09:41 AM EDT, 08/20/2024 (MT Newswires) -- SJW Group's ( SJW ) unit, San Jose Water, said Tuesday that it has reached a settlement deal with California's Public Advocates Office over its alleged inclusion of chemical and waste disposal costs in the company's full cost balancing account, and for allegedly adjusting its service charge calculation.

San Jose Water said the agreement requires it to invest $450 million over three years in drinking water infrastructure in its local service area.

The company said the agreement also further aligns actual compared to authorized usage through a lower sales forecast, provides for greater revenue recovery through the service charge, and approves the recovery of $15.8 million from balancing and memorandum accounts.

The California Public Utilities Commission must approve the settlement, which is expected in Q4 with the new rates effective Jan. 1.

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