WEBVTT
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Welcome to the
Public Participation Hearing.
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Here we will take public input
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on the Golden State Water Company's
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General Rate Case Application
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on this day, Wednesday, May 25th, 2021.
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(speaks
in foreign language)
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The interpreter as well.
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Would the court reporter
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tell me whether or not
he is ready to begin?
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I'm
ready to go, your honor.
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Thank you.
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Okay. All right.
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We will now be on the record.
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The Commission will come to order.
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It is Tuesday, May 25th, 2021.
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And this is a remote
Public Participation Hearing
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on the Golden State Water Company's
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General Rate Case Application
for rates to be charged
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in years 2022, 2023 and 2024.
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The application number for
this proceeding is A.20-07-012.
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Today we will be focused on customers
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in what is referred to
as Golden State Water's
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region two rate area.
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Region two is comprised
of the following locations:
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Artesia, Bell, Bell Gardens,
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Carson, Cerritos, Cudahy, Culver city,
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Downey, El Segundo, Gardena,
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Hawaiian Gardens,
Hughson, Huntington Park,
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Inglewood, Lakewood, La Mirada,
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Lawndale, Long Beach, Newark,
Paramount, Santa Fe Springs,
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South Gate, as well as
communities in Athens, Lennox,
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Willowbrook, Moneta,
that's spelled M-O-N-E-T-A,
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Florence-Graham, which has a hyphen.
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It's a hyphenated name.
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Del Aire, capital D as in dog,
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Aire, a separate word, A-I-R-E.
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And Los Angeles County,
portions of the city of Los Alamitos
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and Orange County.
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Your monthly bills will indicate
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if you reside in region two,
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the area that we are focused on today.
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If your monthly bill
indicates that you are located
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in region one, which is
comprised of the areas known as
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Arden Cordova, Bay Point, Clearlake,
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Los Altos, Santa Maria, and Simi Valley,
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we will hold two Public
Participation Hearings
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for you tomorrow.
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One at 1:30 p.m and the
other beginning at 6:30 p.m.
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The call-in number is the
same as today, (800) 857-1917
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and the password is the same as today,
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if you want to speak and
leave a message for us,
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seven two one eight three eight four.
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You are welcome to stay
connected to this hearing
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but we will be concentrating today
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on the proposed rate increases
for customers in region two.
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If your monthly bill indicates
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that you're a part of region three,
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the PPH for your area
will be held on Thursday,
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May 27th at the same
times, 1:30 p.m and 6:30 p.m.
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And the call-in number and password
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in order to speak on the
record is exactly the same,
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(800) 857-1917
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with password seven two
one eight three eight four.
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With customers in region
one and region three,
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again, you can stay online
for as long as you like today
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but the focus today is region two.
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My name is Charles Ferguson
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and I'm the assigned
Administrative Law Judge
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for this proceeding.
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It's my job to collect
comments and suggestions
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from you today and be mindful of them
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as I assemble the evidence in
support of one view or another
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as to whether and how
much your rate should change
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for the three years of this rate cycle.
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I will write a proposed decision
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and submit it to the five CPUC
Commissioners to vote on.
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The goal today is for
the Commission and me
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to hear from you, the
customers, about how you feel
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and what you think about
Golden State's application
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for an increase in your rates.
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We at the Commission
have prepared fact sheets
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and Golden State Water
has delivered those fact sheets
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to you either electronically
or by regular mail
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to help you understand
exactly how much new revenue
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Golden State wishes to
receive in the aggregate
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from you and all the other customers
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in your assigned rate area.
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If you have not received
a CPUC fact sheet
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or you received it and misplaced it,
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you can find a copy
on the CPUC's website.
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Go to the CPUC website
at www.cpuc.ca.gov,
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G-O-V.
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Enter the words public
advisor in the search bar
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and on the right hand
side of the homepage
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for the public advisor,
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you will find a link for
public participation hearings.
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Click on that link and
scroll to the Golden State
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Water Company rate proceeding.
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And you will find the CPUCs fact sheet
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for each of the three regions
of the Golden State system.
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Again, your region today is region two.
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Even if you already
have your fact sheet,
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it's worthwhile remembering
how to access it online
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because you can spread
that news to your neighbors
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and they can access our website
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and download the same
fact sheet for themselves.
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You can also obtain a fact
sheet from Golden State
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by addressing an email request
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to the following email address,
2022GRC@gswater.com.
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Include in your email
your actual billing address
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so that they can send back to you
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the correct fact sheet
for your rate area.
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Finally, if you don't
have any internet access
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you can still get a copy of a fact sheet
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for your specific rate area
by calling Golden State Water
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at the following number (877) 288-8816.
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Let me repeat that again.
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(877) 288-8816.
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The fact sheet will help
you formulate your thoughts
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about the proposed rate increases
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in your specific rate area.
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You should begin your analysis
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by collecting your old water
bills for calendar year 2020.
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Those bills will tell you
how much water you used
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in each month during
the calendar year 2020.
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Using those precise amounts
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and the fact sheet the
CPUC has prepared for you,
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you can project how
much it will cost you
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to use exactly the same
amount of water each month
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in the three years of
this rate case cycle,
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2022, 2023 and 2024
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if we, the Commission, happen to approve
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of Golden State's request
in full for your rate area.
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That doesn't happen too often
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that we approve a water
company's request in full.
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But at least you can project
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what a worst case scenario might be
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if you continue to use exactly
the same amount of water
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as you used in 2020 and
the Commission does approve
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all of Golden State's rate
increases for your rate area.
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You should make a separate calculation
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for each individual month,
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January through December in each year.
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Begin each month with
a fixed service charge
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which you can find on the chart
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on page two of your fact sheet.
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The fixed service charge is
independent of your water usage.
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Whether you use no
water or a lot of water,
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the monthly service is a
once a month fixed charge
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that you must pay.
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Add to it your usage charge
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which represents the
amount of water you use
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for the same month in 2020.
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Usage charges are expressed
in hundreds of cubic feet.
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100 cubic feet of water or one CCF
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is equal to 748 gallons of water.
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Use the column that says
effective January 1st, 2022
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to project your usage
charge for January 2022.
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The proposed cost
structure for all of 2022
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is a portion of the
lower half of the chart
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on page two of the fact sheet.
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The cheapest water is for the
first nine CCFs that you use.
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The price increases after that
for the next 11 CCFs of water
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and get even higher for water
consumption beyond that point.
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You add your usage charge
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and the fixed service charge together
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to get a projection of
what you might have to pay
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in January '22.
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Again, only if we approve of
Golden State Water's request
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for increases in your rates
in region two completely.
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If you make these calculations
for each individual month
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you can compare what you
would have to pay for water in 2022
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if the CPUC grants all of
Golden State's requests.
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There is a way for
everybody to avoid paying
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for any new rate increases.
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And that is simply to trim your
water usage in those months
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when you typically use the most water.
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A graph on page three of the facts sheet
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shows you how your water
consumption compares
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to all the customers in
your specific rate area.
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On average taking into
account all 12 months of the year
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an average customer in rate area two
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uses nine CCFs of water per month.
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That's right at the top
of the lowest cost tier
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as proposed by Golden State.
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If you're using more
than the average customer
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then perhaps you should
consider reducing your water usage
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even though you can
afford a rate increase.
00:13:22.520 --> 00:13:24.370
Or if you're looking
for a way of avoiding
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the rate increase all together,
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you can make calculations
based on cutting your water usage
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by 10, 15 or 20% in year
2022 as compared to 2020
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and using the fact sheet,
calculate what you would pay
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under the increased
rates for using less water
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than you previously used.
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The Commission encourages
you to do some water reduction
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given the extreme drought
conditions we're facing
00:13:51.940 --> 00:13:53.103
throughout our state.
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Once you finish your projections
00:13:55.700 --> 00:13:57.070
you can let us know what you think
00:13:57.070 --> 00:13:59.173
about the proposed rate increase.
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Some of you may conclude
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that you can reduce your
water usage by enough
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to avoid any change
in the amount of money
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you pay for water.
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In that case you may feel
comfortable about rates increasing
00:14:11.860 --> 00:14:13.490
in order to pay for improvements
00:14:13.490 --> 00:14:15.940
in water quality or service.
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Others will be disturbed
by how difficult it is
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to cut their water usage
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and will be opposed
to any increases at all.
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We want to hear from both of you.
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Your fact sheet will
indicate that in our view
00:14:35.140 --> 00:14:39.900
what Golden State Water is asking for
00:14:39.900 --> 00:14:44.900
is a $23.47 million increase
in revenues in year 2022
00:14:49.230 --> 00:14:51.713
over the revenues for 2020.
00:14:52.630 --> 00:14:56.950
And in 2023, another $7.14 million
00:14:57.810 --> 00:15:01.383
above the proposed 2022 revenue.
00:15:02.430 --> 00:15:07.430
And finally in year 2024
another $7.79 million
00:15:07.870 --> 00:15:11.910
above the proposed revenue for 2023.
00:15:11.910 --> 00:15:14.540
The reasons given as we understand it,
00:15:14.540 --> 00:15:19.540
are for capital expenses
associated with the infrastructure
00:15:19.970 --> 00:15:23.620
of the system in region two
00:15:23.620 --> 00:15:26.600
and an increase in operations
and maintenance costs.
00:15:26.600 --> 00:15:29.160
And we've indicated in the fact sheet
00:15:29.160 --> 00:15:32.187
how much those increases are.
