Welcome to the California Public Utilities Commission
American Water General Rate Case. On this day, Tuesday
April 11, 2023. Judge Rambo, you may begin. All right.
Good afternoon. We, uh can the court reporters can please
confirm they are ready to begin?
I'm, I'm ready Judge. All right, thank you. We will now
be on the record. The Commission will come to order
It is now 2pm on April 11th, 2023. This is the
Remote Public Participation Hearing for the application
of California American Water Company. For authority
to increase rates and other requests. The docket number
for this proceeding is A22-07-001. Please note
that the audio and visual feed of this Public Hearing
is being recorded, and is accessible on the Public Utilities
Commission website. If you do not wish to be recorded,
please disconnect now. My name is Jacob L. Rambo, and
I am the assigned Administrative Law Judge in this
proceeding. Joining me is Commissioner Genevieve Shiroma,
the Commissioner assigned to this proceeding. At this
time, Commissioner Shiroma will offer her opening comments.
Uh thank you, Judge Rambo. Good afternoon, everyone. My name
is Genevieve Shiroma.
My pronouns are she/her. I am the lead commissioner
for this proceeding. I'm pleased to join Judge Rambo
today for the Public Participation Hearing. Uh, historic
drought conditions across the State are improving. Uh, and
the water supply is looking more promising. However,
uh California continues to be, uh to face intense weather
conditions. And water system resiliency is of great
importance and must be balanced with affordability.
So, Judge Jacob Rambo and I will be working together
to carefully consider California American Water
Company's request in this General Rate Case Proceeding.
Towards ensuring that customer's bills reflect quality
water service. Uh, as these General Rate Case Proceedings
may have uh, a large impact on ratepayers. We at the
California Public Utilities Commission take public participation
very seriously. And work to ensure that customers have
ample opportunity, understand the proceedings that
affect them and voice any concerns or questions. Today,
we have an opportunity for Cal-Am customers to learn
more about the General Rate Case applications, and express
their views. I look forward to hearing from all of
you and from our presenters today. I would like to
thank our court reporters today Lisa Welsh, Andrea
Ross. For covering the Hearing and have the tough job
of capturing everything that is said, for the record.
Uh, thank you and back to you, Judge Rambo. Thank
you.
Thank you, Commissioner Shiroma. The purpose of today's
Hearing is for the California Public Utilities Commission
or CPUC. To hear from the public about the
issues that are addressed in the California American
application. The CPUC is the state agency that has
regulatory authority over California American Water
Company. A water utility providing service in several
districts throughout the State. The CPUC is composed
of 5 Commissioners who are appointed by the Governor
and confirmed by the California State Senate. The Commissioners
will render a final decision on each of the issues
raised by the application. Fact sheets and other information
about the application and this proceeding are available
on the commission's website at www.cpuc
.ca.gov/pph
In addition to today's virtual Hearing, the Commission
will be conducting in-person Hearings. On April 13,
in-person hearings will be held at the Rancho Cordova
City Hall at 2pm and 6pm. On April 25, Hearings
will be held at 2 and 6pm at the Seaside City
Hall. And on May 2, Hearings will be held at 2 and
6pm at the Thousand Oaks City Hall.
As the Administrative Law Judge assigned to this proceeding.
My role is to evaluate the evidence and applicable
law in this proceeding and to write a proposed decision
based upon the record and evidence. The Commission
will vote to adopt my proposed decision or they may
vote to adopt the, adopt their own alternate decision.
If you want to participate today, and provide public
comments. You will need to call 800-857-1917. For English,
enter passcode 1767567# and press *1 on your
phone.
For Spanish, enter passcode 3799627# and press *1
on your phone.
This will alert the operator, who will begin to queue
the public speakers. When you're called upon, please
unmute, unmute your phone and provide your name. Please
spell your first and last name. If you're listening
to the Hearing online while on the phone, please ensure
you mute your streaming device, before speaking. There
is a brief delay between the broadcast. If you are
a public official, please notify the operator of your
title and position in addition to your name.
You can find the contact information on the slide, on
the main screen.
This line is only, these lines are only for providing
the Commission with comments in this proceeding.
Separate phone lines are available for customers to
ask questions about this proceeding for their Bill.
The telephone number is provided on the screen.
If you cannot call in today, you may also submit written
comments by visiting the link you see on the screen:
apps.cpuc.ca
.gov/c/A2207001 As
of this afternoon, we have received 60 written public
comments.
Each of the parties in this proceeding has been allocated
time to make a brief opening presentation. About the
application and their positions. At this time, I will
call upon the parties to begin their presentations.
