Residents in Orcutt and parts of Santa Maria and Nipomo may have recently received notices from Golden State Water Company about a proposed water rate increase.
The company’s 2026 General Rate Case outlines proposed rate changes for 2028 through 2030, including a 36% increase, or approximately $45 more per month, for customers in unincorporated areas of the Santa Maria Valley.
The proposal has prompted concerns among some residents who say they are already paying high water bills.
“It’s ridiculous,” said Carolyn Castillo, an Orcutt resident. “We pay a lot in water already, and just the increase itself, it’s really going to be hard to just pay the bill now.”
Deborah Lewis, a Sisquoc resident, said she is already paying a high bill.
“This is very bad timing right now to raise the water because I’m already paying over $80 a month, and I am not happy with the water system because there’s a lot of calcifications in the way where it has a funny taste,” Lewis said.
Golden State Water General Manager Mark Zimmer said the proposed increase would help fund upgrades and replacements to aging infrastructure.
“Significant factors of that increase is investing in infrastructure,” Zimmer said. “So we have groundwater wells. We have storage tanks. We have pipelines, fire hydrants, all of which have a useful life that we have to replace those items at certain intervals.”
Zimmer said some of the company’s infrastructure is decades old, with some facilities approaching 70 years.
He said upgrading the infrastructure is important to maintaining reliable water service.
“We have eight different water systems here on the Central Coast, four in Santa Barbara County and four in San Luis Obispo County. During times where the water’s needed, whether it’s stored or for fire protection, we have to make sure that this equipment operates when needed," Zimmer said.
The notice also outlines a proposal to consolidate Golden State Water’s Santa Maria and Los Osos customer areas into a new regional rate-making area.
“Here on the Coastal District, we have three different rate-making areas, and what we want to do is consolidate these into one rate-making area,” Zimmer said. “This allows us to provide the infrastructure necessary without considering the rate impact on a specific system.”
If the consolidation gets approved the total increase revenue would be 36.8% and if denied it would stay at 33.8%
Zimmer said residents can expect additional notices in the coming months with more information about the proposed rate increase and opportunities for community input.
The California Public Utilities Commission, which regulates Golden State Water, will hold a public participation hearing as part of the rate case process, KSBY News reached out for information but we have not heard back.
“There’s going to be a public hearing that’s going to be set by the California Public Utilities Commission, and this is where customers can actually engage in the process and submit their comments to the commission and actually participate in that hearing,” Zimmer said.
The proposed rates are not final. The 2026 General Rate Case will be reviewed by the CPUC before any new rates can take effect.
If approved, the proposed rates could begin in 2028.
Click here for more information on the water rates and to know if your area would be affected.
