How Cal Am's Income is Spent

Where Does the Money We Pay Cal Am Go? 


Cal Am collected $60,000,000 from Peninsula customers in 2016. Below is a summary of how that money would be spent under local public ownership:

  • Approximately $19,000,000 (32%) was spent on corporate profit and taxes. That money left our community and was sent to Cal Am’s parent company, American Water, in New Jersey as profit ($14,000,000) and corporate taxes ($5,000,000). Profit includes Cal Am's authorized 9.99% return on equity, plus other revenue from water sales, as reported to the CPUC.
  • Approximately $8,000,000 (14%) was spent on non-local support services outside the area (billing, call center, accounting, engineering, management and more). These services will continue, but they can be relocated to the Peninsula, creating new jobs and local investment.
  • Approximately $32,000,000 (54%) was spent on local operations. This cost would remain with public ownership. Existing operational employees would transfer to a Monterey Peninsula Water Management District payroll, and would continue with existing or comparable wages and benefits. Some Cal Am management positions will likely continue under new contracts.

These percentages were relatively constant in prior years, and serve as a solid basis for estimating future years.