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Cal Water announces usage down by more than 44% – how much do you think that amounts to in WRAM charges?

9 Sep

I’m assuming everybody has got their latest rate increase notice from Cal Water. 

Did you get that Marc? Oh yeah, you don’t live in Chico…

Well, I got another notice this month – “July’s water-use numbers are in: Usage is down more than 44%!”

But you know what that means – WRAM!  Think they’d put their WRAM figure on the bill for all of us to see? Should I call Pete Bonacich and ask him how much Cal Water Chico charged in WRAM this past month while their customers killed lawns and trees to save 44% of usage? 

And my family’s allowance for next month is roughly half of what they allowed us this past month – I’ll have to check my last year’s bills to make sure they’re on the up-and-up there. I save my bills. Do you save your bills Marc?  That’s the only way we can really know what they’ve done to our rates, because even with my formidable intellect, I have a hard time keeping track of these rate increases without a paper trail. Like a lot of people have said at the rate hearings I’ve attended as well as in letters to the papers – these rates just go up and up without any real accountability.

Remember, the latest proposal includes “special requests” that were not disclosed in the notice we received, including a request to dump the 10% cap on WRAM. Like Connie over in Marysville has said, how can it be legal not to disclose the entire proposal to the ratepayers? 

There’s often a vast difference between what is legal and what is ethical, that’s for sure. The CPUC is stacked with ex-employees of utility companies, appointed by governors who received money from the utility companies. Here’s a recent article that details the e-mail trail that shows how chummy our regulators are with the utility managers they’re supposed to be supervising – get ready to get mad, it’s reminiscent of the Enron scandal:

http://ww2.kqed.org/news/2015/06/19/10-emails-detail-pges-cozy-relationship-with-its-regulators#Jellystone

Read this next article from last fall detailing The Moonbeam’s cozy relationship with PG&E – in 2010 he hired his Cabinet Secretary, Dana Williamson, directly from PG&E. Furthermore, “PG&E Corp. gave more than $50,000 to Brown’s campaign for governor in 2010 and contributed $25,000 to his initiative to raise taxes in 2012.”

Read more here: http://www.sacbee.com/news/politics-government/capitol-alert/article2622212.html#storylink=cpy

He gave some of PG&E’s contributions back when the scandal broke, as if that would wash his hands. I’ve heard rumblings of a recall of Brown, we’ll have to see how far it gets. We’ll also have to see, over many years to come, if the new regulations winding their way through the legislature will turn the CPUC around. 

In the meantime, write those protest letters to the addresses in your Cal Water notice. You might also write letters to Third District supervisor Maureen Kirk, or your own supervisor, and ask how you can help the county achieve Intervenor status and formally protest this Cal Water rate increase. You might also drop a line to Chico Mayor Mark Sorensen, ask him what the city is doing to protest this rate increase. I’ve written another letter to the Enterprise Record, we’ll see if they print it.

Chico Cal Water customers received a notice in their latest bills regarding an application made July 9, proposing not only a rate increase but consolidation with Oroville, Willows, and Marysville districts. 

While many people are already frustrated with repeated rate increases,  consolidation with these other districts should also raise concerns. Marysville, for example, has been told they need extensive infrastructure improvements over miles of long-neglected water lines. Cal Water’s last rate increase proposal for Marysville was rejected as onerous by the CPUC, so Cal Water is trying to spread those costs over a larger constituency. 

Not all of Cal Water’s proposal has been disclosed to the ratepayers.  Office of the Ratepayer Advocate has filed a formal protest, citing “Requests not included in the proposed application,” including a special request “eliminating 10% cap on WRAM amortization…” 

“Water Rate Adjustment Mechanism”  – when you don’t use enough water to cover Cal Water’s “fixed operating costs” ( salaries, benefits and pensions), they are allowed to tack the difference on to your bill anyway. If this charge on your bill already outrages you, wait until they dump the cap. 

Third District Supervisor Maureen Kirk has asked the county of Butte to become an “Intervenor” and lodge a formal protest of this latest action.  Chico Taxpayers Association has asked Mayor Mark Sorensen to do same. Please contact Supervisor Kirk at MKirk@ButteCounty.net and Mayor Sorensen at Mark.Sorensen@chicoca.gov and ask them how you can help with this protest. 

