Proposed California water rates raise fresh worries for residents already squeezed by costs

Los Osos residents who already feel squeezed by high water costs may face another strain on their monthly budgets.

A proposed rate plan tied to future infrastructure work is fueling fresh concern in a community where many residents say basic water service is already expensive enough.

Here's what to know

For its Los Osos customers, Golden State Water Company has asked for a rate structure covering 2028 to 2030, according to KSBY.

The utility said the plan would support pipeline replacement work, a replacement groundwater well, and a study on whether the system could eventually connect to the State Water Project's Coastal Branch.

The California Public Utilities Commission is expected to decide in late 2027. If the proposal is approved, residential and commercial customers would not see rate changes.

Without approval, the company's figures show a different outcome: a residential customer using 3,740 gallons per month could see a bill increase from $116.40 to $148.25, while a commercial customer using 14,960 gallons per month could see a bill increase from $331.16 to $409.12.

More background

Water systems require maintenance, and supply planning is especially important in drought-prone California.

Chris Keith, a Golden State Water Company customer who said he has lived in Los Osos for 13 years, told KSBY that he has watched the cost of water rise over time.

"We're definitely water payers," Keith said. "It's safe to say it's become very, very expensive."

He said some households can face especially large totals each month: "I think we're at about $1,000 a month. I would be a little off because Shaline does the bills because they make me cry."

What's being done?

State regulators at the California Public Utilities Commission are set to take up the request, with a ruling expected in late 2027 on whether the proposed structure moves forward.

Golden State said the funding would go toward replacing pipelines, drilling a replacement groundwater well, and studying a possible future tie-in to the State Water Project's Coastal Branch.

Keith said, "Every $50 or $70 counts now."

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