We will begin with the applicant, California American.
Hi, Evan Jacobs from California American Water. My
pronounces are he/him and his. And uh, leading the discussion
on behalf of our utility today. I have previously thanked
the PUC Staff and Commissioners, and Judge. As well
as our, um interveners and other parties that are here
today. And wanted to point out that Patrick Pilz, our
customer service representative. Is available to customers
if they have specific questions about customer service,
conservation programs or some of our customer assistance
programs. And if you're looking at the website, you
can see his phone number below, 619-415-1170. We also
have a great website, it's available in English and
Spanish. Uh Google, California American Water and it
should come right up for you. We do have specific pages
on, um conservation customer assistance and other customer
service rates, water quality, a lot of other good information
there. So I've encouraged folks who are interested in learning
more about their water, wastewater service to visit
us there. California American Water serves 700,000
residents in California. In portions of 10 different
counties throughout the State. We also provide
wastewater service in some areas. Our requests that we're
discussing today varies in each area. So it's important
to understand the local rates also vary, and our request
differs in different areas. California American Water
files an application like the one we have today, once
every 3 years. To set our budgets and design rates.
The Commission then conducts a detailed review of our
information and ultimately approves, modifies or rejects
our requests. The current application is to set rates
for January 24-December 2026. And we're
requesting over $400 million in capital investment
and renewal funding. It was originally filed in July
of 2022. On January 27, 2023, we filed an update to
our application, incorporating 2 rate design proposals.
The Water Resources Sustainability Plan and the Monterey-
Style Water Revenue Adjustment Mechanism. A key element
of this updated General Rate Case request. Is the Water
Resources Sustainability Plan. Which is a comprehensive
set of proposals designed to promote water use efficiency
and sustainability, improve affordability and provide
real protections for our customers. By ensuring that
volumetric base rates collect only the revenues authorized
by the Commission. The customer use exceeds forecast
sales, additional revenue will be returned to customers
through a credit. Alternatively, if customer use is
lower than forecasted sales, the difference will be
collected through a surcharge. The Water Resource Sustainability
Plan establishes customer rates that approximate as
closely as possible. Actual customer use during the
3 year rate case cycle. And provide for regular
sales forecast updates to help mitigate variances from
that. California American Water has worked diligently
to provide a comprehensive set of proposals under the
Water Resources Sustainability Plan. That will work
in conjunction to provide the best outcome for our
customers. Want to take a moment and talk about water
supplies. As everyone knows, our State has received
unprecedented amounts of rain and snow this Winter.
The result is that much of the State is no longer in
a drought, and our water supplies in the areas around
the state are recharging and recovering. That said,
we know that climate change is increasing the length
and severity of droughts. Between the extremely wet
Winters we had like this one this year. It's important
for all of our customers to continue to use water efficiently,
and we offer a variety of free conservation programs.
Including home water use surveys, rebates for turf
removal and appliance rebates. Visit our website, we
have different programs in each area. And we'd love
to have you join us and participate. We also do a series
of great educational webinars every month for customers.
We also recognize that everyone needs access to water
service for health and safety. To support the affordability
of water service for residential customers, we have
several assistance programs. The Customer Assistance
Program, CAP, provides eligible customers a discount
of 20 to 30% for essential service. And I'm noticing
now that I have some slides, but I don't see them up.
I don't know if we could put them up and some of
the information is there and may be good for folks
to capture. Um, the customer assistance program is a
great one that discounted 20 to 30% every month on
the bill. In this application, we are proposing increasing
those discounts. There's a program that launched last
year called the Low-Income Household Water Assistance
Program known as LIHWAP for short. It's available to all of
our customers throughout the State, and available to
the utility customers of other utilities throughout
the State. It currently has funding for up to $15,000
per qualified customer. To help with past due arrearages
as well as to help make future payments. It's run on
a county level. I would encourage everyone again to
visit our website. And find out more information about
how the program is administered in the county you
live. And if you do have uh, arrearages or struggling with your
water bill. Take advantage of that program as well,
the CAP program. We also do uh, offer hardship programs
in some of our districts. And uh, offer other programs
and services that you can find on our website.
So in addition to finding rates, conservation customer
assistance on our website. Uh, I think we were able
to provide Patrick Pilzs phone number, which is 619-415-1170.
To any customer who wants to follow up with the company
on specific questions. With that, I thank you to everyone
who is in attendance. And we'll hand it back to Judge
Rambo, thank you.