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Marysville’s take on ORA protest – “Why would anything be confidential – does the ratepayer not have a right to know everything that they are paying for?

4 Sep

From Marysville for Reasonable Water Rates Facebook

https://www.facebook.com/pages/Marysville-For-Reasonable-Water-Rates/176321489194208?fref=nf

READY FOR THIS MARYSVILLE?

The Office of Ratepayers Advocates has filed a PROTEST on many items in the newest California Water General Rate Case aka water rate increases.

Below are totals of this proposed increase for ALL of California.
TOTAL PROPOSED INCREASE-$140 MILLION!!!!

$94,838,100 or 16.5% – 2017
$22,959,600 or 3.4% – 2018
$22,588,200 or 3.3% on January 1, 2019

HERE ARE A FEW OF THE LARGE TICKET ITEMS THAT WILL BE SPREAD AROUND TO EACH CAL WATER DISTRICT-INCLUDING MARYSVILLE:

ALMOST $65 MILLION WILL GO TO THE GENERAL OFFICE. IF YOU DO YOUR MATH THAT IS 1/2 of the TOTAL AMOUNT OF RATE INCREASES THAT THEY ARE REQUESTING. THIS MONEY THAT COULD BE USED TO UPGRADE OUR OLD INFRASTRUCTURE.

General Office additions of:
$39 million
$24 million is designated for computers/software;
$2.2 million General office;Water quality lab improvement project

CAL WATER HAS MADE A-Special Request: Eliminating 10% Cap on WRAM Amortization.

ONE OF THE MOST DISTURBING ITEMS IS PAGES AND PAGES MARKED CONFIDENTIAL!! WHY WOULD ANYTHING BE “CONFIDENTIAL” ? DOES THE RATEPAYERS NOT HAVE A RIGHT TO KNOW EVERYTHING THAT THEY ARE PAYING FOR?

Cal Water identified many items, and occasionally entire pages, as confidential that have not been marked confidential in other Class A Water Utility GRC’s, nor in previous Cal Water applications. Additionally, much of this material is publically available elsewhere, such as on the Urban Water Management Plan website. ORA is concerned that this overly broad approach to confidentiality will negatively impact ORAs review process and the public’s ability to evaluate and potentially participate in the
proceeding.

AND CAL WATER WONDERS WHY PEOPLE ARE UPSET?

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Thanks Maureen Kirk for taking action on the Cal Water rate hike – time to put some heat to Mayor Sorensen’s seat

2 Sep

Third District Supervisor Maureen Kirk has filed paperwork with the CPUC to become a “party” to the recent rate increase application made by Cal Water.  She’s been keeping me informed of the process. Here is a notice about the first hearing on the matter. Of course it will take place in San Francisco.

 

9/21/15
9:00 a.m.
ALJ McKinney
Comr Sandoval

A.15-07-015 (PHC) – In the Matter of the Application of CALIFORNIA WATER SERVICE COMPANY (U60W), a California corporation, for an order (1) authorizing it to increase rates for water service by $94,838,100 or 16.5% in test year 2017, (2) authorizing it to increase rates by $22,959,600 or 3.4% on January 1, 2018, and $22,588,200 or 3.3% on January 1, 2019, in accordance with the Rate Case Plan, and (3) adopting other related rulings and relief necessary to implement the Commission’s ratemaking policies,
Commission Courtroom, San Francisco

The pre-hearing conference is the first open forum in the general proceeding. Its purpose is to determine the potentially affected parties, specific issues, and to develop a preliminary filing and hearing schedule. After the conference, the Administrative Law Judge issues a scoping memo that lists the issues raised during the pre-hearing conference and a schedule for addressing these issues in the general proceeding.

Section (a) of Rule 1.4 of the CPUC’s Rules of Practice and Procedure provides the ways in which an interested person/organization can become a party to a proceeding. 

(a) A person may become a party to a proceeding by:

(1) filing an application (other than an application for rehearing pursuant to Rule 16.1), petition, or complaint; (the term “application is not referring to a form, it is a formal document that the party creates and submits to the CPUC)

(2) filing (i) a protest or response to an application (other than an application for rehearing pursuant to Rule 16.1) or petition, or (ii) comments in response to a rulemaking;

(3) making an oral motion to become a party at a prehearing conference or hearing; or

(4) filing a motion to become a party.

