LUCERNE — The consequences of a judge”s decision on a massive rate increase for Lucerne water users are still shaking out as a community water groups explores what the ruling really means.
Administrative Law Judge James McVicar recommended a 121-percent increase for average water users in Lucerne in response to the request for a 246-percent increase from California Water Service Co., which owns the Lucerne water system.
However, because of a Rate Support Fund (RSF) credit which was settled upon in June, residents who do not qualify for the low income rate will only see a 65-percent increase.
However, any increase may still be a challenge for many residents to fit into their budgets.
The RSF was settled upon in March by all parties in the rate case, which addresses the issue of who would pay for the upgrades to the water plant and how to give a subsidy to low-income residents.
“The new RSF settlement would … lower rates in (Lucerne) by spreading some of their costs across all 24 (Cal Water) districts. It would also provide support for a new low-income ratepayer assistance program,” the proposal said in June.
The graph on page one shows the rates that McVicar ruled upon. The “Usage Ccf” is the amount of water used. One ccf (cubic foot) of water equals 748 gallons of water. The average water use in Lucerne is 5,236 gallons per month, or seven ccfs.
If a user qualifies for reduced fees for telephone or power, they also will qualify for reduced water rates. That will lower the average user”s rates to $40 per month, a $10 decrease.
To qualify, a household of one or two persons with a combined gross annual income cannot exceed $28,600. For four persons, the maximum is $40,500.
If a household has six members, $54,300 is the maximum amount to qualify. Each additional household member raises the six-member maximum by $6,900 per year.
The chart shows the amount of increase Lucerne would have paid if not for RSF.
The LCWO board met with its attorney, Steve Elias, on Wednesday to set a date, time and place to hold a community meeting to inform residents on what they can do to persuade the CPUC to lower rates even further.
Contact Terre Logsdon at tlogsdon@record-bee.com.