00:15:39.280 --> 00:15:42.720
The five Commissioners
are ultimately the ones
00:15:42.720 --> 00:15:47.720
who will decide what the rate increase
00:15:48.670 --> 00:15:50.530
for region two will be.
00:15:50.530 --> 00:15:52.750
It's my job as the judge
00:15:52.750 --> 00:15:56.150
to manage the day to
day activities of the case
00:15:56.150 --> 00:15:59.040
and then to gather and
evaluate the evidence
00:15:59.040 --> 00:16:02.000
in the proceeding for
and against a rate increase
00:16:02.000 --> 00:16:05.413
and to write a proposed
decision on that evidence.
00:16:06.650 --> 00:16:08.820
This proposed decision
will then be considered
00:16:08.820 --> 00:16:10.580
by all five Commissioners
00:16:10.580 --> 00:16:14.110
who will decide whether to
adopt my proposed decision
00:16:14.110 --> 00:16:17.020
or to adopt some alternate decision
00:16:17.020 --> 00:16:19.780
which will also be based
on the evidence collected
00:16:19.780 --> 00:16:20.993
in this proceeding.
00:16:21.840 --> 00:16:24.310
The current schedule for this proceeding
00:16:24.310 --> 00:16:27.100
indicates that the Commission
may be able to vote
00:16:27.100 --> 00:16:29.940
on a decision by the end of this year
00:16:29.940 --> 00:16:32.563
or certainly in year 2022.
00:16:33.690 --> 00:16:37.040
Comments from the public,
like those of you listening today,
00:16:37.040 --> 00:16:38.750
help the Public Utilities Commission
00:16:38.750 --> 00:16:40.463
reach an informed decision.
00:16:41.380 --> 00:16:44.090
The Commissioners and
I will pay close attention
00:16:44.090 --> 00:16:46.833
to the opinions expressed
during this public hearing.
00:16:48.310 --> 00:16:51.310
A court reporter will be
transcribing everything
00:16:51.310 --> 00:16:52.720
that is said today.
00:16:52.720 --> 00:16:57.720
If you speak, I ask you
to speak slowly and clearly
00:16:58.210 --> 00:17:01.920
so that the reporter can
capture everything that you say.
00:17:01.920 --> 00:17:03.710
The written transcript
of today's hearing
00:17:03.710 --> 00:17:06.170
will be posted publicly on a docket card
00:17:06.170 --> 00:17:07.660
for this proceeding.
00:17:07.660 --> 00:17:11.540
You can also access a
recording of today's proceeding
00:17:11.540 --> 00:17:15.140
at adminmonitor.com.
00:17:15.140 --> 00:17:20.140
That's A-D-M-I-N-M-O-N-I-T-O-R.com.
00:17:23.360 --> 00:17:28.360
That website is currently
broadcasting this hearing
00:17:29.060 --> 00:17:34.060
in both English and in Spanish
with subtitles in Spanish.
00:17:35.831 --> 00:17:40.831
And it will have a recording
of this whole proceeding today
00:17:41.820 --> 00:17:45.833
kept in its archives in English only.
00:17:46.760 --> 00:17:49.360
In addition to submitting
oral comments today,
00:17:49.360 --> 00:17:52.840
written comments on the
application for rate increase
00:17:52.840 --> 00:17:57.080
may be submitted on
the quote public comment,
00:17:57.080 --> 00:18:02.080
close quote tab, on the
docket card for this proceeding.
00:18:02.840 --> 00:18:07.840
Begin by connecting to the
website, www.cpuc.ca.gov/pph
00:18:18.850 --> 00:18:21.830
and then you can look for
this particular proceeding
00:18:22.870 --> 00:18:26.660
and also look for the tab
that says public comment
00:18:26.660 --> 00:18:30.973
and you can leave a written
public comment electronically.
00:18:32.060 --> 00:18:36.340
As of today, we've received
over a hundred comments
00:18:36.340 --> 00:18:39.663
on this proceeding by that means.
00:18:42.750 --> 00:18:47.750
Now, I'm going to invite
the Public Advisor's office
00:18:50.450 --> 00:18:55.340
to make any additional statements
00:18:55.340 --> 00:18:56.730
that they would like to make
00:18:56.730 --> 00:19:00.040
about this particular
proceeding at this time.
00:19:00.040 --> 00:19:02.960
So Ms. Hill and Ms. Brown,
00:19:02.960 --> 00:19:06.303
are you two ready to give your comments?
00:19:07.950 --> 00:19:08.783
Yes, your honor.
00:19:08.783 --> 00:19:09.963
This is Juanita Hill.
00:19:11.140 --> 00:19:12.083
Please proceed.
00:19:12.990 --> 00:19:15.870
Thank you and welcome everyone.
00:19:15.870 --> 00:19:17.360
My name is Juanita Hill
00:19:17.360 --> 00:19:21.820
and I am the supervisor in the
CPUC Public Advisor's Office.
00:19:21.820 --> 00:19:25.650
The Public Advisor's Office
assist and advises the public
00:19:25.650 --> 00:19:28.610
with participation in
Commission proceedings.
00:19:28.610 --> 00:19:31.990
First, I want to thank you
all for participating today.
00:19:31.990 --> 00:19:36.180
As the judge stated,
public participation and input
00:19:36.180 --> 00:19:40.120
are essential to the Commission's
decision making process.
00:19:40.120 --> 00:19:42.410
This is your opportunity to be heard
00:19:42.410 --> 00:19:45.540
and to share your
thoughts on the application
00:19:45.540 --> 00:19:47.540
with the Administrative Law Judge
00:19:47.540 --> 00:19:49.660
and the assigned Commissioner.
00:19:49.660 --> 00:19:51.750
If you have specific questions
00:19:51.750 --> 00:19:54.570
about the application or your service,
00:19:54.570 --> 00:19:57.490
please reach out to the
public advisor's office
00:19:57.490 --> 00:20:01.593
at public.advisor@cpuc.ca.gov,
00:20:06.930 --> 00:20:11.680
or call us at +1 866-849-8390.
00:20:14.490 --> 00:20:18.630
Or visit the CPUC or
Golden State Water websites
00:20:18.630 --> 00:20:20.590
for more information.
00:20:20.590 --> 00:20:23.650
Second, if you or anyone you know
00:20:23.650 --> 00:20:27.220
is not able to make a comment
today, as the judge said,
00:20:27.220 --> 00:20:30.210
there are several other
ways to become involved.
00:20:30.210 --> 00:20:34.150
If you wish to find more
information about becoming a party,
00:20:34.150 --> 00:20:36.810
subscribing to this proceeding
00:20:36.810 --> 00:20:41.100
or submitting comments via
email or to the docket card,
00:20:41.100 --> 00:20:45.340
please go to our
website, www.cpuc.ca.gov
00:20:50.650 --> 00:20:55.650
or email the public advisor at
public.advisor@cpuc.ca.gov.
00:21:02.060 --> 00:21:04.620
All of this information
is also on the notice
00:21:04.620 --> 00:21:07.900
that you received for this
public participation hearing.
00:21:07.900 --> 00:21:10.330
So we look forward to
your comments today.
00:21:10.330 --> 00:21:11.163
Thank you.
00:21:12.710 --> 00:21:14.670
Thank you very much.
00:21:14.670 --> 00:21:17.470
Ms. Brown, do you want to
make some additional comments?
00:21:23.520 --> 00:21:27.690
No, I don't hear anything from her.
00:21:27.690 --> 00:21:30.840
Okay. So now what I'd like to do
00:21:30.840 --> 00:21:35.160
is invite the two main
parties to this proceeding
00:21:35.160 --> 00:21:37.170
to make some comments.
00:21:37.170 --> 00:21:41.400
There are two parties, of course,
Golden State Water Company
00:21:41.400 --> 00:21:45.320
and the Public Advocate's Office,
00:21:45.320 --> 00:21:47.270
which is a part of the California
00:21:47.270 --> 00:21:48.820
Public Utilities Commission
00:21:48.820 --> 00:21:52.263
and which represents
you, the rate payers.
00:21:53.560 --> 00:21:58.090
I'm going to ask the Golden
State Water Company
00:21:58.090 --> 00:22:01.240
representative, Mr. Keith Switzer,
00:22:01.240 --> 00:22:03.540
to make a presentation first.
00:22:03.540 --> 00:22:06.410
And then that will be
followed by Mr. Chan
00:22:06.410 --> 00:22:09.330
who will be giving you the point of view
00:22:09.330 --> 00:22:13.820
of your own representative,
the Public Advocate's Office,
00:22:13.820 --> 00:22:16.100
with respect to the rate increase
00:22:16.100 --> 00:22:20.080
that's being requested
here for your region.
00:22:20.080 --> 00:22:23.540
Both speakers are
going to focus specifically
00:22:23.540 --> 00:22:25.390
on your region, region two,
00:22:25.390 --> 00:22:28.570
and the problems that are alleged
00:22:28.570 --> 00:22:31.983
to be causing a need for higher rates.
00:22:33.000 --> 00:22:36.353
And they will confine
their comments to that.
00:22:37.300 --> 00:22:39.250
We at the Commission of course
00:22:39.250 --> 00:22:43.270
are going to have to
decide the overall rate case.
00:22:43.270 --> 00:22:46.540
But for today's purposes,
we'd like to hear from you,
00:22:46.540 --> 00:22:51.490
region two residents and
customers of Golden State Water
00:22:51.490 --> 00:22:54.200
after you've heard
what they have to say.
