CPUC Approves 72% Rate Increase for Sierra City Water
Sierra Water Resources customers will see higher bills starting May 20 under a three-year phased plan.
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Larry Morales, CEO of Sierra Water Resources, during a joint community meeting with the CPUC in September, 2025.
SIERRA CITY — Sierra City water customers served by Sierra Water Resources will face significantly higher monthly bills beginning May 20. The California Public Utilities Commission approved the company’s general rate case on May 14 without discussion as part of a consent agenda. An average residential customer with typical water usage can expect the monthly bill to rise from roughly $90 today to about $125 in 2026, $143 in 2027, and $157 in 2028. The increases apply to roughly 127 active metered connections in the Sierra City area northeast of town along Highway 49.
The commission placed Resolution W-5311 on the consent agenda and adopted it by a unanimous 5-0 vote. The resolution had already been mailed to the public for comment under state law, and the approval process is now complete. Customers have no further opportunity to submit comments on the rates.
The approved rates take effect May 20. Sierra Water Resources must file a supplement to its earlier advice letter to implement the new schedules and cancel the old ones. The company will file additional Tier 1 advice letters 30 days before May 20 of 2027 and 2028 to put the later-year rates into effect. Customers will learn the exact new charges when their revised bills arrive.
The rate hike grants Sierra Water Resources an additional $103,238 in annual revenue, or 72.47% overall. The increase phases in gradually across three years to ease the burden on customers while allowing the small utility to cover operating costs and maintain its system. The company operates a gravity-fed system that draws from two springs and uses five storage tanks. It has no major outstanding safety or compliance issues with state drinking-water regulators.
The decision follows the company’s original request last year and a community meeting in Sierra City that drew local concerns about affordability. Sixteen formal protests and other written comments reached the commission before the vote. The final resolution reflects adjustments made after review of those inputs and company data. Sierra Water Resources, which acquired the former RR Lewis Small Water Company in 2024, may now move forward with the higher rates.
Customers can review the full resolution, CPUC analysis, and new rate schedules at https://tmmlink.com/vO5TSlw.