Thank you. We'll now call upon a representative of the
Public Utilities Commission, Public Advocate's Office
to make a presentation.
Thank you, Your Honor. Good afternoon, my name
is Cortney Sorensen, a Senior Utilities Engineer with the
Public Advocates Office. I am leading and coordinating
the GRC review team. The Public Advocates Office
is an independent office within the California Public
Utilities Commission that represents the interests
of ratepayers. Our statutory mission is to obtain the
lowest possible rate for service, consistent with a
reliable and safe service level. The Public Advocate's
Office has a multidisciplinary staff with engineers
economics, finance and accounting expertise. At this
proceeding, thirteen experts including 4 engineers, 3
financial experts, 4 regulation experts and 2
attorneys are reviewing Cal-Am's current rate increase
application. Our testimony will present analysis and
recommendations on various issues including operations
expense, capital investment, sales rate design and
taxes. In addition to specific topics, the report will
also focus on the following areas. First, the rate
making process should be transparent to decision makers
and ratepayers. And encourage utilities to operate efficiently
and within a reasonable budget. Second, as a substitute
for competition, the Commission must ensure that Cal-Am
does not view this position as a natural monopoly.
And finally, the Commission should limit the use of
alternative rate making mechanisms that result in surcharges
on customer bills.
You will be able to view our testimony after Thursday,
April 13, on the Commission's website at www.
cpuc.ca.gov And
click on the Public Advocates Office link. If you
have any questions, you can contact me at csn@
cpcu.ca.gov Thank you.
Thank you. The City of Thousand Oaks is also a party to
this proceeding. I will call upon their representative
to, to make a presentation at this time.
Thank you, uh Judge Rambo and, and Commissioner Shiroma for the
opportunity to speak today. I'm Jay Spurgeon, a retired
Public Works Director for the City of Thousand Oaks, and
currently assisting the city as a Consultant on this
uh, Rate Case. Next slide, please.
There are 3 main water purveyors in Thousand Oaks. On
this map the service areas, the service area shown
for Cal-Am is in orange. For the city, it's shown
in blue. And for a CalWater Service Company, uh in tan.
Next please.
Cal-Am is the largest purveyor, followed by the city and
CalWater. The city believes there should be water
pricing equity. That is residents and businesses should
not have to pay significantly more for water, just because
they're in a different service area. Next.
The city believes that the actual costs for providing
water service are similar for all 3 purveyors. Including
water supply, infrastructure, operations and maintenance.
Therefore, costs should be equitable for all residents
and businesses throughout Thousand Oaks.
Next slide, please.
Cal-Am's GRC proposal would result in more than 20%
cumulative rate increases over the next 3 years,
and this seems excessive to us. Compared to recent and
expected future city rate increases of only 1% per
year.
Also note that purchase water increases are in addition
to those noted here.
Next.
Cal-Am's proposed rate design
results in significant inequities in customer water
bill increases, depending on their water usage. As you
can see from this table. The 1% proposed increase for
an average residential customer shown in the uh public
participation hearing notice for this meeting doesn't
tell the whole story. So we respectfully ask the
Commission to require Cal-Am to propose a more equitable
rate design. Next.
Cal-Am rates are already the highest of the 3 water
purveyors in the City of Thousand Oaks. In this rate case,
we asked the Commission to consider water equity for
Cal-Am customers in Thousand Oaks.
Uh, if there's still additional time for me. I could
I would like to um, put up one more slide?
That would be the last slide on imported water costs.
And keep going and one more. Thank you.
The largest cost in the city's water budget, about
70% of it is purchased imported water.
And we, we believe that this is similar for Cal-Am
and CalWater. And uh, Cal-Am and CalWater Service, yes.
Imported water is expected to increase 3 to 5% per
year in the future. As you can see in this chart from,
provided by the Calleguas Municipal Water District. Who is the
wholesale imported, importer for Thousand oaks. But this
equates to adding anywhere from 2 to 3.5% per year
on top of all other increases. Now for Cal-Am, we
understand that purchase water increases are passed
through outside of the General Rate Case process. But
the significant impact on water bills from these increased
costs should be acknowledged and shared with customers.
And again, I thank you for the opportunity to share
our concerns and some, some slides uh during this Hearing
today. Thank you. Thank you. I will now call upon the
Monterey Peninsula Water Management District to make
a presentation.
Uh thank you, Judge Rambo. Can you hear me all right?
Yes? Yes, go ahead. Thank you. My name is Fran Farina.
