Donald Roger Liddell's questions to SJW leadership • Q4 2024
Question
Asked about the replicability of California's low unaccounted-for water rate, potential fire hydrant vulnerabilities in SJW's systems, lessons learned from the Aquarion sale in Connecticut, and the reasons for the increased PFAS cost estimate in Connecticut.
Answer
California's low non-revenue water rate (under 6%) is world-class due to technology like acoustic leak detection, and these learnings are being applied elsewhere. SJW systems have state-of-the-art hydrants and are not designed for firestorms. The company could not comment on the Aquarion sale due to NDAs but noted it was an unusual situation. The PFAS cost estimate increased as treatment plans were refined; recovery will be sought via rate cases and a potential new water quality adjustment mechanism, with costs partially offset by legal settlements from polluters.