00:22:54.200 --> 00:22:57.623
So Mr. Switzer, would you please
proceed with your comments?
00:23:00.310 --> 00:23:02.256
Yes. Thank you, Judge Ferguson.
00:23:02.256 --> 00:23:04.883
Can everybody hear me okay?
00:23:06.360 --> 00:23:07.750
Yes, we can.
00:23:07.750 --> 00:23:08.717
Okay thank you.
00:23:11.268 --> 00:23:12.530
Good afternoon.
00:23:12.530 --> 00:23:14.550
My name is Keith Switzer.
00:23:14.550 --> 00:23:16.600
I work for Golden State Water.
00:23:16.600 --> 00:23:19.460
I'm the vice president of
the company responsible
00:23:19.460 --> 00:23:23.100
for managing the
regulatory affairs department.
00:23:23.100 --> 00:23:26.340
My department is responsible
00:23:26.340 --> 00:23:28.337
for filing the General Rate Case,
00:23:28.337 --> 00:23:31.130
the application, which is the subject
00:23:31.130 --> 00:23:34.060
of today's Public Participation Hearing.
00:23:34.060 --> 00:23:36.070
I want to welcome you
to this virtual hearing
00:23:36.070 --> 00:23:37.950
and thank all of our customers
00:23:37.950 --> 00:23:40.900
who have taken the time
to join us this afternoon.
00:23:40.900 --> 00:23:43.500
We look forward to hearing from you.
00:23:43.500 --> 00:23:44.980
You've just heard Judge Ferguson
00:23:44.980 --> 00:23:48.660
provide an overview of
Golden State Water's application
00:23:48.660 --> 00:23:50.830
and the purpose of today's meeting
00:23:50.830 --> 00:23:54.030
and the Commission's
decision-making process.
00:23:54.030 --> 00:23:55.650
I'm going to take just a few minutes
00:23:55.650 --> 00:23:58.463
to expand on some of
Judge Ferguson's comments.
00:23:59.540 --> 00:24:01.530
A General Rate Case is the process
00:24:01.530 --> 00:24:05.010
that establishes the
company's overall budget
00:24:05.010 --> 00:24:09.000
or what we more commonly
refer to as our revenue requirement
00:24:09.000 --> 00:24:12.410
to operate the water system
in a manner that will allow us
00:24:12.410 --> 00:24:16.010
to provide safe and
reliable water service.
00:24:16.010 --> 00:24:18.780
The rate case also establishes
the rates that we charge
00:24:18.780 --> 00:24:20.540
for water service.
00:24:20.540 --> 00:24:23.160
The rates are set in
the rate case at a level
00:24:23.160 --> 00:24:26.410
that will generate the budget
for revenue requirement
00:24:26.410 --> 00:24:29.990
that gets approved by the
Commission in the rate case
00:24:29.990 --> 00:24:32.160
and the revenue that will be generated
00:24:32.160 --> 00:24:34.610
at the forecasted levels of water usage
00:24:34.610 --> 00:24:36.163
by you, our customers.
00:24:37.010 --> 00:24:38.630
The General Rate Case process
00:24:38.630 --> 00:24:41.310
is intended to be an open process
00:24:41.310 --> 00:24:43.020
where input from different parties
00:24:43.020 --> 00:24:45.240
is welcomed and encouraged.
00:24:45.240 --> 00:24:48.610
Your participation here
today, this afternoon,
00:24:48.610 --> 00:24:51.063
is an important part of that process.
00:24:51.900 --> 00:24:53.520
As customers of Golden State Water,
00:24:53.520 --> 00:24:55.300
you received notice that Golden State
00:24:55.300 --> 00:24:59.460
filed its rate case
application in July of 2020.
00:24:59.460 --> 00:25:01.660
That application has requested changes
00:25:01.660 --> 00:25:04.360
in our revenue requirement and rates
00:25:04.360 --> 00:25:07.033
beginning in January 2022.
00:25:08.320 --> 00:25:11.045
The Commission's final
decision on our application,
00:25:11.045 --> 00:25:14.730
as Judge Ferguson said, will
set our revenue requirement
00:25:14.730 --> 00:25:18.110
and our corresponding
rates for the three-year period,
00:25:18.110 --> 00:25:23.110
calendar years, 2022, 2023 and 2024.
00:25:23.930 --> 00:25:26.360
A quick word about the
timing of our application
00:25:26.360 --> 00:25:28.110
I think is appropriate.
00:25:28.110 --> 00:25:31.230
Golden State Water is obligated by law
00:25:31.230 --> 00:25:33.260
to file a General Rate Case application
00:25:33.260 --> 00:25:35.290
once every three years.
00:25:35.290 --> 00:25:37.270
The Commission has a preset schedule
00:25:37.270 --> 00:25:41.630
that establishes the
exact timing for our filing.
00:25:41.630 --> 00:25:44.080
The Commission's filing
schedule enables the Commission
00:25:44.080 --> 00:25:47.650
to process a General Rate
Case once every three years
00:25:47.650 --> 00:25:49.020
not only for Golden State
00:25:49.020 --> 00:25:53.080
but for all of the class A
water utilities in the state.
00:25:53.080 --> 00:25:54.770
There are nine of them.
00:25:54.770 --> 00:25:56.810
It's a tight schedule to process
00:25:56.810 --> 00:25:59.490
essentially three rate cases every year.
00:25:59.490 --> 00:26:03.750
Which is why the timing of
each application is mandated.
00:26:03.750 --> 00:26:06.330
Thus enabling the
Commission to really manage
00:26:06.330 --> 00:26:09.940
the workload of processing
all of these cases.
00:26:09.940 --> 00:26:11.170
For Golden State Water,
00:26:11.170 --> 00:26:15.547
our last rate case application
was filed in July of 2017
00:26:17.050 --> 00:26:19.540
and the Commission's
decision established the rates
00:26:19.540 --> 00:26:23.113
for 2019, 2020 and 2021.
00:26:24.570 --> 00:26:28.180
The filing of the rate case
application in July of last year
00:26:28.180 --> 00:26:30.150
was the first step in a process
00:26:30.150 --> 00:26:32.823
that will take at least
18 months to complete.
00:26:33.790 --> 00:26:35.570
Once we file the application
00:26:35.570 --> 00:26:39.650
the office of public
advocates begins their process
00:26:39.650 --> 00:26:41.470
which takes approximately eight months
00:26:41.470 --> 00:26:45.300
to review the application,
do some due diligence,
00:26:45.300 --> 00:26:48.260
a discovery process,
and ultimately results
00:26:48.260 --> 00:26:51.710
in the public advocates
issuing their own report
00:26:51.710 --> 00:26:54.080
and their own set of
recommendations to the Commission
00:26:54.080 --> 00:26:57.700
regarding our 2022 revenue requirement.
00:26:57.700 --> 00:26:59.240
Once that report is issued,
00:26:59.240 --> 00:27:03.000
the next steps include
settlement discussions,
00:27:03.000 --> 00:27:07.730
possible mediation,
evidentiary hearings,
00:27:07.730 --> 00:27:09.530
and then as Judge Ferguson said,
00:27:09.530 --> 00:27:12.000
he will issue a proposed decision
00:27:12.000 --> 00:27:14.380
that will address and
resolve all the issues
00:27:14.380 --> 00:27:15.920
in the application.
00:27:15.920 --> 00:27:18.150
And then finally the five Commissioners
00:27:18.150 --> 00:27:22.233
will vote on an issue, a
final decision on our request.
00:27:23.160 --> 00:27:26.100
Today's hearing is for our
customers in region two,
00:27:26.100 --> 00:27:28.570
our region two ratemaking area.
00:27:28.570 --> 00:27:30.330
Golden State has requested an increase
00:27:30.330 --> 00:27:32.270
in the annual revenue requirement
00:27:32.270 --> 00:27:37.270
for region two of $19.2
million for the year 2022
00:27:38.430 --> 00:27:42.410
over the current 2021 revenue.
00:27:42.410 --> 00:27:45.380
There are also additional
increases of 7.1 million
00:27:46.477 --> 00:27:50.973
and 7.8 million for the
years 2023 and 2024.
00:27:52.550 --> 00:27:54.760
Part of the process
is what is the reason
00:27:54.760 --> 00:27:56.290
for these increases.
00:27:56.290 --> 00:27:59.460
As Judge Ferguson said,
it's primarily due to the need
00:27:59.460 --> 00:28:02.390
to invest in new infrastructure.
00:28:02.390 --> 00:28:06.153
Things like new or
replacement pipelines,
00:28:07.070 --> 00:28:10.300
supply related projects,
such as new wells
00:28:10.300 --> 00:28:13.750
or replacement of old well
00:28:13.750 --> 00:28:17.333
and new facilities to treat water.
00:28:18.437 --> 00:28:22.563
Golden State has proposed
approximately $157 million
00:28:24.270 --> 00:28:28.640
of new infrastructure projects
to be built in region three
00:28:28.640 --> 00:28:30.603
over the next three years.
00:28:31.750 --> 00:28:33.670
About 88 million of that number
00:28:33.670 --> 00:28:37.440
is just to do new or
replacement pipeline projects
00:28:37.440 --> 00:28:39.160
in the area.
00:28:39.160 --> 00:28:41.700
All of these projects are
contingent upon approval
00:28:41.700 --> 00:28:46.380
by the Commission as part
of the decision in this case.
