Foreign Ownership

In California the people of California own and control all drinking water, regardless of who operates the local water system. The state regulates rights to distribute this water, whether the water system is operated by a city, special water district, or a private company, domestic or foreign, The core values for all water providers are to efficiently and reliably provide a high quality product.

California American Water is a wholly owned subsidiary of American Water, with a history of over 100 years providing high quality water, wastewater, and related services to over 18 million customers in 29 states and 3 Canadian provinces. American Water is part of RWE Thames Water, the third largest water and wastewater services company in the world.

Through our combined experience and financial strength, we provide customers with global expertise in water quality, research and development while guaranteeing friendly, local customer service, 24 hours a day, seven days a week.

It is clear that over the next twenty years, meeting the rising costs of water safety compliance, often associated with replacing old infrastructure, adhering to stringent environmental and health standards and upgrading system security, will require financial resources that many municipal utilities don’t have.

Despite a strong and proven performance record, skeptics often propagate regulatory, cost and service misconceptions about foreign owned, investor owned companies like California American Water.

The Facts:

• First, investor owned utility companies are among the most heavily regulated industries in the country and are subject to the same regulations as any domestically owned utility.
• California American Water works with numerous state and federal governmental agencies, including:  the California Public Utilities Commission (CPUC), the State Water Resources Control Board and the Department of Water Resources to ensure our customers receive quality water and dependable service at a fair price.
• Every drop we deliver meets or exceeds stringent safety standards for public drinking water established by the California Department of Health Services and the U.S. Environmental Protection Agency. We collect and analyze thousands of water samples each year. Highly trained chemists, microbiologists and technicians staff our state-certified laboratories. We work hard every day to make sure our customers have a refreshing and steady supply of water every time they turn on the faucet.
• Second, in any model of water service (municipally owned and operated or privately owned and operated) the control of the water itself stays in public hands.
• In short, California American Water does not own the water. Our job is to treat and deliver fresh, reliable water to the tap. We do not buy or sell water as a commodity.
• The California Public Utilities Commission (CPUC) determines which communities we may serve and sets rates we may charge customers for water service. Only the CPUC may authorize a utility to charge higher rates to (a) recover appropriate expenses, and (b) provide a fair return on the utility’s capital investment.
• California American Water prides itself on maintaining a rigorous operating discipline, as well as insightful planning, ample capital investment, experienced managers, state-of-the-art water quality programs, and responsive customer service. By using these tools successfully, the company has achieved a high standard of efficiency and performance for our customers and in doing so has been able to keep our water rates comparable to those paid by municipal utilities.
• Lastly, California American Water is a business. Our business is to provide service excellence; timely, personalized solutions; and to safeguard the health and welfare of our customers.
• Our highly trained customer support team is on call 24 hours a day, seven days a week to answer any question or to address a problem. From understanding where the water comes from and how rates are set; to reading and understanding a billing statement and saving money through conservation, California American Water provides the necessary tools to ensure our customers get the best service possible.