Your Rates are changing

In December of 2018, the California Public Utilities Commission issued a decision in California American Water’s General Rate Case covering costs for the years 2018-2020. Due to a delay in the decision, the CPUC ordered California American Water to simultaneously implement the 2018 and 2019 rate changes. These rate adjustments affect all customers in the Central Division (Monterey Main, Bishop, Ryan Ranch and Hidden Hills service areas) and became effective in June 2019.

What are the major changes to the rate design?

  • Rate increases for both the 2018 Test Year and 2019 Step Increase coming out of Commission Decision
  • A rate decrease, to reflect the most recent year’s water consumption through the Annual Consumption Adjustment Mechanism (ACAM).
  • A rate increase, for cost recovery of the recently constructed Monterey Pipeline and Pump Station Project.

The majority of the cost increase you see is to pay for new infrastructure to serve the community’s water needs. Our community’s current major water supply sources, the Carmel River and the Seaside Basin, are restricted by the State of California. The Carmel River, where the majority of our water comes from, simply cannot sustain our community’s use and support the wildlife and other habitat that depend on it.

Since 2012, we have collaborated with various agencies to develop the Monterey Peninsula Water Supply Project, which will replace our overreliance on the river with a combination of seawater desalination, recycled water and better managed use and storage of high flow periods on the river. The Monterey Pipeline is now reflected in your rates and is a key part of this program, which will protect our community from drought and avoid severe water restrictions for years to come.

What will be the average rate impact due to these changes?

The average monthly increases are estimated to be as follows:


100 gallon units (CGL)    

New Rates

Single Family






Low Income






*Assume Division 1 customer

When will these changes go into effect?

The new rates will be reflected in customers’ June 2019 bills.

How does the residential rate plan work?

Rates feature five pricing tiers. The amount of water allowed at each tier is standardized for single family and multi-family residential customers.

During each billing period, your household water use starts in the first tier, where the price per 100 gallons is the lowest. Each tier has a certain amount of water allocated to it – if you use more water than is allocated to a particular tier, you move to the next higher-priced tier.


Single Family Rates (Effective June, 2019)

Tier 1  

0 to 29.9 CGL


Tier 2  

30 to 59.8 CGL


Tier 3  

59.9 to 104.7 CGL


Tier 4  

104.8 to 172 CGL


Tier 5  

More than 172 CGL  


Multifamily Rates (Effective June, 2019)

Tier 1  

0 to 18.7 CGL


Tier 2  

18.8 to 37.4 CGL


Tier 3  

37.5 to 50.5 CGL


Tier 4  

50.6 to 69.2 CGL


Tier 5  

More than 69.2 CGL  


Non-residential Rates (Effective June, 2019)

Division 1  

Rate for all units   


Division 2  

Rate for all units  


Division 3  

Rate for all units  


Division 4  

Rate for all units  


What are the new monthly service charges?

The new monthly service charges will be as follows: (Effective June, 2019)

Meter Size    












1 ½


















How much will the current WRAM surcharge?

The WRAM surcharge is unchanged from last year and is as follows:

Meter Size    












1 ½”



















What is the current Low Income Ratepayer Assistance program?

A qualified customer will receive a 30% discount on their monthly service charge and the rates in Tiers 1 through 4.

What resources are available to help customers save water and money on their bills?

California American Water offers robust conservation incentives including generous rebates for indoor appliances and efficient outdoor irrigation technology. Free devices including low flow showerheads, sink aerators and positive shut-off hose nozzles are also available at our business office during normal hours. In addition, customers may schedule a water wise house call, in which our conservation specialists will visit your home and make recommendations on ways to save water. Visit or call 831-646-3205 for more information.

Customer Bill Calculator

For customer convenience, we have an online single-family home Customer Bill Calculator. The calculations are intended for estimating purposes and are not a replacement for an actual utility bill.


How to read your bill

We offer a step-by-step instruction worksheet on how to read your bill. This online document will help you learn about how your bill is calculated as well as how to analyze your comparative monthly usage. It also includes important payment information and information regarding various surcharges that may appear on your bill.


Conservation programs

You are not alone in your effort to conserve water. We offer services, information and free water devices that could help you save water. This includes our Water Wise House calls where you can schedule one of our customer service representatives to come to your home and look for leaks and other opportunities for water savings.


Fact Sheets

Monterey Rate Change
Monterey Rate Change Non Residential
Meter Fact Sheet