00:28:46.380 --> 00:28:48.090
There's also projected increases
00:28:48.090 --> 00:28:50.330
in the cost for purchased water
00:28:50.330 --> 00:28:53.580
as a portion of the water
supply that we provide
00:28:53.580 --> 00:28:55.370
is purchased from third parties
00:28:55.370 --> 00:28:58.363
such as agencies of the
Metropolitan Water District.
00:28:59.730 --> 00:29:03.620
So how does that translate
to the impact on a monthly bill?
00:29:03.620 --> 00:29:06.770
The answer as Judge
Ferguson has indicated
00:29:06.770 --> 00:29:10.410
will vary depending
upon a number of factors.
00:29:10.410 --> 00:29:12.180
But one of the most
important determinants
00:29:12.180 --> 00:29:14.950
is the monthly water usage of a customer
00:29:14.950 --> 00:29:16.780
since the majority of most bills
00:29:16.780 --> 00:29:19.513
is attributable to the
monthly usage charges.
00:29:20.620 --> 00:29:24.590
The monthly bill for a
residential customer in region two
00:29:24.590 --> 00:29:27.000
with a 5/8-inch meter,
00:29:27.000 --> 00:29:30.153
and that's the most common
for residential customer
00:29:30.153 --> 00:29:35.090
and that customer using
nine CCF of water a month.
00:29:35.090 --> 00:29:38.280
That's the average usage
of a residential customer
00:29:38.280 --> 00:29:43.020
in region two and a CCF, as
Judge Ferguson has explained,
00:29:43.020 --> 00:29:46.270
is about 748 gallons.
00:29:46.270 --> 00:29:49.110
So the average bill for that customer
00:29:49.110 --> 00:29:53.120
would increase in 2022
from the current level
00:29:53.120 --> 00:29:58.120
of $58 and 67 cents to $66 and 22 cents
00:29:59.630 --> 00:30:03.173
or an increase of about
$7 and 55 cents a month.
00:30:04.650 --> 00:30:07.500
If you would like to
contact Golden State Water
00:30:07.500 --> 00:30:09.530
with a question during today's hearing
00:30:10.550 --> 00:30:12.973
you can do so a couple of ways.
00:30:15.562 --> 00:30:19.160
On your screen, you can contact us
00:30:19.160 --> 00:30:20.580
either by phone or by email.
00:30:20.580 --> 00:30:21.440
I'm sorry.
00:30:21.440 --> 00:30:23.970
Golden State has set up
a special call-in number
00:30:23.970 --> 00:30:25.730
for customers who would like to speak
00:30:25.730 --> 00:30:30.300
to a company representative
about the rate case application.
00:30:30.300 --> 00:30:33.110
That number, which is
shown here on the screen
00:30:33.110 --> 00:30:36.923
is 1-877-288-8816.
00:30:39.780 --> 00:30:44.480
Golden State Water employees
are standing by at that number
00:30:45.510 --> 00:30:47.120
ready to answer your questions
00:30:47.120 --> 00:30:50.800
regarding the rate case application.
00:30:50.800 --> 00:30:53.990
If you prefer to ask
your question by email
00:30:53.990 --> 00:30:56.360
we have also set up a
special email address
00:30:56.360 --> 00:30:58.130
specifically for questions regarding
00:30:58.130 --> 00:31:00.280
the rate case application.
00:31:00.280 --> 00:31:03.000
That email, which is
also shown on the screen
00:31:03.000 --> 00:31:05.350
is 2022GRC@gswater.com.
00:31:11.680 --> 00:31:13.560
Before concluding my comments today
00:31:13.560 --> 00:31:15.550
I wanted to speak to the extraordinary
00:31:15.550 --> 00:31:17.220
and difficult circumstances
00:31:17.220 --> 00:31:19.603
that we all find ourselves in right now.
00:31:20.460 --> 00:31:22.660
I'm very proud that Golden
State Water employees
00:31:22.660 --> 00:31:25.480
have been working hard
throughout the pandemic,
00:31:25.480 --> 00:31:27.860
making sure that you, our customers,
00:31:27.860 --> 00:31:30.380
have continued to receive uninterrupted,
00:31:30.380 --> 00:31:33.343
safe and reliable water
service during this time.
00:31:34.200 --> 00:31:36.440
I also want to share that we recognize
00:31:36.440 --> 00:31:39.420
that many of our customers
are experiencing financial
00:31:39.420 --> 00:31:44.080
and economic hardships
during this pandemic situation.
00:31:44.080 --> 00:31:47.580
Despite the challenges of
the COVID-19 pandemic,
00:31:47.580 --> 00:31:50.510
our customer service
team has remained available
00:31:50.510 --> 00:31:54.480
24 hours per day to help
customers answer questions
00:31:54.480 --> 00:31:56.290
and solve problems.
00:31:56.290 --> 00:31:59.190
Golden State has
put in place protections
00:31:59.190 --> 00:32:01.780
to ensure that customers
continue to receive
00:32:01.780 --> 00:32:04.033
safe and reliable water service.
00:32:04.930 --> 00:32:06.910
Also included in our rate cases
00:32:06.910 --> 00:32:09.850
are provision to offer a
monthly credit on the bill
00:32:09.850 --> 00:32:14.203
to low-income customers who
meet specific income criteria.
00:32:15.090 --> 00:32:20.090
If you go to our website,
www.gswater.com,
00:32:23.750 --> 00:32:26.250
you will find a link on the home page
00:32:26.250 --> 00:32:30.700
to our emergency
disaster relief programs
00:32:30.700 --> 00:32:32.700
and another one to our low income
00:32:32.700 --> 00:32:34.240
customer assistance programs.
00:32:34.240 --> 00:32:37.180
As you click on those
links you'll get information
00:32:37.180 --> 00:32:40.850
which will describe the various
protections and programs
00:32:40.850 --> 00:32:41.953
that are available.
00:32:42.840 --> 00:32:46.060
With that I will close
my comments today.
00:32:46.060 --> 00:32:48.830
Again, I want to thank all
of you for taking the time
00:32:48.830 --> 00:32:50.520
to join this meeting.
00:32:50.520 --> 00:32:52.960
And I look forward to your comments.
00:32:52.960 --> 00:32:55.493
Thank you, Judge
Ferguson for this opportunity.
00:32:56.620 --> 00:32:58.500
And thank you, Mr. Switzer.
00:32:58.500 --> 00:33:01.770
I just want to point
out to our listeners
00:33:01.770 --> 00:33:04.410
that there is a slight discrepancy
00:33:04.410 --> 00:33:09.410
between what we the Commission
have put in our fact sheet
00:33:10.540 --> 00:33:15.540
in terms of the first year,
the 2022 increase in revenue
00:33:16.630 --> 00:33:20.130
and the number that you gave
in your presentation just now.
00:33:20.130 --> 00:33:22.110
And the reason for the difference
00:33:22.110 --> 00:33:25.830
is that we at the Commission
used a comparison
00:33:25.830 --> 00:33:30.830
between what you are
proposing for 2022 versus 2020
00:33:33.840 --> 00:33:36.980
whereas in your comments just now
00:33:36.980 --> 00:33:41.980
you used a comparison of 2022 to 2021.
00:33:42.310 --> 00:33:47.310
So in case anybody is paying
very sharp attention to this
00:33:48.180 --> 00:33:50.320
and has their pencil and paper out,
00:33:50.320 --> 00:33:52.490
I just want to make
sure that they understand
00:33:52.490 --> 00:33:53.890
that that's the explanation.
00:33:55.143 --> 00:33:59.743
It's no one's intention
to mislead anybody here.
00:34:01.834 --> 00:34:04.790
It's just that different
years were picked
00:34:04.790 --> 00:34:09.220
for the comparison by
Mr. Switzer and by me.
00:34:09.220 --> 00:34:10.310
So thank you again.
00:34:10.310 --> 00:34:11.143
All right.
00:34:11.143 --> 00:34:12.660
Thank you,
judge for that clarification.
00:34:12.660 --> 00:34:13.517
I'm sorry if I
00:34:14.410 --> 00:34:15.770
caused any confusion.
There's
00:34:15.770 --> 00:34:17.470
no need to apologize.
00:34:17.470 --> 00:34:21.730
Okay now for the representative of the,
00:34:21.730 --> 00:34:26.280
Mr. Chan, you are representing
the rate payers in this
00:34:26.280 --> 00:34:27.990
and I'm sure we've
got a lot of listeners
00:34:27.990 --> 00:34:30.870
who are very eager to
hear what you have to say.
00:34:30.870 --> 00:34:33.383
So please go ahead
and make your comments.
00:34:35.230 --> 00:34:38.200
Yeah, good afternoon,
Judge Ferguson.
00:34:38.200 --> 00:34:40.100
My name is Victor Chan.
00:34:40.100 --> 00:34:42.540
I'm the project manager
00:34:42.540 --> 00:34:45.880
representing the Public Advocates Office
00:34:45.880 --> 00:34:49.673
or Cal Advocates short.
00:34:50.800 --> 00:34:53.160
Today I'm gonna provide an overview
00:34:53.160 --> 00:34:57.740
of Public Advocate's
Office role in this application
00:34:57.740 --> 00:35:00.790
as well as our overall recommendations
00:35:00.790 --> 00:35:03.320
in regards to Golden
State Water Company's
00:35:03.320 --> 00:35:05.033
rate increase request.
00:35:06.680 --> 00:35:09.810
The Public Advocate's
Office is an independent office
00:35:09.810 --> 00:35:13.070
within the California
Public Utilities Commission
00:35:13.070 --> 00:35:16.270
that represents the
interest of rate payers.