As such, this 9/21 Prehearing Conference is one forum at which Butte County (or any other affected entity) can request to participate as a Party.

I think this is a job for the Mayor, or the Vice Mayor, the City Manager, Assistant City Manager, or some other paid representative of the city. I will send this notice to Mayor Sorensen and City Manager Orme. For one thing, I was just reading over the rules for their travel expenses, and they can afford a lot better hotel than me. For another thing, as elected officials and staffers, they will get a lot better reception from the CPUC people than I would.

I was very disappointed with Sorensen’s limp-wristed motion at last night’s council meeting – a presentation from Cal Water? You mean, an opportunity for Cal Water to pitch the rate hike? 

I informed Mayor Sorensen about the application for this rate hike back in early July, days after it was filed. I sent him the case information and contact information.

Since I informed Supervisor Kirk she’s filed the paperwork to become a “party” and she’s needling the county to apply for “Intervenor” status and formally oppose this rate hike.  

The city of Marysville had a presentation from Cal Water August 18. Directly after that presentation they voted unanimously to apply for “Intervenor” status and formally oppose the rate hike.

Meanwhile Sorensen is only now asking to agendize a presentation?  

It’s time to write those e-mails, tell him we want Intervenor status, we want a formal protest.

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It’s time to press our elected officials about this water rate increase – Chico Mayor Mark Sorensen requests Cal Water rate hike be agendized for public discussion

27 Aug

I am on the notice list for the city council and so I receive the agenda about a week ahead of each meeting. Next week’s agenda had a huuuge surprise – Mayor Mark Sorensen has a request up to agendize a discussion about the Cal Water Rate hike.

“Friday, August 21, 2015 8:02 AM – I do hereby request to add to a future agenda a presentation and discussion of California Water Service Company’s rate cases filed with the California Public Utilities Commission, and the subject of district consolidation. Thanks! Mark Sorensen “

Pardon my surprise, but I’ve been including Sorensen in my inquiries about this rate increase filing ever since July 8, when I sent him the article from Market Watch announcing the application. But he never responded, so I didn’t have any idea what he was thinking.

I wish people would contact Sorensen now, immediately, and tell him we want the city to become an “Intervenor,” which means a formal protest of this rate hike. The county has become “a party,” which means they get notices of what is happening with this case, but in order to make a protest, they have to file for “Intervenor status.”

It’s easy enough to become a party, just file the paperwork. The paperwork for Intervenor is a little more complicated. A CPUC employee admitted to me that we’d be better off having our county or city counsel fill out this paper work. The requirements are vague, there’s a disclaimer that states if you don’t cross your t’s and dot your i’s correctly your application could get round-filed.

Write to the full council – send it through Clerk Debbie Presson, that’s makes it formal. That’s debbie.presson@chicoca.gov

Tell them we want a full protest of this rate hike, the consolidation, and the other items listed by the Office of Ratepayers Advocates, which were not listed on the notice sent out to Cal Water customers.  One thing they’re asking for is elimination of the 10% cap on WRAM. I sent that notice to Sorensen, as well as the notice from the city of Visalia, which has gained Intervenor status on behalf of their district.

It’s time to PUSH!

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Visalia files formal protest of Cal Water’s recent rate increase proposal

26 Aug

Good news from Third District Supervisor Maureen Kirk – the city of Visalia has filed a formal protest of their rate increase case. Of course it’s a separate filing but at last the attack seems to be on.

PROTEST OF THE CITY OF VISALIA TO CALIFORNIA WATER SERVICE COMPANY’S APPLICATION TO INCREASE RATES FOR WATER SERVICE IN ALL ITS DISTRICTS

I. INTRODUCTION Pursuant to Rule 2.6 of the Commission’s Rules of Practice and Procedure, the City of Visalia (“Visalia”) files this protest to the application of California Water Service Company (“CalWater”) for an order 1) authorizing it to increase rates for water service by $94,838,100 or 16.5% in test year 2017, 2) authorizing it to increase rates on January 1, 2018 by $22,959,600 or 3.4%, and on January 1, 2019 by $22,588,200 or 3.3% in accordance with the Rate Case Plan, and 3) adopting other related rulings and relief necessary to implement the Commission’s ratemaking policies. CalWater’s application first appeared in the Commission’s Daily Calendar on July 14, 2015, therefore this protest is timely filed.

