Water rates proposed to rise

Citing much-needed infrastructure improvements such as the replacement of 16 miles of water pipeline, water pumps upgrades, meter replacements and water system monitoring software upgrades, Cal Water is proposing a more than 10 percent increase in water rates over three years for customers in San Carlos, San Mateo and South San Francisco.

Up for review by the California Public Utilities Commission this summer, Cal Water’s proposed three-year infrastructure improvement plan for 2019 to 2021 would bring average residential customers’ monthly rate from the $68.53 they pay currently in the Bayshore District to $75.84 in 2022, with incremental increases to $71.49 in 2020 and to $73.69 in 2021. A public hearing held Tuesday by the California Public Utilities Commission at the San Carlos Library was aimed at gathering customers’ input on the proposed rates and was one many meetings held across the state in Cal Water districts.

Including customers in San Carlos, San Mateo, South San Francisco, Colma, Broadmoor, parts of Daly City and unincorporated Redwood City, Cal Water’s Bayshore District serves some 230,000 customers, said Ross Moilan, the Bayshore District’s manager.

Moilan explained Cal Water has been providing water services to the Bayshore District community since 1931 and has maintained miles of water pipeline, well tanks and booster pump stations, among other water infrastructure, in an effort to provide water for residential taps and fire stations, among other water service users.

To prevent health and safety risks threatening aging water infrastructure, Moilan explained Cal Water is facing a need in the Bay Area Region to replace more 86,000 feet of aging water pipeline, upgrade booster pump stations to improve system reliability and water pressure, replace water meters to ensure accurate reporting, upgrade computer software allowing the utility to monitor water tank levels and respond to emergency situations and enact security enhancements. Cal Water’s Bay Area Region also includes the Redwood Valley District, which serves Lucerne, Duncan Mills, Guerneville, Dillon Beach and a portion of Santa Rosa.

Moilan expected the infrastructure investments to cause the average Bayshore District customer to pay an additional 10 cents a day beginning in 2020, noting all parties, including state officials, the Public Advocates Office, Cal Water and its customers want safe, reliable and affordable water service.

“Our water infrastructure is a mean by which we deliver that,” he said. “It requires investment for maintenance and improvement in order to ensure there are safe, reliable water services.”

Public advocates

Focused on obtaining the lowest possible rate for reliable and safe service levels, the Public Advocates Office is an independent office within the California Public Utilities Commission and was created by the state Legislature to represent the interests of ratepayers, explained Brian Yu, a project coordinator for the office.

Yu said the Public Advocates Office reviewed Cal Water’s request for each of its districts and recommended average customers’ monthly rates in the Bay Area Region drop to $62.42 in 2020, increase to $63.72 in 2021 and in 2022 increase to $65.71, which he acknowledged is still lower than what customers currently pay. A report prepared by the Public Advocates Office in response to the infrastructure improvements Cal Water proposed for the Bayshore and Redwood Valley districts outlines specific aspects of projects the office believes are not necessary or for which the budget can be reduced.

In response to a main replacement project planned for the Bayshore District and estimated to cost more than $37 million by Cal Water, the office recommended the California Public Utilities Commission authorize more than $18 million for 2019 to 2021, arguing the utility should re-evaluate its pipeline replacement rates. The office also recommended project contingencies Cal Water projected at some 20 percent to 35 percent for some specific projects be reduced.

Reaction

For San Carlos resident Sarah Kelsey, how the merging of the Redwood Valley and Bayshore districts could affect the costs Cal Water is asking ratepayers to help cover was a concern. Greg Milleman, Cal Water’s vice president of California Rates, explained the utility was encouraged by state policymakers to consolidate districts where possible to leverage economies of scale in addressing infrastructure projects, and noted the Bayshore District is significantly larger than the Redwood Valley District and therefore would have significantly more costs. He said the breakdown of costs between the two districts was outlined in Cal Water’s filing for the rate increases.

As a retired contractor, San Mateo resident Arnold Rodman said he understood the need for the work Cal Water identified but asked officials to consider not applying the rate increases to water use beyond the Cal Water’s estimated average water use for a residential customer, which stands at nearly 6,000 gallons a month for Bay Area Region customers. Rodman estimated during some seven months of the year, his water use exceeds the average amount because he cares for plants and shrubs around his house, which he noted help reduce the carbon footprint.

With concerns the proposed rates may not take into consideration the public good of homeowners’ care for their landscaping, Rodman noted the costs of maintaining the landscaping on one’s property can quickly add up, especially for those who are retired.

“The bills just keep going up and up,” he said. “Unfortunately, the income doesn’t.”

Email public.advisor@cpuc.ca.gov or send mail to the Public Advisor’s Office of the California Public Utilities Commission at 505 Van Ness Ave. in San Francisco to submit written comments about the proposed water rate changes. Visit calwater.com/rates/iip-2018 to review Cal Water’s application and supporting testimony for its infrastructure improvement plan for 2019 to 2021. Visit publicadvocates.cpuc.ca.gov/general.aspx?id=2676 and select Report on Plant (Justin M) to view the Public Advocates Office’s recommendations in response to Cal Water’s proposed rate hikes for its Bay Area Region.

anna@smdailyjournal.com

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