SJW Group announces CPUC approves proposed cost of capital decision

The California Public Utilities Commission, or CPUC, has adopted the proposed decision in the cost of capital proceeding for San Jose Water for the years 2022 through 2024, the company announced. The final decision established an 8.80% return on equity, a 5.46% cost of debt, and a capital structure of 54.55% equity and 45.45% debt resulting in an overall rate of return of 7.28%. San Jose Water was previously authorized for a return on equity of 8.90%, a 6.20% cost of debt, and a capital structure of 53.28% equity and 46.72% debt – resulting in an overall rate of return of 7.64%. “We appreciate the commission’s thoroughness in the review of our application and its balanced outcome. We look forward to continuing to invest in our water system and delivering on our public health mission to customers and communities,” said San Jose Water Vice President of Regulatory Affairs and Customer Service John Tang.