00:35:16.270 --> 00:35:20.510
Our statutory mission is to
obtain the lowest possible rate
00:35:20.510 --> 00:35:23.020
for service consistent with reliable
00:35:23.020 --> 00:35:24.503
and safe service levels.
00:35:25.820 --> 00:35:30.310
The Public Advocate's Office
has a multi-disciplinary staff
00:35:30.310 --> 00:35:35.000
with expertise in engineering,
economics, accounting
00:35:35.000 --> 00:35:36.780
and finance.
00:35:36.780 --> 00:35:38.690
The Public Advocate's Office views
00:35:38.690 --> 00:35:41.963
do not necessarily reflect
those of the Commission.
00:35:43.450 --> 00:35:47.560
In February 2021,
Public Advocate's Office
00:35:47.560 --> 00:35:50.280
served it's testimony on
Golden State Water Company
00:35:50.280 --> 00:35:55.280
General Rate Case
application number 20-07-012
00:35:55.770 --> 00:35:59.210
in which Golden State Water
Company requested rate increase
00:35:59.210 --> 00:36:03.123
for its region one, two,
and three service areas.
00:36:04.240 --> 00:36:07.840
Public Advocate's Office
testimony presents its analysis
00:36:07.840 --> 00:36:10.920
and recommendation
on a wide range of issues
00:36:10.920 --> 00:36:15.570
including capital investment,
sales, wage in time,
00:36:15.570 --> 00:36:19.733
conservation, operating
expenses and taxes.
00:36:21.400 --> 00:36:23.450
Compared to Golden State
Water Company's request
00:36:23.450 --> 00:36:28.450
of 16.66% increase for
its region two service area,
00:36:29.700 --> 00:36:31.500
the Public Advocate's Office recommends
00:36:31.500 --> 00:36:36.150
no more than 7.83% increase in revenue
00:36:36.150 --> 00:36:37.513
and average system rate.
00:36:39.350 --> 00:36:42.140
The following are from Public Advocates
00:36:42.140 --> 00:36:45.330
specific recommendations that impact
00:36:45.330 --> 00:36:47.963
the numbers we recommended.
00:36:48.810 --> 00:36:50.900
One, authorized funding
00:36:50.900 --> 00:36:54.680
for a more moderate
pipeline replacement program.
00:36:54.680 --> 00:36:57.680
Two, reduce Golden State Water Company's
00:36:57.680 --> 00:37:00.663
proposed salary
increase and new position.
00:37:01.510 --> 00:37:05.270
Three, decrease Golden State's request
00:37:05.270 --> 00:37:09.340
for operating expenses
and the capital investments
00:37:09.340 --> 00:37:11.953
from Golden State Water
Company's general office.
00:37:12.900 --> 00:37:17.900
And forth, removed a large
number of unfinished projects
00:37:18.320 --> 00:37:20.520
that are not providing
rate payers benefits.
00:37:21.831 --> 00:37:26.220
To view Public Advocates
detailed report and analysis
00:37:26.220 --> 00:37:28.060
in this General Rate Case,
00:37:28.060 --> 00:37:33.060
you can visit our Public
Advocates website
00:37:33.060 --> 00:37:35.480
www.publicadvocates.cpuc.ca.gov
00:37:40.610 --> 00:37:44.654
where you look for Golden
State Water Company
00:37:44.654 --> 00:37:48.093
2020 General Rate Case application.
00:37:49.350 --> 00:37:50.793
This concludes my remarks.
00:37:53.110 --> 00:37:55.370
Mr. Chan, thank you very much.
00:37:55.370 --> 00:37:59.800
I know that the listeners
are as appreciative as I am
00:37:59.800 --> 00:38:01.570
of your comments.
00:38:01.570 --> 00:38:05.490
And I look forward to
hearing all of the evidence
00:38:05.490 --> 00:38:08.920
from both speakers when
they have an opportunity
00:38:08.920 --> 00:38:13.150
to present it later next month.
00:38:13.150 --> 00:38:15.970
And in the month of July we will have
00:38:15.970 --> 00:38:18.010
what we call an evidentiary hearing
00:38:18.010 --> 00:38:21.010
which is much like a civil trial
00:38:21.010 --> 00:38:24.780
where the two parties will
offer their counter evidence
00:38:24.780 --> 00:38:26.610
against one another.
00:38:26.610 --> 00:38:31.610
And I will then make my
decision based on that evidence.
00:38:33.130 --> 00:38:36.653
So thank you both very
much for that presentation.
00:38:37.600 --> 00:38:42.380
Now, let me ask the operator
how many people we have
00:38:42.380 --> 00:38:47.380
in the queue to speak, if he
happens to know, right now.
00:38:47.730 --> 00:38:49.293
Calvin, can you tell me that?
00:38:51.160 --> 00:38:53.760
I currently have
one person in our queue.
00:38:57.960 --> 00:38:59.440
That's not overwhelming
00:38:59.440 --> 00:39:04.440
but let me just, before
we turn to that speaker,
00:39:04.540 --> 00:39:08.460
let me encourage more
of you who are listening
00:39:08.460 --> 00:39:11.530
to make comments on the record.
00:39:11.530 --> 00:39:16.180
That is the whole
purpose of this presentation
00:39:16.180 --> 00:39:17.620
by the Commission.
00:39:17.620 --> 00:39:19.660
It's a two way street.
00:39:19.660 --> 00:39:20.840
We're presenting to you
00:39:20.840 --> 00:39:24.960
but we really need you
to present back to us.
00:39:24.960 --> 00:39:29.960
And we need to take all of
your comments into consideration
00:39:30.040 --> 00:39:35.040
as we work on a result for
this particular application.
00:39:35.560 --> 00:39:39.000
So those who wish to speak,
00:39:39.000 --> 00:39:42.110
if you haven't done so
already, here's how you do it.
00:39:42.110 --> 00:39:45.040
You press star one.
00:39:45.040 --> 00:39:50.040
So the star key and then one,
the numeral one on your phone,
00:39:51.500 --> 00:39:55.753
and the operator will add
you to the lineup of speakers.
00:39:57.220 --> 00:40:02.220
Based on the number of
speakers that do sign up,
00:40:03.060 --> 00:40:07.350
I will allow two minutes for everybody
00:40:07.350 --> 00:40:09.843
to make their individual statements.
00:40:10.920 --> 00:40:13.593
If we get too many people,
00:40:14.600 --> 00:40:16.990
but I don't expect that to happen.
00:40:16.990 --> 00:40:19.850
It's never happened in my experience.
00:40:19.850 --> 00:40:23.660
But if we do get too many
people then I may have to cut back
00:40:23.660 --> 00:40:27.090
the amount of time to
something like a minute and a half.
00:40:27.090 --> 00:40:30.710
A chime will sound
at the two minute mark
00:40:30.710 --> 00:40:34.150
and that means that's
the end of the time for you
00:40:34.150 --> 00:40:38.103
to finish up your comment
and let the next person speak.
00:40:40.070 --> 00:40:42.510
Those who do speak on the phone,
00:40:42.510 --> 00:40:46.700
please speak slowly and
start by announcing your name
00:40:46.700 --> 00:40:48.820
and then spelling your name slowly
00:40:48.820 --> 00:40:52.680
so the court reporter
can get it down correctly.
00:40:52.680 --> 00:40:55.640
I also would like to ask you to identify
00:40:55.640 --> 00:40:59.790
which city or town you're calling from.
00:40:59.790 --> 00:41:01.423
Where you reside.
00:41:02.730 --> 00:41:04.210
If you are calling from someplace
00:41:04.210 --> 00:41:05.330
other than where you reside,
00:41:05.330 --> 00:41:09.823
please let us know what
town your residence is in.
00:41:12.940 --> 00:41:17.040
It will be best if you speak
directly into your phone
00:41:19.120 --> 00:41:22.250
and please avoid having
your phone on speaker
00:41:22.250 --> 00:41:24.483
when you are providing your comments.
00:41:26.370 --> 00:41:29.620
Now, I don't think this is the case
00:41:29.620 --> 00:41:32.920
but let me ask Calvin again.
00:41:32.920 --> 00:41:34.940
Do we have any public officials
00:41:34.940 --> 00:41:37.670
who are lined up in the queue
00:41:37.670 --> 00:41:40.033
because typically we start with them.
00:41:40.970 --> 00:41:44.160
Are there any individuals
who identify themselves
00:41:44.160 --> 00:41:45.673
as public officials, Calvin?
00:41:46.770 --> 00:41:47.640
Currently no.
00:41:47.640 --> 00:41:49.100
None.
00:41:49.100 --> 00:41:50.630
Okay. All right.
00:41:50.630 --> 00:41:53.173
Then please call the
first person in the queue.
00:41:54.410 --> 00:41:57.640
Thank you. Our first
commenter is David Faber.
00:41:57.640 --> 00:41:58.540
Your line is open.
00:42:00.857 --> 00:42:02.180
All right (clears throat).
00:42:02.180 --> 00:42:07.180
Excuse me. Judge Ferguson
this is David Faber, F-A-B-E-R.
00:42:07.360 --> 00:42:11.740
I live here in region two
in Lakewood, California.
00:42:11.740 --> 00:42:14.630
The reason for my call and comments
00:42:14.630 --> 00:42:18.790
is that as a senior
citizen on a fixed income,
00:42:18.790 --> 00:42:21.480
I pay my monthly bill every month
00:42:21.480 --> 00:42:25.220
but I also receive a low-income credit.
