CLEARLAKE ? The California Public Utilities Commission (CPUC) has granted Golden State Water Company (GSWC) authorization for an increase in its rates. The commission approved a 9.09-percent rate increase out of the 12.99-percent that was requested by the utility.
The rate increase was approved by the commission on Jan. 31 and went into effect on Feb. 5.
Along with approving a portion of the requested rate increase, the commission also approved a low-income rate program in seven GSWC districts including the district serving the City of Clearlake.
GSWC requested rate increases in seven districts within its Region I service area, which includes the Clearlake area. On Feb. 9, 2007, the Division of Ratepayer Advocates (DRA), which is a division of the CPUC that is mandated by state law to represent and advocate on behalf of public utility customers to obtain the lowest possible rates consistent with reliable and save service levels; protested the utility”s application as unreasonable or insufficiently justified.
Following the filing of the protest, Public Participation Hearings were held in all seven districts. Similar points were stressed in all the districts including: (1) the magnitude of the rate increase is unreasonable; (2) service quality is not reliable; (3) water quality, in a general sense, requires improvement.
A concern voiced by then-mayor Judy Thein on behalf of her constituents, claimed that GSWC rates are higher than the two other water companies providing service to Clearlake residents.
GSWC Operations Superintendent Keith Ahart for the Clearlake area reported that negotiations between the company and the DRA assisted in determining the percentage amount that was ultimately approved by the CPUC.
“Their group (DRA) and our group (GSWC) met and negotiated back and forth as to what was truly necessary and was not,” Ahart explained. “The difference between the 12.99 percent that was requested and the 9.09 percent that was approved was due to the way overhead is calculated and a reduction in contingency on capital projects.” Additionally, he said, a screen for raw water intake was deemed as an unnecessary expense and that a majority of the rate increase is based on infrastructure improvements.
The GSWC has 90 days to start mailing out information to its customers regarding the California Alternative Rates for Water (CARW) program. The program basically provides a flat dollar amount credit on the bill of those who qualify. “The flat monthly credit represents approximately 15 percent of a monthly customer”s bill with usage of 15 ccf,” Ahart said.
Alternative rates are based on household size and income. The program is governed by the CPUC and requirements for eligibility are standard across the state.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com.