I'm with the law firm of De Lay & Laredo. De Lay &
Laredo is General Counsel to the Monterey Peninsula
Water Management District.
The district is a public agency that was formed in
1978, and serves over 100,000 people in the Monterey
Peninsula area. Our functions include augmenting the
water supply, promoting water conservation, fostering
environmental qualities of the Carmel River. Providing
integrated management of ground and surface water, and
promoting water reuse and reclamation.
Our water supply comes primarily from native groundwater
in the Seaside Basin, the Carmel River and water from
the Pure Water Monterey. A joint project between
MPWMD and Monterey One Water. Additional water comes
from aquifer storage and recovery, and the Sand City
desalination facility. California American Water acquired
the area water system in 1966. There is an existing
well field for extracting Carmel River water, and a
separate well field in Seaside. At one time, Cal-Am
took 14,000 acre feet per year from the Carmel River,
and over 5,000 acre feet from the Seaside Basin. Both
resources are now severely constrained. Issues of concern
to MPWMD in this case include the allocation of
costs to customers statewide. Monterey main's affordability
ratio is 40% to 300% worse than other Cal-Am districts
without any consideration for this disparity. We are
concerned with the various subsidies between customer
classes, with consolidation of transmission and distribution
assets. With the proposed increase to the fixed meter charge
with the potential to reduce the effectiveness of local
conservation efforts. We are concerned with the proposed
decrease in conservation program funding, specifically
for the Monterey area. And finally, we are concerned
with operational deficiencies in Cal-Am's overall system.
·MPWMD's General Manager will present in-person at
the April 25 Public Forums in Seaside, California.
We encourage the public to attend either the 2pm
or the 6pm session at Seaside City Hall. For additional
information on Monterey Peninsula Water Management
District. Please visit our website at www.mpwmd
.net. And we thank Administrative Law Judge Rambo
and Commissioner Shiroma today. Plus uh, Staff that has
assisted in providing us this opportunity to present.
Thank you.
Thank you. At this time, I'll call upon the California
Water Efficiency Partnership to make their opening
presentation.
If you could please, if the speaker could please unmute.
We, we aren't able to hear you.
I'm sorry.
That would help, wouldn't it? Uh, my name is Maryanne
Dickinson and I am representing the California Water
Efficiency Partnership, also known as CalWEP. And CalWEP
is a party to this proceeding. I'm the former Executive
Director and I'm now consultant to CalWEP. Uh, CalWEP is
a membership-based nonprofit organization committed
to maximizing urban water efficiency and conservation
throughout California. Partly in response to Executive
Orders by the Governor of California. But also mandatory
water conservation requirements as enacted by the California
Legislature. We are interested in this rate case, because
we are concerned that utility conservation expenditures
and reductions in demand get properly dealt with. In
order to effectively promote water supply or compliance
with state law. And these conservation investments are
always cheaper than obtaining new sources of supply,
and thus should be incentivized. We may have had a
great water year, and so far in 2023. But drought will continue
to be in our future. And the State Legislative Conservation
Requirements and utilities will be enforced despite
this year's rain. Now, customers are understandably
concerned about rising water rates, which is a phenomenon
all over the country. But there is a serious misconception
that I want to talk about. Uh, about the role that conservation
plays and how it affects rates. Because consumers often
complain that conservation makes rates rise. CalWEP together
with its sister organization, the National Alliance
for Water Efficiency. Have carefully studied this issue
over the past decade. And we have examined water utility
systems in California, Colorado and Arizona to determine
what the effect of conservation has been on their rates.
The studies undertaken especially a 2018 study of the
Los Angeles Department of Water and Power. All conclusively
prove that on a long term basis, water conservation
programs have the effect of reducing consumer rates
over time. Yes, short term rate adjustments are often
needed. But the cumulative effect, long term is to
keep rates lower than they would have been had conservation
not taken place. This occurs because additional water
supply capacity is not needed when demand is reduced
over time. Thus saving ratepayers money in the future.