00:42:25.220 --> 00:42:27.830
But what concerned me the most
00:42:27.830 --> 00:42:30.500
is on my property tax bill,
00:42:30.500 --> 00:42:33.050
I am charged on three different things.
00:42:33.050 --> 00:42:35.190
The Metro Water District,
00:42:35.190 --> 00:42:39.900
the Safe Clean Water
and the San Dimas District
00:42:39.900 --> 00:42:44.453
and that amount in my
tax bill $334 every year
00:42:46.270 --> 00:42:50.320
then I have to pay for
the taxes on this water.
00:42:50.320 --> 00:42:55.320
And as a senior, I appreciate
the low income credit
00:42:56.900 --> 00:43:01.810
but is there any reason
why they must do an increase
00:43:01.810 --> 00:43:05.190
because of what we're
paying on our property taxes
00:43:05.190 --> 00:43:09.760
for all of this water
problems that are out there
00:43:09.760 --> 00:43:12.620
by the maintenance and everything else.
00:43:12.620 --> 00:43:15.420
That's the question that I
have for you, Judge Ferguson.
00:43:16.640 --> 00:43:18.640
Okay. Well, I'll tell you what?
00:43:18.640 --> 00:43:20.223
Thank you very much, Mr. Faber.
00:43:21.470 --> 00:43:26.110
I just heard the mayor of
San Jose on the local news
00:43:26.110 --> 00:43:29.330
here in San Francisco and San Jose
00:43:29.330 --> 00:43:33.750
talk about a very similar
problem down in San Jose.
00:43:33.750 --> 00:43:36.780
And what I think is best
00:43:36.780 --> 00:43:40.023
is as long as we have
a short queue right now,
00:43:40.970 --> 00:43:45.440
I will let, if they are willing,
Mr. Switzer and Mr. Chan
00:43:45.440 --> 00:43:50.440
can respond to your concern right here
00:43:50.930 --> 00:43:52.210
on the record quickly.
00:43:52.210 --> 00:43:53.930
Just a minute for each one of you.
00:43:53.930 --> 00:43:56.510
So Mr. Switzer, would
you like to respond
00:43:56.510 --> 00:44:01.510
to Mr. Faber's question
about the tax bill charges
00:44:02.670 --> 00:44:05.653
for water that he's
seeing in his property tax?
00:44:08.650 --> 00:44:10.400
Sure. Thank you, judge.
00:44:11.250 --> 00:44:14.100
Just very quickly, none of the charges
00:44:14.100 --> 00:44:17.800
that are on a property tax bill
relate to Golden State Water
00:44:17.800 --> 00:44:20.780
or Golden State Water's operations.
00:44:20.780 --> 00:44:23.700
The charges that you
see on a property tax bill
00:44:23.700 --> 00:44:26.680
are for other agencies.
00:44:26.680 --> 00:44:29.020
You mentioned
Metropolitan Water District
00:44:29.020 --> 00:44:33.690
and I think, I don't
remember the other two.
00:44:33.690 --> 00:44:36.793
But those are public agencies.
00:44:38.270 --> 00:44:39.520
They're not our costs.
00:44:39.520 --> 00:44:40.810
They're not our charges.
00:44:40.810 --> 00:44:42.900
None of that money goes to us.
00:44:42.900 --> 00:44:46.790
They go to these third-party
services that have...
00:44:49.120 --> 00:44:51.380
What they do is
connected to water service
00:44:51.380 --> 00:44:53.530
but it's separate and apart
00:44:53.530 --> 00:44:57.560
from what Golden State
Water bill is covering.
00:44:57.560 --> 00:45:00.280
So I'll defer now to Victor.
00:45:00.280 --> 00:45:01.113
Well, thank you very much.
00:45:01.113 --> 00:45:02.047
Mr. Chan.
00:45:04.570 --> 00:45:07.860
Yeah, I don't think I
have any more to add to it.
00:45:07.860 --> 00:45:12.420
You know reviewing property
tax bill on customer side
00:45:12.420 --> 00:45:17.420
is not part of the scope of
reviewing this application.
00:45:17.700 --> 00:45:22.060
So I agree with Golden
State in this case, you know,
00:45:22.060 --> 00:45:27.060
that those are not related to
the company's rate increase.
00:45:29.390 --> 00:45:30.573
Thank you Chan.
00:45:32.360 --> 00:45:33.770
Okay thank you Mr. Faber.
00:45:33.770 --> 00:45:37.260
We appreciate your coming
and participating in this.
00:45:37.260 --> 00:45:40.110
All right thank
you Judge Ferguson.
00:45:40.110 --> 00:45:41.870
All right thank you very much.
00:45:41.870 --> 00:45:43.230
Okay thank you.
00:45:43.230 --> 00:45:46.653
Mr. Calvin, are there any
further speakers in line?
00:45:48.040 --> 00:45:48.873
Yes, sir.
00:45:48.873 --> 00:45:52.410
Our next speaker comes from Steven Cruz.
00:45:52.410 --> 00:45:53.663
Your line is now open.
00:45:56.308 --> 00:45:58.330
Hello, your honor.
00:45:58.330 --> 00:45:59.530
Hello.
Hear me okay?
00:45:59.530 --> 00:46:00.580
Yeah, hi.
00:46:00.580 --> 00:46:02.050
I can hear you.
00:46:02.050 --> 00:46:03.510
Thanks for taking
the opportunity here.
00:46:03.510 --> 00:46:05.700
I have a few things that
I am pretty interested in.
00:46:05.700 --> 00:46:07.180
I live in Lakewood.
00:46:07.180 --> 00:46:10.770
And I live in Lakewood,
Eastern part of Lakewood
00:46:10.770 --> 00:46:13.040
which is on Golden State Water Company.
00:46:13.040 --> 00:46:16.000
And my son lives in the
Western part of Lakewood.
00:46:16.000 --> 00:46:18.540
And they're on well
water which is non-profit
00:46:18.540 --> 00:46:22.760
and his bill's 40% less than my bill.
00:46:22.760 --> 00:46:24.900
So I ask myself what's
wrong with this picture?
00:46:24.900 --> 00:46:28.170
I thought that the law
was capping 9% profit.
00:46:28.170 --> 00:46:31.730
Lakewood is non-profit and
Golden State Water Company profit
00:46:31.730 --> 00:46:33.988
why is there 40% difference?
00:46:33.988 --> 00:46:34.821
It's rhetorical.
00:46:34.821 --> 00:46:36.890
I have many points to cover here.
00:46:36.890 --> 00:46:40.160
I also came across a chart,
00:46:40.160 --> 00:46:41.860
a graph I'd like to email with you
00:46:41.860 --> 00:46:44.490
if afterwards you want to
give me an email address.
00:46:44.490 --> 00:46:46.150
But some concerned citizens of Lakewood
00:46:46.150 --> 00:46:48.440
put together a chart.
00:46:48.440 --> 00:46:49.503
And then what they did is they took
00:46:49.503 --> 00:46:52.100
Golden State's Water
Company's current rate
00:46:52.100 --> 00:46:54.830
and the proposed rates
for the next three years
00:46:54.830 --> 00:46:57.840
and compared them, it's a bar chart,
00:46:57.840 --> 00:46:59.670
compared them to their competitors,
00:46:59.670 --> 00:47:04.670
all nine class A companies
and the cities more related
00:47:05.770 --> 00:47:09.680
to around Lakewood and
also about another 10 cities
00:47:09.680 --> 00:47:12.500
that provide some of their
own water like Lakewood.
00:47:12.500 --> 00:47:14.720
32 cities in all.
00:47:14.720 --> 00:47:17.240
And when you look at the chart,
00:47:17.240 --> 00:47:21.890
I want to say water
companies, tier number one
00:47:21.890 --> 00:47:26.410
is already the second
highest of 32 cities.
00:47:26.410 --> 00:47:27.680
And if you look at tier two,
00:47:27.680 --> 00:47:30.503
they're the fourth highest of 32 cities.
00:47:31.430 --> 00:47:33.420
And then after the implementation
00:47:33.420 --> 00:47:37.720
of the proposed rate increases
they're far above everybody.
00:47:37.720 --> 00:47:40.550
All 32 cities across the board.
00:47:40.550 --> 00:47:44.000
So again, maybe at the
end I'd like to email you chart.
00:47:44.000 --> 00:47:45.090
I've got supporting data.
00:47:45.090 --> 00:47:46.910
All this information
was taken off the web.
00:47:46.910 --> 00:47:47.880
Can be verified
00:47:48.990 --> 00:47:52.400
and hopefully that can
be part of the evidence.
00:47:52.400 --> 00:47:54.070
Also, I hope you have
00:47:54.070 --> 00:47:57.310
or somebody has looked
into their first quarter 10-Q
00:47:57.310 --> 00:47:59.070
for 2021.
00:47:59.070 --> 00:48:00.690
If you look at that,
their profits are up.
00:48:00.690 --> 00:48:02.490
Like, I don't know what's going on here
00:48:02.490 --> 00:48:05.950
but they're, obviously
I no accountant either
00:48:05.950 --> 00:48:08.120
but I have a recommendation at the end,
00:48:08.120 --> 00:48:11.750
that their profits and income
is up over 10% already.
00:48:11.750 --> 00:48:14.920
The cash is up significant
or increased dividends.
