Golden State Water Company (GSWC), a California‑based subsidiary of American States Water Company, received approval from the California Public Utilities Commission in December 2025 for a $32 million increase in its adopted water revenue for the 2026 rate cycle. The announcement of the decision was made on January 12, 2026, and the new revenue level takes effect on January 1, 2026.
The increase is driven largely by a $11 million allocation for capital‑project related revenue that was previously treated as an advice‑letter project. The remaining $21 million reflects a broader adjustment to GSWC’s base rates, allowing the utility to fund a $573.1 million infrastructure plan slated for the 2025‑2027 cycle. The approval also confirms that GSWC met the CPUC’s earnings test, a regulatory requirement that ensures the utility’s revenue growth is supported by its operating performance.
GSWC’s rate cycle covers 2025‑2027, and the new revenue level positions the company to invest in water‑system upgrades, leak‑repair programs, and water‑quality monitoring. The capital‑investment focus aligns with the utility’s long‑term strategy to maintain service reliability while managing cost growth. For American States Water Company, the approval reinforces a “hybrid earnings profile” that blends the predictable dividend history of a regulated utility with the earnings volatility introduced by GSWC’s transition to a modified rate‑adjustment mechanism in 2025.
Management emphasized the importance of the decision: “We are pleased to have received a proposed decision approving the settlement agreement in its entirety for our water general rate case, which allows GSWC to continue investing in utility infrastructure to deliver safe and reliable water services to the communities we serve.” The comment underscores the company’s confidence in its ability to balance regulatory compliance with capital‑investment needs.
The regulatory approval is a key milestone for GSWC and its parent, as it secures the revenue foundation needed to support ongoing infrastructure projects while maintaining the dividend track record that attracts income‑focused investors. The decision also signals to regulators and stakeholders that GSWC’s financial performance remains robust enough to justify the rate increase, reinforcing the utility’s long‑term stability.
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