In the case of Los Angeles, our study found that the
reduction in L.A.'s water use. Has helped meet the needs
of a service area population that grew from 3.5 million
in 1990 to 4 million in 2016. Demand was greatly reduced
by conservation programs. Consumer demand is now less
than it was in L.A. in 1970, but with half a
million more people. Their water supply costs of $11
billion were thereby avoided from 1990 to 2016. And
thus customer water bills were reduced by over 26%
over what they would have been in 2016, if the conservation
programs had not taken place. So for this reason, CalWEP
is concerned that the conservation program expenditures
and lower consumer demand, which obviously results
in lower revenues to cover costs. If they be compensated
in the rate base. Which thus encourages more conservation
to be achieved. Also lowering utility system costs
and ratepayer bills over the long term. Allowing this
decoupling revenue adjustment means that it can work
in the other direction as well. Adjusting the utility
revenue collection to the customer's benefit when collected
revenue would exceed the water supply costs. And if
conservation further reduces utility costs, that kind
of consumer payback would be welcome. And note that
the Los Angeles Department of Water and Power has adopted
a similar decoupling mechanism. So this is, this is
something that is certainly in effect, even in the public
agency side. Therefore, CalWEP urges the CPUC to adopt
the WRSP Revenue Adjustment Mechanism. As listed
and described in the Cal American Water Company General
Rate Case application. Um, we thank you for the opportunity
to let us comment.
Thank you.
The National Association of Water companies is a party
to this proceeding. But they have elected not to make
a presentation today. So now we are ready to hear from
the public. Commissioner Shiroma and I will pay close
attention to the opinions expressed during today's
Public Hearing. I want to remind you that a court reporter
will be transcribing everything that is said today.
The court reporters are also on the line. When speaking
please speak slowly and clearly, so that the reporter
and interpreters can capture everything you say. Before
speaking, please state and then also spell both your
first and last name, and let us know which city you
are from. The written transcript of today's hearing
will be posted publicly on the docket card of this
proceeding. As a reminder, if you want to provide comments
please call 800-857-1917. For English, enter the
passcode 1767567# and press *1. For Spanish, enter passcode
3799627# and press *1 on your phone. When you are
called upon to speak unmute your phone, and record your
name when prompted.
For Spanish commenters, please put your comment into
blocks of time pausing regularly. To allow the interpreter
to hear, and then appropriately interpret your comments.
A chime will be sounded when you have spoken for 3
minutes. Please at that time, wrap up your comments.
We want to accommodate everyone desiring to speak today.
The, I will now call upon the operator to uh, call upon
our first commenter.
Thank you. The public comment telephone line is now
open. For those on the phone, if you wish to speak during
the public comment period. Please unmute your phone,
press *1, record your first and last name slowly
and clearly when prompted. Our first caller is Marli
Melton. You may go ahead.
Hello. Can you hear me?
Hello? Yes, you may speak.
Thank you. This is Marli Melton, M. A. R. L. I. M. E.
L. T. O. N, and I'm Monterey System ratepayer in Carmel
Valley. Please do not grant the rate increases that
Cal-Am has requested. They far exceed the rate of inflation
and reasonable cost forecasts. CPUC regulations link profits
to capital investment. So Cal-Am lobbies public officials
and agencies vigorously. For wasteful, unneeded capital
projects. Often public officials never even learn accurate
details about better, lower cost options. Cal-Am even
wants us to pay for water we do not need or use.
Please do not allow Cal-Am's version of decoupling or
whatever name they are using for this practice. We
already pay the most expensive water rates in the State.
So we have to conserve and we are. Please do not require
us to continue to subsidize Cal-Am's wasteful spending.
Thank you.
We'll take our next commenter. My next caller is Walt
Motley,
you may go ahead. Uh, uh can you hear me
now?
Yes, you may go ahead. Yes, go ahead. Okay. Uh, yes. Um
good afternoon Commissioners. Uh, my name is Wallace
W. A. L. L. A. C. E. Last name Motley, M. O. T.
L. E. Y. I live on the Monterey Peninsula and this is
um, uh. What I'm referring to is the Cal-Am is asking
for 18.7% for 2024, 5.5% for 2025, 5.3% for 2026. But
why is Cal-Am even allowed additional rate increases outside
the general rate increases? Is this Commission sufficiently
aware of the cumulative totals to generally case uh,
uh increases. Why did Cal-Am get an 11% increase starting
last January? What justifies this last increase? Their
increases have substantially surpassed the rate of
inflation. Cal-Am has not produced one drop of new water. They
had to be stopping illegally overdrafting, and almost
destroying the Carmel River. And they were trying to
build an environmentally destructive, costly and unneeded
desalination plant. Up until recently, they were holding
the Monterey Peninsula residents hostage. By refusing
to sign the water purchase agreement for the award
winning, Pure Water Monterey Recycled Water Expansion
project. In short, Cal-Am has been a continually abusive
neighbor. If it is too late to refuse this last 11%
increase. It is only fair that you refuse any future
increases until they are really justified. Thank you.
Thank you. We call upon the next commenter.