00:48:14.920 --> 00:48:16.190
And here's a good one,
00:48:16.190 --> 00:48:19.360
there's $8 million in the
first quarter for depreciation.
00:48:19.360 --> 00:48:21.550
Now, if they have all
these capital expenditures
00:48:21.550 --> 00:48:23.010
I see no accrual.
00:48:23.010 --> 00:48:25.390
So why are they taking
8 million per quarter,
00:48:25.390 --> 00:48:27.950
three, $2 million a
year in depreciation,
00:48:27.950 --> 00:48:31.290
as a tax shelter what are
they doing the sheltered cash?
00:48:31.290 --> 00:48:34.190
It's not going into
accrual that I can see
00:48:34.190 --> 00:48:36.210
for all these investments.
00:48:36.210 --> 00:48:38.423
And also their apparent staff.
00:48:39.310 --> 00:48:44.020
They have huge people,
huge incomes on their board.
00:48:44.020 --> 00:48:48.660
500 thousand, 600 thousand,
700 thousand, 2.8 million.
00:48:48.660 --> 00:48:51.870
There's a lot of profits
going into these salaries.
00:48:51.870 --> 00:48:54.330
So I have a recommendation
here on this one
00:48:54.330 --> 00:48:57.330
that we have a formal
audit of their books.
00:48:57.330 --> 00:49:01.790
Maybe accounts or CPAs
from each of these cities of all
00:49:01.790 --> 00:49:04.400
volunteer basis come
together, do an audit
00:49:04.400 --> 00:49:06.823
and see what's really
going on with their books.
00:49:07.930 --> 00:49:09.530
Let's also talk about inflation.
00:49:10.890 --> 00:49:13.050
On the list of comments on CPU site
00:49:13.050 --> 00:49:15.880
actually there's over 220 of them.
00:49:15.880 --> 00:49:18.610
It must be a conflict somewhere
between 100 comments and 220
00:49:18.610 --> 00:49:20.570
but I found 220.
00:49:20.570 --> 00:49:23.560
And the city of Lakewood
published a comment
00:49:23.560 --> 00:49:24.910
that was interesting.
00:49:24.910 --> 00:49:26.720
That their increases
for the first year alone
00:49:26.720 --> 00:49:31.250
is 13.4 times the rate of
inflation compared to 2020.
00:49:31.250 --> 00:49:32.530
All right.
00:49:32.530 --> 00:49:33.600
And here's another one for you.
00:49:33.600 --> 00:49:35.310
How about the old, "I
bought too much money
00:49:35.310 --> 00:49:37.800
but you need to pay for it" RAM charges.
00:49:37.800 --> 00:49:38.940
Now I heard you say judge
00:49:38.940 --> 00:49:41.360
that maybe we can cut back on our water.
00:49:41.360 --> 00:49:46.288
But understand there's a RAM
fee when we cut back on water.
00:49:46.288 --> 00:49:50.060
So water company just charges
us for not using that water.
00:49:50.060 --> 00:49:52.720
And currently there's 300 and $210,000
00:49:52.720 --> 00:49:54.870
in the first quarter alone deposited.
00:49:54.870 --> 00:49:56.640
What's that? $1.2 million a year
00:49:56.640 --> 00:49:59.710
and they're charging
for not using the water.
00:49:59.710 --> 00:50:00.950
Here's the reality check.
00:50:00.950 --> 00:50:05.470
I live in a home, a track of
250 homes in my neighborhood.
00:50:05.470 --> 00:50:07.070
10% of them have already put water in
00:50:07.070 --> 00:50:09.242
because our bills are so high here
00:50:09.242 --> 00:50:12.380
in the Eastern part of Lakewood.
00:50:12.380 --> 00:50:16.160
And if we go through this,
almost 26.7% increases
00:50:16.160 --> 00:50:16.993
over three years
00:50:16.993 --> 00:50:19.050
it's going to be a
self-fulfilling prophecy.
00:50:19.050 --> 00:50:21.000
It's going to be decrease
their property rates.
00:50:21.000 --> 00:50:24.043
Actually, my little town
is going to look like
00:50:24.043 --> 00:50:26.420
a little area here,
Bullhead City, Arizona
00:50:26.420 --> 00:50:28.400
Nobody's going to want anything.
00:50:28.400 --> 00:50:30.160
So kind of in a short conclusion,
00:50:30.160 --> 00:50:31.980
I'm trying to wrap this up here.
00:50:31.980 --> 00:50:34.210
I see no reason under the sun
00:50:34.210 --> 00:50:36.920
that justifies this kind of an onerous
00:50:36.920 --> 00:50:40.380
and actually kind of publicly
perceived greedy requests
00:50:40.380 --> 00:50:44.290
to increase their rates,
especially since their earnings
00:50:44.290 --> 00:50:47.890
and their profits are up as
early as 2021 first quarter.
00:50:47.890 --> 00:50:49.310
So the only conclusion one can draw
00:50:49.310 --> 00:50:51.990
is maybe they're just
probably mismanaged.
00:50:51.990 --> 00:50:54.630
And so my question is why the customers
00:50:54.630 --> 00:50:56.860
have to pay for that mismanagement.
00:50:56.860 --> 00:51:01.860
You know, what else could
explain such a huge increase
00:51:02.385 --> 00:51:05.920
you know, and all of a sudden
when you're doing profits,
00:51:05.920 --> 00:51:08.820
shareholder dividends
are increasing every year.
00:51:08.820 --> 00:51:12.270
So finally I see that
there's no evidence
00:51:12.270 --> 00:51:16.710
from my cursory view here for a need.
00:51:16.710 --> 00:51:19.380
And so I would like
to see justice prevail
00:51:19.380 --> 00:51:22.393
and there's absolutely
no authorized increases.
00:51:24.110 --> 00:51:25.850
My last thing is, sir,
00:51:25.850 --> 00:51:28.080
how are you going to
remember all this stuff 18 months?
00:51:28.080 --> 00:51:28.913
I hope you can.
00:51:28.913 --> 00:51:30.860
I hope there's an email
address I can use too.
00:51:30.860 --> 00:51:33.633
Now here's what
I want you to do.
00:51:34.510 --> 00:51:36.400
First of all, I compliment you.
00:51:36.400 --> 00:51:39.550
You obviously have
spent a good deal of time
00:51:39.550 --> 00:51:42.720
analyzing the rate request.
00:51:42.720 --> 00:51:45.740
So what I would like you to do,
00:51:45.740 --> 00:51:48.900
and if she is still on the line,
00:51:48.900 --> 00:51:51.990
I would like to get Juanita Hill
00:51:51.990 --> 00:51:56.513
to make sure that you've
got the right way of doing this.
00:51:57.395 --> 00:52:00.340
I want you to get this
on the public comment
00:52:00.340 --> 00:52:04.170
on the docket sheet on
the website of the CPUC.
00:52:04.170 --> 00:52:07.093
In other words, for all the
public to see including me.
00:52:08.178 --> 00:52:10.480
I plan to do
that but I can't download.
00:52:10.480 --> 00:52:12.530
It will not allow me
to download a chart.
00:52:12.530 --> 00:52:14.410
And so I wanted to
email the chart to you.
00:52:14.410 --> 00:52:16.090
That's worth 1000 words right there.
00:52:16.090 --> 00:52:16.923
Okay.
00:52:16.923 --> 00:52:17.950
Okay I get the point.
00:52:17.950 --> 00:52:21.180
Okay so let me ask
Juanita Hill to address that
00:52:21.180 --> 00:52:23.090
because we want to
see how we can get it in.
00:52:23.090 --> 00:52:26.060
I've heard of IT problems like this
00:52:26.900 --> 00:52:29.713
that have occurred during
the COVID-19 period
00:52:31.920 --> 00:52:33.740
that we're working our way through.
00:52:33.740 --> 00:52:37.510
But Ms. Hill, is there
some way that this customer
00:52:37.510 --> 00:52:42.510
can get his materials onto
the public comment tab
00:52:45.070 --> 00:52:46.483
of the docket sheet?
00:52:48.030 --> 00:52:49.400
Thank you, judge.
00:52:49.400 --> 00:52:50.700
Yes. What he can do is
00:52:50.700 --> 00:52:53.870
if he can contact the
Public Advisor's Office
00:52:53.870 --> 00:52:57.180
because we have people
on schedule right now
00:52:57.180 --> 00:52:59.140
that can assist him.
00:52:59.140 --> 00:53:03.003
He can either call us
which our number is the
00:53:03.003 --> 00:53:08.003
1-866-849-8390
00:53:09.780 --> 00:53:12.270
or he can send an email to contact us
00:53:12.270 --> 00:53:17.000
which is the public.advisor@cpuc.ca.gov
00:53:22.780 --> 00:53:23.880
and we can assist him.
00:53:25.153 --> 00:53:30.153
Okay public.advisor.ca
00:53:31.940 --> 00:53:34.200
no .cpuc.ca.gov
00:53:35.800 --> 00:53:36.633
Is that right?
00:53:36.633 --> 00:53:37.770
Yeah. I'll repeat it.
00:53:37.770 --> 00:53:41.503
It's public.advisor@cpuc.ca.gov.
00:53:47.960 --> 00:53:48.800
Okay.
00:53:48.800 --> 00:53:51.370
Well, I mean if I attach my chart
00:53:51.370 --> 00:53:52.770
that I have here for review.
