Considering all that is required to deliver a clean, adequate supply to the tap, water is a real bargain. For less than a penny a gallon, water providers pump local groundwater and/or secure an imported supply, maintain and improve water system infrastructure, conduct water quality tests, treat and/or filter water supplies, read meters, send bills, answer customer calls, and provide conservation information to the public.

The California Public Utilities Commission (CPUC) is responsible for setting the rates of investor-owned water utilities. In doing so, the CPUC must balance the customers' needs for a safe, reasonably priced water supply with the shareholders' right to a fair return on investment. Before the CPUC grants a water rate increase for any investor-owned water utility, it conducts a thorough audit of that utility's finances and operations to determine whether an increase is justified.

For more detailed information about the CPUC and the rate-setting process, select the buttons at the left.