To the California Public Utilities Commission:

My name is Donn Matlack, I am a registered voter, taxpayer, homeowner and customer of California Water Service in Wofford Heights, Calif. I ask that my comments in this letter to the California Public Utility Commission, (CPUC) Commissioner and (ALJ) Administrative Law Judge be entered in to the formal report regarding California Water Service’s application (A.09-07-001) for a rate increase.

I vehemently oppose this increase, and the seemingly endless requests for rate increases and urge the Division of Ratepayer Advocates to deny California Water Service’s latest rate increase application. I am making this request on behalf of all 4,300 customers of California Water Service here in the Kern River Valley; most have no other choice for our families’ water needs. We are being held captive by this publicly held monopoly that brags about its size and uninterrupted 65 years of indecorous profit. Has not history taught us all that monopolies are rarely mindful of their customers’ necessities? California Water Service’s polished website speaks of, “Providing our customers with life’s key ingredient.” It puts on a false front in its, “urbanity video” of being a community-minded company that has been in existence for more than 83 years. However, upon closer examination, California Water Service’s real business leaps right off the pages of their most recent Annual Financial Report. This is not a populace-minded, customer-serving venture, on the contrary this is a double-digit profit-driven company that is more interested in crowing at every opportunity about its 260 (65 years) consecutive quarters of paying shareholders an ever increasing return.

“We believe that it is their dedication (Cal Water speaking of its work force) to being the industry leader that enables us to deliver excellent results to you, our valued stockholder.”

It appears the water business is not only a real cash cow it is also recession proof according to the 20- year report, “Return On Investment” (page 8) reflecting no down turns in our current agitated economy.  Please permit me to be the first to suggest that we send this shrewd and accomplished management team to Sacramento and Washington authorizing them to direct their astute business acumen towards lifting our nation out its current economic decline and putting us all on the gluttonous path of earnings that California Water Service’s executive officers and shareholders seem to have discovered and enjoys. According to California Water Service’s Annual Report for the year of 2008, available at, http://ir.calwatergroup.com/phoenix.zhtml?c=108851&p=irol-irhome.  Please note when you download this reports PDF file it is interestingly entitled “External,” Implying that there is a “Internal Report?”

California Water Service’s Net income for 2008 was up 28%. Earning per share rose 27%. Revenues increased 11.8%. Equally, for the year 2008, California Water Service’s stock price (CWT) ended the year up and paid a 29.4% return on investment.  In this eight year Financial Review there is also a category entitled, “Revenue per Customer” that reveals a 11.1% increase of $837.00 from the prior year of, $753.00 Again, the business of profiting on “life’s key ingredient.” by means of operating a Monopoly is flourishing.

During this corresponding time, (month-to-month, 2008-2010) I personally reduced my water consumption by 43% (From, 7-CCF to 3-CCF) owing to the fact that I am on a fixed income and can no longer afford the sensible volume of water I had used in the past, yet my costs have increased 30.2%. Virtually half the amount of water, at a third higher expense with ever increasing costs and no end in sight.

To the Commissioners and members of the (CPUC) California Public Utility Commission, The (DRA) Division of Ratepayer Advocates, and (ALJ) Administrative Law Judge please understand, “It is not what we speak, it is what we communicate that matters most.” The true motivation of this enterprise, California Water Service, that professes to be about clean water and caring for its customers, is in fact a Monopoly that feeds as a parasite does off the captive nature of its family households and business subscribers, while generating gratuitous compensation packages and double digit returns to their miscreant CEO, corporate management and heedless Shareholders. Please end this obscene and morally indefensible lust towards profit that boasts of depraved expansion and rapacious financial returns built on the backs of average families attempting to afford “life’s key ingredient.” I appeal to your sense of what is fair and equitable to deny California Waters Service’s filed application (09-07-001) requested rate increase.

Donn Matlack

Wofford Heights, California