California American Water announced that it will sign a new Pure Water Monterey Expansion (PWMe) agreement.
Pure Water Monterey focuses on water recycling to replenish groundwater supplies. The expansion project would increase the facility’s capacity by over 60%.
The announcement comes in response to an order issued on March 30 by the California Public Utilities Commission (CPUC) regarding the American Water subsidiary’s Application for Rehearing of Decision 22-12-001. The order denies a rehearing but modifies several critical portions of the decision.
In its original PWMe decision, issued in December 2022, the Commission delayed recovery of infrastructure investments made by the company to support the project and denied recovery of the company’s actual financing costs. California American Water requested the CPUC review the decision.
“Since 1995, residents of the Monterey Peninsula have faced an uncertain future for their water supply,” said Kevin Tilden, president of California American Water. “Today, with desalination and water reuse in process, and aquifer storage and recovery on line, the Peninsula now has a secure water future. This will protect the Carmel River while providing water needed for the community. I want to thank everyone who worked hard on each of these projects to bring them to fruition.”
In the latest order, the CPUC made changes to its original decision. California American Water will be allowed standard ratemaking treatment for the construction funding of the pumps and pipes that were built to support the expansion. The company is also required to file additional information about proposed extraction wells that parties agree are needed to deliver PWMe water from the Seaside Aquifer to customers across the service area.
