The for-profit company providing water for six Santa Clara County cities will walk back proposed rate hikes over three years. But watchdogs say the cuts are a sham and residents will still face higher water bills.
San Jose Water Company initially proposed to hike rates by a total of 20% through 2027. A proposed settlement agreement between the company and state Public Advocates Office could slash that to 10%. While that might seem like a win for taxpayers, observers said other increases have taken effect between the time San Jose Water filed its rate hike on Jan. 2 and the settlement proposed on Monday.
San Jose Water’s Jan. 2 proposal aimed to raise average residential rates from $107 to $120 a month in the first year. Rates would now go from $117.91 to $122.94 per month, according to San Jose Water representatives, even if the settlement shrinks the increase. The company serves 1 million customers across San Jose, Cupertino, Campbell, Monte Sereno, Saratoga, Los Gatos and unincorporated parts of Santa Clara County.