Celebrating World Water Day: Interview with Water Division Director Terence Shia

"Our mission for the Water Division is to assure our regulated water utilities provide clean, safe, and reliable service to ratepayers. This closely aligns with our value of stewardship as we are entrusted to maintain water quality and service as one of the most important natural resources California has to offer."

March 20, 2026 -

Terence Shia is the California Public Utilities Commission’s (CPUC) Water Division Director. He has been with the CPUC for 18 years, and he leads a team of 27 dedicated public servants who help protect one of California’s most essential natural resources by maintaining water quality and services. The CPUC regulates large and small investor-owned water companies. “ Class A ” have greater than 10,000 service connections, and smaller water utilities have less than 10,000 service connections, down to as few as a dozen. The Water Division provide s technical guidance to decision - makers, including Administrative Law Judges and Commissioner Offices, and ensures water companies comply with CPUC rules and regulations. Terence shares with us his thoughts on the water industry and his role at the CPUC.

Why are you passionate about water systems and water utilities? How did your interest develop?

I wish I could say I had some grand backstory or deep personal background into why I chose this path, but it would be more realistic to say that I fell into this path or this path chose me. M y background is in Mechanical Engineering. I graduated during an early recession in 2008, so career choices were limited. I had a prior engineering internship with the w astewater group at the San Francisco Pu blic Utilities Commission, but they were not hiring full-time positions due to the recession. A college friend of mine had just started working at the CPUC and told me there were openings with the Water Division, and I thought working in water may be cleaner than working in wastewater (cue the “Dirty Jobs” episode with Mike Rowe going to a wastewater plant). S o, I applied and beg an my engineering career working with the small water utility section.
This is when my interest in water developed, as I began going on field inspections and conducting outreach with small water utilities as part of the General Rate Case (GRC) process for these utilities. Going to some of these remote locations near the Sierra ’s or along the North Coast allowed me to connect with the owner s / operators who were responsible for maintaining their water systems and overseeing the financial aspects of running their water utilities. Hearing their stories of not wanting to raise rates for their neighbors or customers even though the utility hadn’t increased rates in more than a decade gave me a dose of reality even though I was in the position of a regulator. Seeing one operator traverse a steep cliffside to an isolated, gravity-fed water tank wh ile I was struggling for balance made me see the passion and care in the work they do. My role as a regulator meant more after connecting with the people in the actual service of providing clean drinking water, and that’s when I knew I could carve out a longer career path in water, which led me to my current role as Director for the Water Division.

What are some key priorities for the Water Division in 2026?

Our main areas of focus for 2026 include continuing the Compliance Monitoring and Enforcement Program (CMEP) for small water utilities to ensure compliance with CPUC statutes and rules. My team will also wrap up the Water Acquisitions Proceeding to improve and streamline the acquisition process for water utilities, especially those that are at-risk or failing. We are also beginning work on a Rulemaking to address the existing Water Rate Case Plan that will tackle ongoing policy issues, such as water conservation and timing of GRCs.

World Water Day on March 22 places a particular focus on access to safe water.

In California, what progress do you feel has been made in ensuring communities have access to clean water?
What role has CPUC played in achieving this?

The CPUC’s role in ensuring communities have access to clean, safe drinking water is aligned with the Water Division’s key priorities for 2026, where we are conducting outreach to our small water utilities as part of the CMEP and ensuring that they meet clean drinking water standards. This is done in close partnership with our sister agency, the State Water Resources Control Board (SWRCB), which has primary oversight of water quality drinking standards for all water systems in California, including public and private. Our work includes assisting utilities that have not undergone the CPUC’s GRC process in quite some time, or have outstanding water quality issues with the SWRCB, so that we can assist in developing adequate rates to provide the quality of service needed for the company to provide clean drinking water to its customers.
Our team’s efforts in the Water Acquisitions Proceeding will also help streamline what has been described as a difficult and long water system acquisition processes. The goal is to have larger water utilities provide economies of scale in acquiring smaller, often problematic water utilities and help bring them into compliance to provide safe drinking water.

Holding a leadership role, what is your mission for the water division? How does it contribute to CPUC's core values?

Our mission for the W ater D ivision is to assure our regulated water utilities provide clean, safe, and reliable service to ratepayers. This closely aligns with our value of stewardship as we are entrusted to maintain water quality and service as one of the most important natural resources California has to offer. We must also hold ourselves accountable for the rates that are charged to customers and assess the reasonableness of these charges while conducting our work with open communication. We communicate transparently and widely with water industry stakeholders, small water owner/operators, and ratepayers that have questions about the regulatory process.

What is the most rewarding aspect about working at the CPUC?
The most rewarding and fulfilling aspect of working at the CPUC is being able to serve as a mentor and walking newer staff through the many career paths at the CPUC. I especially enjoy sharing my own path of going through the e ngineering career field and instructing others on how to progress in their own career. I am always willing to speak with anyone that would like to pursue career progression at the CPUC, senior or more advanced roles at the C PUC, or the logistics of obtaining a Professional Engineering license.

Terence manages a team of 27 that's responsible for regulating small and large investor-owned water utilities. What advice would you give someone just starting out in their career? This question always reminds me of a great teacher I learned from named Master Yoda, who said, “always pass on what you have learned.” I have taken this as my charge to be a mentor now, but for those that are just starting out, I would advise them to seek out mentors because there are many that are willing to help, especially here at the CPUC. We are fortunate to have an abundance of institutional knowledge here, and willing mentors to pass on what they have learned, so I would remind newer staff not to be hesitant in reaching out.
If all else fails, I’m also reminded of another great Yoda saying, “Patience you must have my Young Padawan.” In our current age of immediate gratification and 2-day delivery, it’s hard not to expect things to move at the same lightning pace at the CPUC, but I like to remind people that the CPUC may be a slow moving ship sometimes given the nature of our work, so it helps to have some patience, as things will eventually start flowing faster.

By Andrea Marvin, Public Information Officer