II. ISSUES IN DISPUTE As a general matter, Visalia intends to address the reasonableness of the revenue requirements requested by CalWater in its districts in general, but in the Visalia District specifically, and the associated ratemaking mechanisms on behalf of all ratepayers. Visalia does not know at this time which specific issues it will focus its analysis. It is likely that Visalia will address issues similar to those addressed in the last water company general rate case, personnel, general office, capital, special requests, and, if applicable, rate design. Visalia may also address additional issues as its analysis proceeds.

III. PROCEDURAL MATTERS A. Proceeding Categorization and Need for Hearings Visalia agrees with CalWater’s categorization of this proceeding as “ratesetting” and need for hearings. B. Proposed Procedural Schedule Visalia does not have a schedule to propose at this time but does request that hearings be held at several locations in which Cal Water operates, and that Visalia be a location for a hearing.

Wow, that seems simple enough, but  try writing stuff like this in layman’s language and see how fast they lay their hand across your forehead – NEXT! I’m hoping our county counsel will do something like this, and this morning I sent a note to Chico Mayor Mark Sorensen and City Mangler Mark Orme, asking for some action on their part.

To: mark.sorensen@chicoca.gov, mark.orme@chicoca.gov
 
Hi Fellows, 
I’m forwarding this I got from Maureen Kirk – the city of Visalia has filed a formal protest of their water rate increase. It’s time for the city of Chico to look into this. 
You can check with Maureen, the county is thinking about filing also. 
I would file myself, but looking at these forms and having discussed the subject with a CPUC employee, I realize I’d need legal help that is already available to you. 
I don’t know how much you know about this rate increase. Cal Water is also asking for consolidation with the Oroville and Marysville and Willows districts, which have outrageous infrastructure costs due to many years of neglect of their systems. According to a separate protest filed by the Office or Ratepayer Advocates, Cal Water has made requests that are not included in the public notice, including but not limited to an elimination of the 10 % cap on WRAM. 
I can forward you the information from the ORA if you are interested. You can get more information from Maureen. 

Thanks for your anticipated attention to this matter, Juanita Sumner

Please send a simple note like the above to the Marks, ask them nicely to act on this rate increase. If we can get enough people to protest this thing, we have a very good chance of turning it back.

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Cal Water is not being honest with ratepayers regarding new rate increase – write to your county supervisor!

14 Aug

NOTE: If you received your Cal Water bill this week, it says there’s a insert enclosed explaining the new water rate increase application. There was no insert in my bill. This could be a problem for Cal Water, there is a legal noticing process with time limits. If you didn’t receive the insert, please send an e-mail to the Public Advisor’s office – that’s Claudia.Portillo@cpuc.ca.gov  Please tell her the bill said you were supposed to receive the notice, but it’s not included. Please cc Third District Supervisor Maureen Kirk at MKirk@buttecounty.net

There is good news on the water rate increase – Third District Supervisor Maureen Kirk has contacted the California Public Utilities Commission and is investigating the process by which a person “becomes a party” to a rate increase case. A “party” will received e-mail notices from the CPUC whenever any motion is filed or anything else happens on that rate case. That’s really nice, compared to what I tried to do – call them up and ask them for the information. They acted as though I’d called the White House to order a pizza.

One of these days I will post the list of “actions” ratepayers can take regarding a rate increase and the series of chutes and ladders by which we are required to file the action.  Watch out for the slide! I really appreciate Supervisor Kirk going to the trouble to do this. 

The bad news is, the process is not much easier for a county supervisor than it is for a regular citizen. The paperwork they’ve been sending Supervisor Kirk is nothing short of onerous. When I asked the CPUC rep if we needed a lawyer to fill this stuff out, he denied that, but suggested we get our county council to do it.  

I suspect like this man who was sent to “help” us is just another flakcatcher, but I’m going to study all the stuff he sent us. By the same process we can file a formal protest, but  that’s another pile of onerous paperwork. 