Our next caller is Carol Setinek, you may go ahead.
I am Carol Setinek from Seaside, you can hear me?
Yup. Yes, go ahead. All right. You spell that C. A. R.
O. L. S as in Sam, E. T. I. N. E. K.
Cal-Am is requesting to raise its rates 18.7% this year,
5.5% in 2025, and 5.30% in uh, '26. They refused to sign the
water purchase agreement until they were granted $10
million. These increases are far above inflation and
far above the cost of doing business. This corporation
has been a calamity for Monterey Peninsula residents.
That only replacing Cal-Am through eminent domain will
solve. Please do not agree to their rate increase.
Thank you.
Thank you. You can call upon the next commenter. Our
next caller is Dustin Kirk, you may go ahead.
Hello. My name is Dustin Cook, Carmel Valley resident.
That's D. U.S. T. I. N. C. O. O. K. Um, I look back
3 years at my Cal-Am bill. And I, um at that point. And for
500 gallons usage more 3 years ago. I, I now pay
$20 a month more. In other words, I'm paying $20 a
month more on this, this year than I did 3 years
ago and I'm getting 500 gallons less. That's a 60%
increase if you figure it on a per gallon basis. And
I know there's many other basis. Everybody figures
these things. Um, just to speak to the point that you
guys are there to review this and see what's justified.
I think from the tales that you're hearing now and
the Thousand Oaks presentation. You can
see that Cal-Am, Cal-Am's extraction is mostly for money, not water.
And they're not above um,
almost blackmail, if you will. So please do, um do review
this, review because the next 3 rates coming up
are pretty excessive. And we've just suffered an 11%
increase in January, but I'm not sure what reason.
Thank you for your time.
Thank you. You may call up on the next commenter.
The next caller is anonymous with Temple City. You
may go ahead. Oh, can you hear me?
Hello? Yes, we can hear you. If you can state and spell your first
and last name. Thank you. Uh okay. I'm from Temple City.
Uh, A. L. Last name, C, period.
Uh we, we got a lot of free rain this year. And, uh
they're still trying. We got tons of free rain this
year and they're still trying to charge us for that.
Uh, the tables that, uh that they sent me in your paragraph.
You put um, uh table one, you put 9.9%. And then you
put um, uh 6.24 and then 5.02. But on your table, your
proposed table you, you put 5.05 instead
of 9.29, I don't get that. And then the same thing with
the, the second paragraph on the second table. You
put 8.87%, yet you represented 4.58 for the 2024 year.
But the other two years match. So you're talking uh, a
percent increase uh, if you add that in 16.31 to 20.55%,
in 3 years. Uh, then from 15.8 to 20.9% on your 2nd table,
in 3 years. And here the U.S. government is trying
to get inflation down to 2%. Uh, East Pasadena Water Company,
our old water company was very conservative. They were
billing us every 2 months. Uh, instead of Cal-Am coming around
every month to go hire someone to read the meter. Every
month and hire people to bill us every month. Is that
cost saving? I hear the lady talk about water conservation
saves money on our bill. If that's true, why are we
getting increases every year from Cal-Am? Uh, we're also paying
for the shareholders uh, as well as funding all these
increases for the low-income people. It's coming out
of the rate is not coming from Cal-Am's profits. That's
gonna go to their shareholders. They want uh, for my
area, they want $27 million to $28 million in 3
years. For what, for what? Uh do they, do they document things
that they're going to do? I want to see them document
it and notarize the past year's projects in my area.
Because they're hitting us for our area of this increase,
and see how much this $27 million they're spending.
I've watched them repair a leak out in the sidewalk
there. Four men, four men to do the job. Took them
about very quick, 3 to 4 hours to repair. Uh, I thought
they were gonna dig up the sidewalk, the concrete sidewalk.
No, they got a backhoe. They dug a hole across the
street in the asphalt and then they ran a sleeve, a
sleeve into a broken
into the broken pipe. And it took them about 3-4 hours
to fix the leak. Uh, does that require $26, $27 to $28
million in my little area. That they're raising it to
to fix something? Uh where, where does all that come
from? I don't get the $28 million that being a corporation
doesn't help either. Because they need to pay their
all their presidents and all the shareholders, because
they're on the stock exchange. Uh unfortunately, East
Pasadena is a little mom and pop place, they had to
sell out. Um, I think my time's up. But I wish
everyone take consideration that their increases are
really ridiculous, high. And here the government is trying
to keep inflation down to 2% a year, I don't get it.
