How are water companies’ revenues and rates evaluated?

The large water (Class A or greater than 10,000 connections) companies' rates are set through the formal general rate case process (see http://www.calwaterassn.com/WaterRates.htm for a detailed description of this process). "Offset" revenue increases, such as an increase to cover a recent increase in electricity rates or wholesale water costs to the water company, may be done through the advice letter process. Smaller water companies file the simpler advice letters for general rate case revenue reviews. Although these are simplified filings, are public meetings in the service area to discuss the proposed increase.

Who uses water from privately owned companies?