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The California Public Utilities Commission (CPUC) held a public hearing for California residents, Thursday, January 23, regarding California Water Service's proposed rate increases, which would potentially raise the rates of customers, the company serves.
The Kern Valley Sun attended two sessions of this public hearing via telephone. Cal Water serves Arden, Bodfish, Camp Erwin Owen, Countrywood, Kern River Valley, Kernville, Lake Isabella, Lakeland, Mountain Shadows, Onyx, Ponderosa Pine, Riverkern, Sierra Trailer Lodge, South Lake, Split Mountain, Squirrel Mountain and Wofford Heights as well as many other areas of California.
The Public Hearing, A2407003 was with regard to an application from the California Water Service Company, also known as Cal Water requesting authorization, firstly, for increased rates by $140,558,101 or 17.1% in test year 2026. It also included, secondly authorization to increase rates again in January 2027 $74,162,564 or 7.7%. Thirdly, it requested authorization to increase rates in January 2028 by $83,574,190 or 8.1% in accordance with the Rate Case Plan.
The application of Cal Water also included adopting “other related rulings and relief necessary to implement the California Public Utilities Commission's ratemaking policies.”
According to Cal Water's statement the company is seeking to address rising operational and capital costs, to upgrade and modernize the water system, through proactive infrastructure improvements. These improvements, according to Cal Water, “Are designed to keep water reliable, prevent small problems from getting bigger and more expensive to fix, increase sustainability, and provide high-quality service—both now and in the future.”
Judge Alberto Rosas was Administrative Law Judge assigned to preside over the proceedings. Court reporters were present to record the proceeding.
Commissioner Matthew Baker was the PUC commissioner assigned to the proceeding.
The CPUC takes a look at the details of the request of rate increases. Rosas read the details of the increase and invited the public to participate if they wanted to comment. Some attending were watching on video while others called in via telephone. The public was invited during the hearing to comment for two minutes per customer.
Rosas said that the purpose of the hearing was for the commission to hear directly from the public their opinions on this rate increase.
The Assigned Commissioner Matthew Baker announced that the increase would impact 500,000 plus active connections in California. He also said, "I take all rate increases very very seriously. The burden is on the utility to prove their case that these are just and reasonable rates." The commission assured residents that it would consider public comments with great interest.
Patrick Alexander, general rate case manager, with California Water Service underscored that the company was committed to the public’s interests and wanted to provide safe, reliable and affordable water service and adequate water pressure when it is needed for fire fighters to protect the communities the company serves.
He also said the company offers a customer assistance program for qualifying low-income customers at https://www.calwater.com/assistance/
During the two public hearing meetings there was a total of at least 36 speakers, including 24 speakers at the 1pm meeting, and 12 speakers from the public during the 6pm meeting.
Callers participating in this meeting claiming the rates were reasonable, and those speaking advocating for Cal Water included: California Public Advocates advocating for low income utility customers who claimed Cal Water makes considerable efforts to keep their rates down; a CEO from Livermore chamber of commerce; a resident customer from Redwood Valley area district; California Water Efficiency Partnership in Sacramento; CEO for Torrance Chamber of Commerce representing 829 businesses; Environmental Justice Coalition in Stockton; Business Federation of the Central Valley; the NAACP branch territories; Greater Stockton chamber of Commerce CEO; General manager from the West Basin Water District; Building Industry Association of the Greater Valley a building industry
association for home builders; Suffolk Enterprises a non profit affordable housing organization saying their concern was for low income households to have clean water;
the president of the State Hispanic Chamber, which represents 950,000 business owners and supports the increase; the CEO Palace Verdes Peninsula Chamber of Commerce called in support of Cal Water speaking on behalf of upgrading infrastructure delivering clean water to the community.
Utility users who thought the rates were already too high, and protested the rates as being raised far too high called from various areas of the state. Several people called from San Carlos and Livermore. The Mayor of San Carlos, speaking as an individual, and not in official capacity, said the rates were unfairly causing residents with more household family members unfair burden with these increases.
Other areas, which callers vocally protested from, included: Commerce; Westlake Village; Global Real Estate Consultants a community association representing thousands in San Mateo County; Marysville which included the Public Works Director for the City of Marysville who gave an official statement from the City government of Marysville saying that the city was never consulted. And the City Council of Marysville was concerned about the lack of communication and opposes the increase; Portola Valley; Los Altos and Salinas, California.
One party, from Redondo Beach, requested other additional efforts related to making the water safe. Another party from Portola Valley just wanted to know how prepared the company was to deal with fire fighters fighting California fires.
During the second part of the hearing Tulare County Supervisor Amy Shuklian, who said she is a former City Council member of Visalia, and currently represents Visalia commented. She said, "We have had a good partner in Visalia with Cal Water." She also said the company helps low-income utility users, and works to preserve the environment and is planning for the needs of the growing community.
Additional statements may be submitted at https://www.cpuc.ca.gov/proceedings-and-rulemaking/cpuc-public-participation-hearings