By
Rick Elkins
Visalia - Only three customers turned out last week for California Water Service Company's informational meeting on its proposed 60 percent rate hike that will be phased in over two years beginning in 2011.
Cal Water is seeking approval from the California Public Utilities Commission for a rate increase that will raise the monthly cost of water for the average Visalia homeowner by more than $17 a month by 2013. The three customers had little to say or ask of the private water company's officials who made their case for the substantial rate hike request that would begin with a 21.1 percent increase in January of 2011. The next year, rates would go up 22.3 percent and then in January of 2013, another 18.2 percent, if Cal Water's request is granted.
The average increase from the first year hike would be $4.96 (about 17 cents per day) in 2011; $6.21 (about 21 cents per day) in 2012; and another $6.21 in 2013. Residents pay $23.71 a month now.
Remaining flat-rate customers with lot sizes of 6,001 to 10,000 square feet would see a monthly increase of $6.82 in 2011 and $8.84 in 2012, although Cal Water plans to complete metering all flat-rate services in that year.
The Visalia utility filed its application with the California Public Utilities Commission (CPUC) in July. Darin Duncan, Cal Water manager of rates, said the PUC should make a decision after the middle of next year.
“Cal Water's a for-profit water service,” explains Duncan, adding by law it can return 25 percent profit on its investment.
He said the rate increase is to cover
growing operation costs as well as to pay for more improvements to the
system, including a third 2 million gallon water storage tank. At last
week's city council meeting, the sale of land on the east side of McAuliff
Street at Mill Creek Parkway for the tank was approved by the council.
Cal Water is finishing up work on two new tanks, both on Riggin, which
will go into service in the next 30 to 60 days.
Duncan said there is no certainty
that the entire rate hike will be approved. The PUC can decide to grant
part of the hike, but it cannot increase the request, he said.
“It's likely they'll approve some of our requests and have issues
with some others,” he said.
Cal Water has 38,567 customers in
Visalia, manages 492 miles of pipeline, and has 72 active wells, seven
treatment plants, four storage tanks and four booster pumps.
It plans, said Duncan, to add the new storage tank, install new emergency
generators to keep water flowing in case of a blackout, make computer
system improvements, build more treatment plants and finish installing
water meters at all sites – about 16,757 to go.
“We've increased this program to get it done in two years,” said Duncan of the switch to meters.
However, he said the capital projects are not prompting the rate hike request alone. He said goals to increase conservation – water usage is to be reduced by 20 percent – and an increasing need to treat water, are raising the cost of doing business.
The rate increase request comes on the heels of the city of Visalia raising sewer and garbage collection rates. The council approved those increases in June, adding another 7 percent to the already planned hike in sewer fees over the next three years – a total of a 12 percent increase – and 1.5 percent increase to the already established increase for garbage – adding $3-4 per month to the average bill.
Duncan said those increases, which come on the water bill, are causing confusion for customers who think water rates just recently went up. The utility's last general rate case was filed in and became effective in .
Customers can provide input to the CPUC in writing or at a PUC Public Participation Hearing that will be held in January. Duncan did not have an exact date or location. Information on these events will be announced in customers' bills and at www.calwater.com.
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