What I know about this rate increase case is that they are proposing to merge our district with Oroville and Marysville, where the rates are already so onerous, Cal Water has had trouble raising them further. They want to spread them out across a larger district, make us pay for long-needed improvements to those city’s infrastructure. That might be nice for Oroville and Marysville ratepayers, but most of them are protesting this hike anyway.

But this morning Supervisor Maureen Kirk sent me some really good news – the Office of Ratepayer Advocates has already filed a protest on this latest rate increase. It includes “Requests not included in the Proposed Application”.  

II. ISSUES

ORA is still reviewing Cal Water’s Application, but has identified several issues that it intends to review and potentially address during this proceeding.

A. Requests not Included in the Proposed Application Should be Stricken

The application includes multiple requests that were not included in the proposed application. The Rate Case Plan states “[t]he application shall conform to the content of the PA (Proposed Application), as approved by ORA.”1 Pages 16-17 of the General

Report of California Water Service (dated July 2015) include the following new requests not included in the Proposed Application:

o Special Request: Eliminating 10% Cap on WRAM Amortization

o Special Request: Continued Authorization for Balanced Payment Plan

o Special Request: Permanent Credit Card Program

o Special Request: Temporary Metered Service Tariff

o Special Request: Public and Private Fire Protection Tariffs

o Special Request: Rule 15 Main Extensions Clarifications

o Eight Additional items were added to the Special Request regarding Memorandum and Balancing Accounts

As ORA was not given opportunity to perform a deficiency review on these requests, and these requests do not conform to the content of the Proposed Application as approved by ORA, they are outside of the scope of this application and should be stricken.

Furthermore, I just received my Cal Water bill yesterday. On my bill it says, “Please review the enclosed bill insert about Cal Water’s required General Rate Case filing…”  But hey, there’s no such insert in my bill. And, I’m assuming, if there had been, it wouldn’t  say anything about that list above. I’ll have to call them today and also drop a line to the CPUC advisor and anybody else I can cc. 

Please write a note to Third District Supervisor Maureen Kirk, thank her for her efforts on our behalf, and ask her what you can do to help. That’s MKirk@buttecounty.net

If Kirk is not your supervisor, you might also write to your own supervisor and ask them  to give Maureen any help they can.

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Latest proposal by Cal Water will merge Chico district with Marysville – where water rates are 300 – 400% higher than surrounding communities

5 Aug

I guess you all heard Chico surpassed the water reduction target imposed by Cal Water and The Moonbeam. 

Well nobody cares, get ready for another rate increase. 

Here’s something I know you’ve all seen – my family went a few ccf’s over budget – what a bunch of soooooouuuuiiiieeeeee pigs! But you know what’s funny? We still paid a WRAM charge of about $4. “Water Rate Adjustment Mechanism” – they didn’t make enough money to cover “operating expenses” (their pensions) so they just cut up the deficit and tacked a portion onto everybody’s bill. Isn’t that kind of crazy – they say I went over my allowance, but they still stick me for not using enough? 

Welcome to California!

We have to fight this new proposal, write those letters to your county board of supervisors in care of clerk Kathleen Sweeney:

KaSweeney@ButteCounty.net

Ask the supers to write a letter to the CPUC protesting this merger. Here’s why:

From Lou Binninger in the Territorial Dispatch:

Marysville residents are already in shock over the region’s highest water rates, 300-400% higher than the surrounding communities of Linda, Olivehurst and Yuba City. By moving 10-minutes away Marysville people could save enough on their water bills over a year to make a month’s payment on a house.

With water rates scheduled to go up another 26% by 2016 council members may face some gnarly voters if another tax measure shows up on the ballot.

Read more at 

https://www.facebook.com/pages/Marysville-For-Reasonable-Water-Rates/176321489194208?fref=nf

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How far will people be pushed in this drought?

29 Jun

ER letter writer Daniel Courtice of Chico complained recently that even though his household had used less than their budgeted water amount, they got no “credit” in their “water bank.” He reports, “We put buckets in our shower, tubs in our sink, flush our toilets much less, take navy showers and our lawn is half dead” but received no kudos in their subsequent bill.

“I contacted Cal Water to discuss this discrepancy and was told that during the first month no one was getting credits for the water bank.” 

