American Water - settlement increases customer assistance discounts to 50% in Central California

California American Water, a subsidiary of American Water (NYSE: AWK), has reached a partial settlement agreement in its General Rate Case for 2027 through 2029, which includes an enhancement to its Customer Assistance Program. Under the terms of the agreement, the company will increase its assistance discounts for qualified residential customers in Central California from 35 percent to 50 percent off the typical water bill. The adjustment is part of a broader agreement that also permits the utility to recover additional annualized water and wastewater revenues of $24 million in test year 2027, $21 million in escalation year 2028, and $22 million in attrition year 2029, contingent on continued CWIP in rate base.

The settlement also authorizes Multi-family Assistance Payment Program expansion. The new rates are expected to be implemented effective January 1, 2027, pending final approval from the California Public Utilities Commission (CPUC). The agreement was reached with the CPUC’s Public Advocates Office, and other parties remain involved.

The Customer Assistance Program provides monthly discounts to eligible residential customers experiencing financial hardship. To qualify, applicants must be individually metered or flat-rate residential customers, have the California American Water bill in their name, and not be claimed as dependent. The program requires reapplication every two years.

The settlement reflects the company’s ongoing commitment to infrastructure investment and service reliability, with approximately $750 million in upgrades.