California American Water Proposes Easing Monterey Peninsula Moratorium

California American Water submitted formal testimony to the State Water Resources Control Board, backing the Monterey Peninsula Water Management District’s application to modify the long-standing ban. Company president Sarah Leeper emphasized that the region has reached a point where it can support a temporary suspension of the moratorium. This shift aims to provide local economic flexibility while maintaining essential environmental safeguards for the Carmel River watershed and its steelhead population.

Despite the push for relief, the utility remains cautious. The California Public Utilities Commission has projected a potential annual water shortfall of 815 million gallons by 2050, highlighting the necessity of a permanent, drought-resilient supply. While recycling and aquifer storage contribute to regional stability, the company maintains that a desalination plant remains the only viable solution to fully decouple the Peninsula from its reliance on river pumping. Leeper warned that any removal of the current order must include strict guardrails to prevent future demand spikes from jeopardizing decades of ecological restoration. Public testimony on the proposal is scheduled for November 5, 2026.