the project expansion, changed capital structures for project development and contradicts CPUC precedent and practice. The decision as written has substantial negative impacts to the company, its customers and the region. California American Water has requested a swift review of the decision to correct the errors and allow the company to move forward with the project agreement.

In November 2021, California American Water, Monterey One Water and the Monterey Peninsula Water Management District all signed a Memorandum of Understanding (MOU) to proceed with a purchase agreement for water provided by Monterey One Water Expansion if the CPUC approved recovery of infrastructure costs advanced by California American Water. The company remains committed to the terms of the MOU.

Other parties to the proceeding may also file with the CPUC applications for rehearing by January 4, 2023, or responses to the rehearing request by January 19, 2023.

Together, the recently approved desalination plant and the Pure Water Monterey Expansion will allow the community to replace water it is currently using from the Carmel River and comply with the direction from the State Water Resources Control Board to do so.

About California American Water:

California American Water, a subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and wastewater services to more than 725,000 people. Information regarding California American Water’s service areas can be found on the company’s website www.californiaamwater.com.

About American Water:

With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 states. American Water provides safe, clean, affordable, and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.

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