San Jose Water

What San Jose Water does

San Jose Water is a regulated private water utility serving over one million people across the greater San Jose metropolitan area (San Jose, Campbell, Cupertino, Los Gatos, Monte Sereno, and Saratoga) in California. Founded in 1866 and operating as a wholly owned subsidiary of H2O America (NASDAQ: HTO), the company runs a roughly 140-square-mile service territory built on 2,400 miles of water mains, 106 tanks and reservoirs, 20,143 hydrants and 35,143 valves — an asset base representing more than $1 billion of capital investment over the past decade.

The product portfolio centers on regulated drinking water delivery, supported by Advanced Metering Infrastructure (AMI) smart meters (over 125,000 installed as of year-end 2025, with full deployment targeted by 2027), the SJWaterHUB customer portal for billing and usage tracking, an acoustic-based Advanced Leak Detection Program (Echologics Echoshore-DX), SCADA-based control systems, and AI-supported wildfire smoke detection sensors spanning over 24,000 acres of the Los Gatos Creek Watershed. Customer-facing services include the CATCH water-efficiency program, the PromisePay interest-free payment plan for past-due accounts, the income-qualified Customer Assistance Program (CAP), and 18,000+ annual water quality tests covering 200+ parameters. Capital projects advancing through 2026-27 include the Cambrian Station 16-million-gallon storage tanks, a $3 million Direct Potable Reuse demonstration facility, and a dedicated PFAS treatment facility at Williams Station.

The business operates under CPUC cost-of-service regulation, recovering a fixed service charge (tied to meter size, currently recovering ~45% of fixed costs, up from 30%) plus a tiered variable quantity charge based on CCF consumption. Revenue is supplemented by one-time connection and service fees for builders/contractors and small transaction fees from payment processors (e.g., $1.50 ACH fee via PromisePay). The 2025-27 General Rate Case authorizes $450 million of infrastructure investment over three years, supporting approximately $120 million of annual capex and a 2.8% rate increase effective January 2026. Within H2O America, San Jose Water is the largest operating subsidiary by population served and directs most of the parent's visible regulatory capex program.

Name

San Jose Water

Legal name

San Jose Water Company

Website

https://sjwater.com

Company type

Private

Founded year

1866

Operating status

Operating

Headcount range

251–500 employees

Short description

San Jose Water is a regulated private water utility serving over 1 million people across the greater San Jose metropolitan area, wholly owned by H2O America. The company delivers drinking water through 2,400 miles of mains, AMI smart meters, the SJWaterHUB portal, and a CPUC-approved $450 million 2025-27 infrastructure program.

Ownership category

akta.pro rank

Product category

Water Utility Services

NAICS

Water, Sewage and Other Systems (2213), Water Supply and Irrigation Systems (22131), Water Supply and Irrigation Systems (221310), Utilities (221)

SIC

Water Supply (4941), Electric, Gas & Sanitary Services (4900), Water, Sewer, Pipeline, Comm & Power Line Construction (1623), Totalizing Fluid Meters & Counting Devices (3824)

akta.pro primary industry

Drinking Water Distribution Network Operations (Mains, Valves, Hydrants, Service Lines) (EUANAAAE)

akta.pro secondary industries

Water Quality Monitoring, Compliance & Reporting (Sampling, Lab, Regulatory) (EUANAAAG), Monitoring & Control (Dosing Systems, Remote Monitoring, Sensors) (BPABAJAK), Water & Wastewater Pipeline Construction (Mains, Force Mains, Interceptors) (IMAFAGAC)

Keywords

• Regulated water utility
• Water distribution services
• Drinking water supply
• Water infrastructure
• Customer water services

Headquarters

HQ city

Pasadena

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Technology or R&D, Supply Chain, Marketing or Sales

Revenue model

1. Water Utility Service Revenue: SJW generates revenue through regulated water utility rates. Rates are set by CPUC based on 'cost of service' meaning operating costs are passed through without markup. Revenue comes from two main components: (1) fixed service charge based on meter size that covers fixed costs like water mains, tanks, wells, and personnel; (2) variable quantity charge based on water consumption measured in CCF (100 cubic feet). Currently recovering approximately 45% of fixed costs through service charge (up from 30%).
2. Connection and Service Fees: Fees for new service connections, main extensions, portable meter rentals, and other one-time service requests from builders and contractors.
3. Payment Processing Services: Revenue from transaction fees on certain payment methods (e.g., $1.50 ACH transaction fee for PromisePay plans). Third-party processors handle payment collection.

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels6 records

Core offering

San Jose Water is a regulated private water utility that distributes drinking water to over one million people across approximately 140 square miles in the greater San Jose metropolitan area (San Jose, Campbell, Cupertino, Los Gatos, Monte Sereno, and Saratoga). The company operates more than 2,400 miles of water mains, 106 tanks and reservoirs, and 20,143 fire hydrants, delivering water through a CPUC-regulated monopoly service. Its offerings include core water service, smart meter (AMI) deployment, advanced acoustic leak detection, customer assistance programs, and customer-facing digital tools such as the SJWaterHUB portal.