Uh thank you for hearing me out, everybody. Um, thank
you very much. Thank you. We'll call upon the next
commenter.
Our next caller is Melvin Stokes, you may go ahead.
Good afternoon. Uh, Commissioner and the rest of the
people on the line. I agree, I'm from Bellflower and
my last name is spelled S. T. O. K. E. S. Melvin,
M. E. L. V. I. N. And I agree with the last
caller about the rate increase of almost $27 million.
And then it comes down at the tables, the tables don't
reflect the same as the, the proposal. Now, I've
been in Bellflower since 2015. I bought my house in
2015. I, if I'm not mistaken we had another water
company come in. There was another water company present
and then Bellflower Water took over that company. And
each time, there was always a rate increase. And then
I remember the proposal for this was about 2 years
ago and I believe we had a Hearing, and that was also
they're requesting an increase. It seems like to me,
I'm not certain and I'm not making any accusations. But it seems
like to me it's like, it's some kind of hidden ball,
three-card Monte they playing. I buy the water company,
I raise the, the rates, make my money, sell it. And
then the next company comes in, they raise the water
rates, they sell it. And it's all this time it's,
it's no benefit to the consumer. Now I've asked for,
I got a uh, a puddle that settles in the front of
my lawn. And I've asked them to come out and check it.
They said it's the city, the city says it's the water.
I don't know who it is, I really don't care. I just
want it fixed and they have never come out. I have
a uh, a leaking hydrant. No one's ever come out to
fix it. And I'm like the other gentleman, they've done
some moderate work on the streets. Uh, they've leveled
some other streets in front of the houses. And they
told me mine would be 3 years away, before they
were able to get to it. I'm only concerned about the
rate increase right now and I don't think it's fair.
And I hope that uh, the Public Utilities Commission
denies this increase. Uh, but it was really kind of
hard to tell whether the Public Utilities was for or
against it. They didn't really come out and say. But
uh,
thank you for your time.
Hello? We'll call upon the next. Thank you. We'll
call upon the next commenter. And before we go to
the next caller. Again, if you wish to speak during
the public comment period. Please unmute your phone,
press *1, and clearly state your first and last
name slowly and clearly when prompted. Our next caller
is Robin Durston, you may go ahead.
Hi. Um, Robin R. O. B. I. N. Durston, D. U. R.
S. T. O. N. I'm from Sacramento. Uh,
I do not believe a water company should be run as a
for-profit company. The stockholders and owners make
too high a return and that's all they care about. Their
main concern is their rate of profit. Water is a necessity
and people have a right to clean safe water at a reasonable
cost.
They say they need to invest in the infrastructure,
protect from known and emerging contaminants and expand
water supplies.
And the increased rates are for increased labor costs,
and balancing demand and inflation. Have they done
any of these things since the last rate increase?
Wasn't there a law passed in Sacramento County, that
all residents should have water meters? And why do we
still have flat rate customers in the Fruit Ridge area,
where I am? Uh, I believe they just use the water to
buy up more small water companies across the State.
Often these small water companies have problems that
need fixing and then they raise the rates again. How
many more water companies do they plan on buying this
year? The rates are already high. I paid approximately
$100 per month in the Summer months last year.
My neighbors who rent, they don't water the trees.
So many of the trees died and fell over in the Winter
months. The renters are not allowed to plant gardens,
because the cost of water is so high. The Fruit Ridge
area is a very poor district. Inflation is high and
we're not getting wage increases to keep up with inflation.
No one drinks the water, it doesn't taste good. They
either buy bottled water or use a filter.
And there's no water equity in the rates, I don't live
in the city. The Sac City water is significantly cheaper,
it only goes up like 1% a year. And um,
these water rates um,
are going up 8.55% in 2025, and 7.93% in 2026. I do not
believe they're justified in charging such a high rate
increase. I wonder if they're just raising the rates,
because we had all this rain. And they want to make
up for their losses for not us, not using as much water.
Um, please protect the public and deny such large rate
increases. Thank you.
All right, thank you. At this time, we are going to
take a brief 5 minute recess. While we are
on recess. If anyone, if, if there are any additional
commenters. I'd encourage you to please call in at
this time. We will return at 3:07pm. We are off the
record.
The Commission will be in order.
Operator, do we have any additional speakers in queue?
Yes. Uh Saoirse Folsom, you may go ahead.
Hi, thank you. Can you hear me? Yes, we can. You may
provide your comments. Great, thanks. Thank you very much. Um, I'm
calling in opposition to uh Cal-Am's uh, rate increase.