He asks “We all need to do our part in this drought crisis but how is this right that Cal Water is not living up to the agreement that was promised at the community water meeting?”

I had seen in my notice, they wouldn’t be giving that credit up until the July bill. My husband called it – use all you can until the end of May, or they’ll cut you off that much more next year. He was right.

I wonder if Courtice knows about WRAM – the “water rate adjustment mechanism” by which water companies manipulate the price of water each month to cover costs. If we use too little water, they are allowed to charge more to cover their salaries, pensions and benefits – “fixed costs”.  They explained exactly how much they needed to fund their salaries and pensions – hundreds of thousands of dollars a year –  in the first notice  I received, I think, three years ago?

  I can’t fault Courtice, Cal Water sends so many of these GD notices, who in their right mind is able to keep up with all the twists and turns. 

I am on pins and needles waiting for my next water bill. It better be good, is all I’m saying. We already led a pretty water wise existence, but we’ve cut back further. For one thing, we filled our Intex pool every June, and now that’s gone. We’ll see if that even makes a blip on the radar. 

It’s always frustrating to see how far people will be pushed before they get mad about something that’s not right. Cal Water posted big profits this year.

http://finance.yahoo.com/news/california-water-group-posts-1q-210531853.html

According to Yahoo Finance in the April 29, 2015 article, “California Water Service Group Holding (CWT) on Wednesday reported first-quarter net income of $1.6 million, after reporting a loss in the same period a year earlier.”

Furthermore, “The San Jose, California-based company said it had profit of 3 cents per share.  The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 2 cents per share.”

How can they post a profit and still collect a WRAM charge every month? How can we let a for-profit corporation control our water?

 

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California’s “water crisis” an “opportunity” for publicly traded companies

24 May

My friend from Marysville sent me this article that made me so mad – I hate being right all the time. Yes, it’s true, according to investment site smallcappower.com – California’s “water crisis” has become “an opportunity for these publicly traded companies.“

http://www.smallcappower.com/posts/california-s-water-crisis-22-05-2015

“California Water Service Group(NYSE:CWT), meanwhile, has seen its revenue rise 2% between 2013 and 2014 to US$597.5 million, while reducing total operating costs from US$491.05 million to US$488.93 million.”

Of course there’s a hearing this Wednesday (city chambers) about the new fines that will be imposed for those of us who use “too much” water –  this scheme rewards PIGS by basing your “allowance” on your past usage. If I do attend, it will be to see if any of our elected city or county representatives show up. I was able to get our county supervisors to write a couple of protest letters about last year’s rate increase, and that might have affected the outcome (increase reduced from proposed 38 percent to 20 percent). I would like to see our local electees work a little harder to protect our interests, but instead I see them increasing our garbage rates to get money for salaries and benefits. Not a good sign.

I would like to ask the Cal Water representatives where the fines will go – a court just ruled that utility companies can’t profit by charging more than it actually takes to provide their service, so where should these fines go?  They can’t go into the company’s profits, or be paid to their shareholders – shouldn’t this money stay right here in Chico, to be used for rebates and  other incentives to save? 

In some cities, water customers are offered financial help to re-landscape their yards, buy rain water storage tanks, etc. The city of Santa Cruz recently offered very nice rain barrels at a $100 discount:

http://www.rainbarrelprogram.org/santa-cruz

Here in Chico, Cal Water will give you a “water conservation kit” which includes an adjustable hose nozzle, two low-flow shower heads, three faucet aerators, and some toilet leak indicator tablets. I priced the contents on Amazon.com and it looks like maybe a $50 value. You are allowed one kit per service address every three years.  

We picked up the kit for one of our rentals we were turning over – I was not impressed. The stuff was pretty rinky-dink chintzy – plastic parts, not long for this world. We already had all the items except the toilet leak indicator tablets, all better quality old stuff we’ve had for years, with real metal and rubber parts, made to last a long time. I predict these kits will not last the three years you are required to wait for a new one! 

I realize, you know too – Cal Water is not sincere about wanting us to save water – why would they be? They’re a FOR PROFIT operation, profiting off our most basic of needs. They want us to use plenty of water, and they will stick us whatever we do. 

When will you find your hind legs Chico? 

 

 

 

 

 

 

 

 

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