Dear Senator Florez,

On Thursday, Feb. 18, a meeting was held in Kernville by the California Public Utility Commission (referred to as CPUC henceforth) regarding the request by California Water (referred to as CWS henceforth) to raise their water rates for 2011, 2012, & 2013 (A.09-00-001). The original bulletin that was sent to their customers stated that the rate increase would be a total of just over 26.58% over a three-year period. Rather steep in this very poor economy when locals aren’t getting ANY, and when you factor in that Kern County’s unemployment has soared to 13.8% and closer to 23% in the Kern River Valley, as well as the inflation rate is 0% (per the Social Security Administration announcement of, Oct. 15, 2009) for many of our communities citizens. Frankly, I don’t know anyone who’s getting a raise of any size.

Adding injury to insult The Division of Ratepayer Advocates (referred to as DRA henceforth) had at the Kernville meeting a letter stating that CWS was requesting a 36.5% increase for just the Kern River Valley! That’s more than DOUBLE of what they’re asking of other communities that they serve! The DRA is kind enough to recommend ONLY a 20.9 % increase because the CWS couldn’t account satisfactorily for 5 million dollars! What I found most bewildering at this meeting was that while there were many questions, there were NO answers available from either the CWS or the 2 Calif. Pub. Utility Commission (referred to as CPUC henceforth) members at the meeting. The gentleman from the CPUC just sat there like a lump on a log and the Administrative Law Judge (Judge Bruce DeBerry) actually started to fall asleep during the meeting! (See Picture from the Kern Valley Sun, dated Wednesday, Feb. 24). Proving that a picture is worth a thousand words as well as the CPUC appears to be just going through the motions. Your constituents Tax dollars should not be funding the CPUC to “just go through the motions.

At our expense!”

Mr. Florez, please note that the investors of this publicly held MONOPOLY are getting a 29 % return on their money. I will also note that those who have investments in PGE (just one example) are only getting a 5% return on their investment. The CWS had a 28 % profit in 2008. This valley is made up of primarily retired individuals on fixed incomes and low-income people, none of whom are seeing any increase in their modest incomes. I also refer you to the CWS public records re: the CEO, Mr. Peter C. Nelson. His combined compensation package is worth a whopping $3,307,304.00 included a category entitled “other” to the tune of $27,932.00 (2008 most current figures available). What is other?

It is not stock options (listed), not bonus (listed), not salary (listed), nor Restricted Stock Awards, and last but not least Option Awards.

Senator Florez, our next community meeting is on, Tuesday, March 9, 2010 at the Senior Citizens Hall in Lake Isabella at 6:00 P.M. I am personally asking as a voter and a your constituent to attend this meeting for the following reasons:

A)To see for yourself what your 4,300 constituents are up against this election year.

B)To support and help us fight this repetitive and excessive rate hike that CWS is requesting from the CPUC.

Attached you will find a copy of the Kern Valley Sun article and picture of Administrative Law Judge Bruce DeBerry starting to nod off during the meeting.

Looking forward to your response and seeing you at this meeting.

Nancy Szepfalvi

Lake Isabella