Many questions, too few answers
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Cathy Perfect
Kern Valley Sun
Representatives from the California Public Utilities Commission came to Kernville Thursday to hear public comment on California Water Service Company’s proposed rate increases. They got an earful.
Cal Water customers were notified last year of the company’s application requesting rate increases in each of its service areas (24 districts, 460,000 customers statewide) totaling more than $70 million, or 16.75 percent, effective next January. Cal Water, the largest water company in the state, is also asking for a $24 million increase in 2012 and another $24 million 2013.
Accusations of “corporate piggishness” by Nancy Szepfalvi, of Squirrel Valley, resonated with the crowd of more than 100 upset and angry Valley residents packed into the Kernville Chamber of Commerce building.
Ed Bird, of Bodfish, called Cal Water’s request for a 16.75 percent increase, reportedly calculated using inflation factors provided by the CPUC, deceptive and disingenuous.
Noting that many Kern Valley residents are living on fixed incomes, Bird cautioned the commission, “to be mindful that the Social Security Administration has determined that current inflation is zero. There has been no increase in our (Social Security) benefits, yet you’re claiming these rate increases are based on inflation.” He asked again, “So what are the factors – other than inflation – that you’re using to justify these increases?”
There are a number of items factored in the application, said John Foth, a Cal Water Engineering Manager. “There are utility plant improvements, pipes, and wells. (Meeting the new) arsenic standards is the biggest expense factor in the rate increase.”
Several people questioned the “barely honest” wording in Cal Water’s rate increase notice. Foth addressed the comments by noting that 16.75 percent is the “average” increase; 460,00 customers paying $70 million more for service. Cal Water’s application calls for a 36.5 percent increase for the Kern River Valley District.
The DAR (Division of Ratepayer Advocates), “an independent arm of the CPUC created by the Legislature to represent the interests of ratepayers” is recommending a smaller increase of 20.9 percent.
“This is a travesty,” said George Dew, of Kernville. “The state of the economy is horrible; the state is broke. The DAR and Cal Water – what a bunch of weasels.”
A copy of Cal Water’s application and further information may be obtained from your local Cal Water office, 7138 Lake Isabella Blvd., Lake Isabella, 760-379-5336. Or contact the company’s headquarters at 1720 North First St., San Jose, CA, 95112-4598, 408-367-8200.