You know, gosh. it's so disheartening. Um, every year
it seems like Cal-Am is asking for a rate increase. And
every year not once since 2003, since I started. Uh,
paying bills here in Monterey Peninsula. Not once
have you guys denied or questioned or, or withheld
the rate increase. And unfortunately, we're now located
in one of the most expensive water districts in California.
And I want you to know that this affects families,
it affects children. Right now, we can only afford for
my daughter to shower once a week. That's real, that's
honest. Okay. My husband and I, because we work we shower
twice a week. Can you think about that for a second?
Can you think about what that means?
Can you think about what it means to wonder how much
it will cost if you maintain your laundry? When you
think about that for a second? Can you think about
what it's like, to think about whether or not you should
run, you can afford to run your dishwasher or if it
would be better off for you to, to uh, to use recycled
water that you caught off of your roof? When you think
about that for a second what that's like? If you can
think about what that's like, dear welly-paid CPUC.
Commissioners. Then you can think about what that's
like to live under the tyranny of Cal-Am water on the
Monterey Peninsula. We are in a stranglehold. Please, please
help our families. Please tell them no. Too many rate
case, uh applications. They're, they're doing rate increases
every 3 years in the General Rate Case. And then
they're asking for authorizations outside of the General
Rate Case. Are you guys keeping track about what that
means for working families?
Uh, before the last caller hangs up. Could you please
spell your first and last name for the record. So the
court reporter has it. Sure. First name is S. A. O. I. R. S.
E. Last name is F. O. L. S. O. M. Saoirse means freedom
in Gaelic. I need freedom from Cal-Am Water. Please
help us.
All right. Thank you. Thanks. Operator, do we have any other speakers?
And we have no callers in queue at this time. But again,
if you would like to make a comment. Please press star
1.
All right, we'll give it a minute or two here. To give
anyone who wishes to make one more comment, the chance
to speak.
All right, Operator. If we have another speaker, you
may, uh call upon them.
We do have one more caller Cate Mulligan,
you may go ahead. Hi, Cate Mulligan here from Seaside.
I agree with all of the people that are complaining
about the price hike. I think it's invalid and the
$10 million giveaway is just to get rid of them. Let's
just get rid of them. Let's not have them continue
to ask for more money. If they want to save some money
they should stop wasting money on advertising. Especially
insulting advertising, that calls us their heroes. We
are their wallets, not their heroes. I don't trust
them and I think you shouldn't either. Thank you. Caller
before you hang up. Could you please, uh spell your
first and last name for the record and the court reporter can record it. C.
A. T. E. M. U. Double L. I. G. A. N. Thank
you. Thank you.
All right Operator. Do we have any other commenters on
the line?
And we have no additional callers online at this time.
All right. Ladies and gentlemen, this will be the last
opportunity to uh, call in. If you wish to provide comment.
I remind you, we will be having another virtual public
participation hearing this evening, beginning at 6
pm.
So at this point, it is now almost 3:15 pm. And
since we have, uh we have no more speakers on the line.
I want to thank everyone who participated today. Before
we end the Hearing. I'll ask if Commissioner Shiroma
would like to make any additional comments.
Yes. Thank you, Judge Rambo. Uh, I want to thank all
of the presenters today and all of the folks who um,
um logged in to the adminmonitor webex. And uh, those
who called in and provided public comments. Very much
appreciated the time everyone took, uh during their
afternoon. Uh and appreciate all the comments made.
Thank you, back to you Judge Rambo.
Thank you, Commissioner Shiroma. Before we conclude,
I want to remind you that you are able to submit written
comments by visiting the link of, shown on the screen.
You can click on the public comments tab at app
s.cpuc.ca.gov
/c/A2207001 Additionally
as I indicated earlier, there will be another virtual
Public Participation Hearing this evening at 6pm.
And we will have in-person Public Participation Hearing
this Thursday at 2 and 6pm in Rancho Cordova at
the Rancho Cordova City Hall. There will be another
Public Participation Hearing at the Seaside City Hall
at 2, and again at 6pm on April 25. And then,
our final scheduled Public Participation Hearings are
scheduled for 2 and 6pm. On May 2nd at the Thousand
Oaks City Hall.
If you have, uh require assistance providing additional
comments or you wish to uh, have difficulty with the
website. You may contact the Commission's Public Advisors
Office at public.advisor@cpuc.
ca.gov This concludes this afternoon's Public
Participation Hearing. I thank you all for your participation
and for bearing with us through the technical difficulties
earlier. Uh, we are now off the record.