Product overview

San Jose Water operates as a regulated private water utility serving over one million people in the greater San Jose metropolitan area. The company's product portfolio centers on core water utility services combined with customer-facing digital tools. The primary customer-facing product is SJWaterHUB, a web portal enabling bill payment, water usage tracking, and account management. Supporting infrastructure includes a Smart Meter Program (AMI) that provides remote meter reading and daily water usage data, an Advanced Leak Detection Program using acoustic technology to identify water loss, and the Emergency Water Distribution Unit for disaster preparedness. Customer assistance offerings include PromisePay Payment Plans for past-due bills and the Customer Assistance Program (CAP) providing income-based discounts. Water quality services include PFAS treatment facility development and annual Consumer Confidence Reports with extensive water testing. The Cambrian Station infrastructure project represents major capital investment in water storage capacity.

Differentiator

Problem solved

Functional benefit

Brands

• SJWaterHUB: Customer portal for bill payment, water usage tracking, and account management
• CATCH
• PromisePay

Products and services

• Water Service
• SJWaterHUB Customer Portal
• Smart Meter Program (AMI)
• Advanced Leak Detection Program
• PromisePay Payment Plans
• Customer Assistance Program (CAP)
• CATCH Water Efficiency Program
• Water Quality Testing and Reporting
• Service Line Inventory Portal

Quantifiable outcome

• 376 million gallons of water saved through advanced leak detection in 2025
• +7 more outcomes

Named customers7 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration7 records

AI capability6 records

Feature5 records

Partnerships

Five partnerships are on record, tiered strategic and core.

• San Francisco Public Utilities CommissionstrategicStrategic or Co-development Partner · 22 April 2026SJW is collaborating with SFPUC on the Direct Potable Reuse (DPR) proof-of-concept demonstration project. SFPUC shares technical insights and best practices for advanced water treatment technologies to improve regional water resilience.
• South Bay Water RecyclingstrategicStrategic or Co-development Partner · 22 April 2026SJW is collaborating with South Bay Water Recycling on the Direct Potable Reuse demonstration project to test advanced treatment processes for converting recycled water into drinking water across multiple service area locations.
• Invoice CloudcoreTechnology or Integration · 20 February 2024Invoice Cloud serves as SJW's payment technology provider, enabling online bill payment, auto-pay enrollment, paperless billing, and electronic notifications. Supports multiple payment methods including Apple Pay, Google Pay, PayPal, and Venmo. Integration with SJWaterHUB customer portal.
• PromisecoreTechnology or IntegrationSJW partnered with Promise, a technology company specializing in affordable payment plans, to provide PromisePay payment plans for customers with past-due water bills. PromisePay offers interest-free, flexible payment options for residential and commercial customers with past-due balance of $100 or more. Transaction fees: $1.50 for ACH, free for credit/debit cards.
• CheckFreePaycoreChannel Partner/ Reseller/ DistributorCheckFreePay is the largest processor of walk-in bill payments in the US, providing SJW customers with in-person cash payment options at 20+ locations in the service area. Convenient alternative for customers who prefer to pay bills with cash.

Scale indicators11 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• California Water Service Group: Investor-owned California regulated water utility (NYSE: CWT) serving 2M+ people across California, Hawaii, Washington, and New Mexico. Closest direct competitor to SJW in the same CPUC rate-setting environment and service mix, with comparable capex-driven growth profile.
• Golden State Water Company: California regulated water and wastewater utility, subsidiary of American States Water (NYSE: AWR). Operates under the same CPUC regulatory framework as SJW with comparable service offerings to similar regulated residential, commercial, and industrial customers.
• East Bay Municipal Utility District: Largest publicly owned water and wastewater utility in the San Francisco Bay Area, serving ~1.4M customers. Direct geographic peer operating adjacent to SJW's footprint under overlapping regional water-quality and supply dynamics, including shared wholesale supplier (SFPUC).
• San Francisco Public Utilities Commission: Public water and wastewater utility serving San Francisco and surrounding Bay Area communities. Active DPR collaboration partner of SJW, with overlapping rate-base-driven capital programs and shared drought resilience agenda in Northern California.
• Suburban Water Systems: California regulated water utility serving portions of Los Angeles, Orange, and San Bernardino counties under CPUC jurisdiction. Identical rate-setting environment and customer mix as SJW; SJW's new VP of Regulatory Affairs previously served as VP of regulatory and finance at Suburban Water.
• Liberty Utilities: Multi-state regulated water, wastewater, and electric utility with California operations. Operates under the same CPUC framework as SJW and competes for the same institutional water-utility talent pool in California.

Broad incumbents

• American Water Works Company: Largest publicly traded US water and wastewater utility (NYSE: AWK), serving ~14M people across 14 states. Operates at vastly greater scale than SJW but within the same investor-owned utility model with state-level rate-base economics and AMI/smart-meter deployment comparable to SJW's roadmap.

Others

• Valley Water (Santa Clara Valley Water District): Wholesale water supplier and groundwater management agency providing imported water to SJW through three treatment plants. Functions as SJW's upstream water supplier rather than a competitor, but directly sets the wholesale input cost that drives SJW's rate escalation.
• Connecticut Water Company: Sister company under the H2O America (NASDAQ: HTO) parent along with Maine Water and Texas Water. Not a direct competitor (different geography), but operates an analogous regulated water utility business model under Connecticut PURA jurisdiction and shares parent-level capital allocation.
• Maine Water Company: Sister company under H2O America parent operating regulated water utilities in Maine. Comparable investor-owned regulated utility model with similar rate-base economics, illustrating how SJW fits into the parent's broader portfolio strategy.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/sjwaterco
• Facebookfacebook.com/sjwaterco
• LinkedInlinkedin.com/company/san-jose-water
• Instagraminstagram.com/sjwater

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about San Jose Water