00:53:54.580 --> 00:53:55.830
If you email us,
00:53:55.830 --> 00:53:57.590
we can walk you
through the whole process
00:53:57.590 --> 00:54:01.810
and let you know how to
actually get your comment in
00:54:01.810 --> 00:54:04.760
and anything else
documentations that you have.
00:54:04.760 --> 00:54:06.160
Okay.
00:54:06.160 --> 00:54:07.167
Very good thank you.
00:54:08.310 --> 00:54:10.080
One more thing
that I want to say
00:54:10.080 --> 00:54:14.080
before you leave this hearing.
00:54:14.080 --> 00:54:18.140
Just so that you know, the
Commission last December
00:54:19.840 --> 00:54:24.530
issued a decision that indicated
00:54:24.530 --> 00:54:27.810
that this will be the last rate cycle
00:54:27.810 --> 00:54:32.660
when the full RAMS that have existed
00:54:32.660 --> 00:54:36.380
including at Golden State
Water will be permitted.
00:54:36.380 --> 00:54:40.410
So this will be the last
time that there is a full,
00:54:40.410 --> 00:54:41.620
what we call a full RAM,
00:54:41.620 --> 00:54:46.620
which is what Golden State
currently has, will be allowed.
00:54:47.010 --> 00:54:51.900
The next rate case for Golden
State it will not be allowed.
00:54:51.900 --> 00:54:56.900
So there's an end in sight for
the problem that you perceive
00:54:57.400 --> 00:54:59.823
with respect to the RAMs.
00:55:01.070 --> 00:55:03.200
For
consideration, your honor,
00:55:03.200 --> 00:55:07.180
I think that now expires in 2025.
00:55:07.180 --> 00:55:10.040
So they want all these
increases plus the RAM.
00:55:10.040 --> 00:55:11.390
Something's wrong
with this picture, sir.
00:55:11.390 --> 00:55:14.010
And I sure hope you
can keep this documented
00:55:14.010 --> 00:55:16.630
and help us out and
show us some justice.
00:55:16.630 --> 00:55:19.570
All right. Well,
yeah, but it will end
00:55:22.080 --> 00:55:23.610
at the end of this rate case cycle
00:55:23.610 --> 00:55:26.660
that we're considering
right now it will end.
00:55:26.660 --> 00:55:27.920
Okay thank you very much.
00:55:27.920 --> 00:55:30.630
Those were very cogent comments.
00:55:30.630 --> 00:55:34.013
Calvin, do you have
anyone else in the queue?
00:55:36.980 --> 00:55:37.813
Yes, sir.
00:55:37.813 --> 00:55:40.720
Our next comment
comes from Miguel Casteel.
00:55:40.720 --> 00:55:41.620
Your line is open.
00:55:43.670 --> 00:55:46.327
Thank you
very much to everybody.
00:55:47.440 --> 00:55:50.500
And thank you for the
opportunity to let me speak.
00:55:50.500 --> 00:55:53.470
I'm not a very good of a speaker,
00:55:53.470 --> 00:55:55.443
but I want to be very simple.
00:55:56.920 --> 00:56:00.443
Before Golden State Company
came to the city of Inglewood,
00:56:02.900 --> 00:56:07.033
I used to pay like $150 for two months.
00:56:08.220 --> 00:56:13.220
When Golden State Water
came into they increase it by 100%.
00:56:15.410 --> 00:56:20.073
Now I pay around $180 but every month.
00:56:20.940 --> 00:56:25.940
So the minute they
came in, they increased
00:56:26.364 --> 00:56:28.793
for a huge amount of money.
00:56:29.920 --> 00:56:32.900
So I think that's very, very unfair.
00:56:32.900 --> 00:56:33.983
That's one thing.
00:56:35.560 --> 00:56:39.350
Then currently I live
on the city of Torrance.
00:56:39.350 --> 00:56:42.460
You know, really that's
a different situation.
00:56:42.460 --> 00:56:45.420
And I can see the city
of Torrance charging
00:56:46.980 --> 00:56:51.980
for every CCF water.
00:56:52.370 --> 00:56:55.323
They charge me $3 and 24 cents.
00:56:56.753 --> 00:57:01.753
Whereas Golden State Water
they charged me $4 and 52 cents
00:57:03.480 --> 00:57:04.713
for every CCF.
00:57:06.860 --> 00:57:11.860
So they are really a dollar
and 30 cents expensive
00:57:13.240 --> 00:57:14.930
and they want more.
00:57:14.930 --> 00:57:15.850
Okay that's one thing.
00:57:15.850 --> 00:57:19.210
The other thing, every
month Golden State Water
00:57:19.210 --> 00:57:24.210
charged me $63 for me using his meter
00:57:25.870 --> 00:57:30.730
versus the city of Torrance
charging me only $14.
00:57:30.730 --> 00:57:34.810
So it's a $50 difference
and they still want more.
00:57:34.810 --> 00:57:37.543
I think it's very, very unfair.
00:57:38.760 --> 00:57:42.170
That's my comment and
that's all I'm going to say.
00:57:42.170 --> 00:57:44.370
Hopefully that I express myself
00:57:44.370 --> 00:57:46.143
and you guys could understand it.
00:57:47.610 --> 00:57:48.500
You did.
00:57:48.500 --> 00:57:51.010
And thank you very
much for that comment.
00:57:51.010 --> 00:57:55.860
And yes, there is a big
difference oftentimes
00:57:55.860 --> 00:57:59.420
in comparing the
different water companies.
00:57:59.420 --> 00:58:02.030
There's no question about that
00:58:02.030 --> 00:58:04.990
but thank you for having said that
00:58:04.990 --> 00:58:07.550
and we'll keep that in mind.
00:58:07.550 --> 00:58:11.223
Calvin, the next person, please.
00:58:12.640 --> 00:58:13.473
Thank you.
00:58:13.473 --> 00:58:16.403
At this time I'm seeing no
further comments at this time.
00:58:18.240 --> 00:58:21.480
Okay. Tell you what we'll do.
00:58:21.480 --> 00:58:24.400
Why don't we take a five-minute break?
00:58:24.400 --> 00:58:27.250
It's 2:35 right now
00:58:27.250 --> 00:58:30.250
and if we take a five-minute
break for everybody
00:58:30.250 --> 00:58:32.160
we'll come back online
00:58:32.160 --> 00:58:36.110
and see if there are
any further comments
00:58:36.110 --> 00:58:37.860
that people would like to make.
00:58:37.860 --> 00:58:39.390
I hope there will be
00:58:39.390 --> 00:58:42.290
because these have
been good comments so far
00:58:42.290 --> 00:58:44.270
and I hope there are more of them.
00:58:44.270 --> 00:58:45.893
So five-minute break.
00:58:45.893 --> 00:58:47.973
We'll start up again at 2:40.
01:01:18.308 --> 01:01:20.891
(lively music)
01:02:08.057 --> 01:02:10.474
(soft music)
01:02:56.850 --> 01:02:57.683
Okay
01:02:59.140 --> 01:03:01.890
All right, let's go back
on the record, please.
01:03:01.890 --> 01:03:06.890
Calvin, do you have any further
speakers on line right now?
01:03:12.442 --> 01:03:15.530
No.
01:03:15.530 --> 01:03:17.180
No further speakers?
01:03:27.330 --> 01:03:29.930
Calvin, did you tell me that
there were no speakers?
01:03:42.890 --> 01:03:45.120
Your honor,
This is Robert Stanford
01:03:45.120 --> 01:03:48.230
and there are no other
speakers at this time.
01:03:48.230 --> 01:03:49.430
Okay.
01:03:49.430 --> 01:03:52.263
All right, Ana, I think then,
01:03:54.520 --> 01:03:56.070
are we on the record right now?
01:03:57.470 --> 01:04:02.470
Okay. Let's wrap up today.
01:04:05.980 --> 01:04:09.610
It would be helpful to us
01:04:09.610 --> 01:04:12.670
if anyone listening has
additional comments
01:04:12.670 --> 01:04:14.803
if you would submit them in writing,
01:04:15.640 --> 01:04:18.580
the comments can go on the docket card
01:04:18.580 --> 01:04:20.253
in the proceeding file.
01:04:21.200 --> 01:04:23.670
You can find that docket card
01:04:23.670 --> 01:04:28.670
by going to www.cpuc.ca.gov/pph
01:04:34.660 --> 01:04:39.467
and look for proceeding A.20-07-012.
01:04:43.090 --> 01:04:45.440
Click on that and you
will see the docket card
01:04:45.440 --> 01:04:46.970
for this proceeding.
01:04:46.970 --> 01:04:49.260
And if you click on
the public comment tab
01:04:49.260 --> 01:04:52.700
you can leave a written comment for us.
01:04:52.700 --> 01:04:55.790
I read those comments every week.
01:04:55.790 --> 01:04:59.320
So please submit a written comment
01:04:59.320 --> 01:05:02.740
so that we can understand
exactly how you feel
01:05:02.740 --> 01:05:05.670
about the proposed rate increases
01:05:05.670 --> 01:05:08.473
that are proposed for this region two.
01:05:09.490 --> 01:05:12.810
Persistent with providing
additional comments,
01:05:12.810 --> 01:05:17.120
you can contact the
Public Advisors Office
01:05:17.120 --> 01:05:21.563
at public.advisor@cpuc.ca.gov.
01:05:27.240 --> 01:05:29.770
With that, we will conclude today's
01:05:29.770 --> 01:05:34.340
Public Participation
Hearing for the afternoon
01:05:34.340 --> 01:05:36.153
and we will now be off the record.