WEBVTT 00:00:00.270 --> 00:00:02.640 Greater, and thank you translator. 00:00:02.640 --> 00:00:05.670 Will the court reporter, please confirm to me 00:00:05.670 --> 00:00:07.023 that she's ready to begin. 00:00:08.275 --> 00:00:10.213 I'm ready, sir, thank you. 00:00:11.070 --> 00:00:12.380 Thank you. 00:00:12.380 --> 00:00:14.400 We will now be on the record. 00:00:14.400 --> 00:00:17.980 The Commission will come to order, it's Thursday evening 00:00:17.980 --> 00:00:22.980 May 27th, 2021 at 6:32 PM. 00:00:23.070 --> 00:00:25.630 And this is a remote public participation hearing 00:00:25.630 --> 00:00:27.820 on the Golden State Water Company's 00:00:27.820 --> 00:00:30.330 General Rate Case application, 00:00:30.330 --> 00:00:35.330 for rates to be charged in years 2022, 2023 and 2024. 00:00:38.810 --> 00:00:41.730 The application number is A20-07-012. 00:00:47.700 --> 00:00:50.240 My name is Charles Ferguson 00:00:50.240 --> 00:00:52.610 and I am the assigned Administrative Law Judge 00:00:52.610 --> 00:00:53.713 for this proceeding. 00:00:54.650 --> 00:00:58.210 Tonight, we're honored to have the assigned Commissioner 00:00:58.210 --> 00:01:01.230 for this proceeding present with us. 00:01:01.230 --> 00:01:03.300 Her name is Darcie Houck, 00:01:03.300 --> 00:01:06.780 and I will turn over the proceedings to her right now 00:01:06.780 --> 00:01:10.253 to make any introductory comments that she prefers to do. 00:01:11.360 --> 00:01:12.393 Commissioner Houck. 00:01:13.500 --> 00:01:16.870 Thank you, Judge Ferguson and good evening everyone. 00:01:16.870 --> 00:01:19.680 As Judge Ferguson stated, my name is Darcie Houck, 00:01:19.680 --> 00:01:22.250 I'm the assigned Commissioner for this proceeding. 00:01:22.250 --> 00:01:24.760 I want to thank all of you for joining us this evening 00:01:24.760 --> 00:01:27.760 to provide your comments in this important proceedings. 00:01:27.760 --> 00:01:30.930 I look forward to hearing from any elected officials 00:01:30.930 --> 00:01:32.910 and customers that are present tonight 00:01:32.910 --> 00:01:34.790 regarding Golden State Water Company's 00:01:34.790 --> 00:01:37.410 General Rate Case application, as you know 00:01:37.410 --> 00:01:40.010 California is facing another severe drought, 00:01:40.010 --> 00:01:42.010 this combined with the ongoing impacts 00:01:42.010 --> 00:01:43.760 of the COVID-19 pandemic, 00:01:43.760 --> 00:01:45.780 highlights the importance of our decisions 00:01:45.780 --> 00:01:47.060 in this proceeding. 00:01:47.060 --> 00:01:49.210 And with that I will turn the hearing back over 00:01:49.210 --> 00:01:52.577 to Judge Ferguson, thank you. 00:01:52.577 --> 00:01:54.223 Thank you Commissioner. 00:01:55.240 --> 00:01:57.590 All right, tonight, we're going to be focused on 00:01:57.590 --> 00:02:00.738 Golden State customers in what is referred to 00:02:00.738 --> 00:02:05.250 as the Golden States Region Three Rate Area. 00:02:05.250 --> 00:02:10.250 your monthly bills indicate in which region you are located. 00:02:11.190 --> 00:02:12.930 If your monthly bill indicates 00:02:12.930 --> 00:02:16.774 that you reside in either Region One or Region Two, 00:02:16.774 --> 00:02:21.300 we held those public participation hearings for your regions 00:02:21.300 --> 00:02:23.953 on Tuesday and Wednesday of this week. 00:02:24.980 --> 00:02:28.130 Tuesday's hearings were devoted to Region Two, 00:02:28.130 --> 00:02:31.623 and Wednesday's hearings were devoted to Region One. 00:02:32.690 --> 00:02:34.310 There's no reason for you to be concerned 00:02:34.310 --> 00:02:36.560 if you were unable to attend. 00:02:36.560 --> 00:02:39.473 You can access recordings of these hearings 00:02:39.473 --> 00:02:44.473 by going to a website by the name of adminmonitor.com 00:02:46.560 --> 00:02:48.680 Let me spell that for you. 00:02:48.680 --> 00:02:53.680 A-D-M-I-N-M-O-N-I-T-O-R.com. 00:02:58.700 --> 00:03:01.996 If you go to that website, and click on the link, 00:03:01.996 --> 00:03:05.503 for the California Public Utilities Commission, 00:03:05.503 --> 00:03:10.503 and scroll down to either May 25 or May 26, 00:03:10.718 --> 00:03:13.475 you can access the hearings. 00:03:13.475 --> 00:03:18.475 If you intended to attend those hearings but weren't able, 00:03:18.870 --> 00:03:22.633 and you wanted to make a comment but haven't been able to, 00:03:23.510 --> 00:03:26.110 then you can still put a comment 00:03:26.110 --> 00:03:29.760 on the formal docket sheet for this proceeding. 00:03:29.760 --> 00:03:31.630 You can submit a written comment 00:03:31.630 --> 00:03:35.080 by going to this part of the Commission's website 00:03:36.240 --> 00:03:40.950 www.cpuc.ca.gov/pph 00:03:50.475 --> 00:03:53.800 And when you get there scroll down to the link 00:03:53.800 --> 00:03:56.453 for proceedings papers. 00:03:57.920 --> 00:04:00.910 That link will take you to the formal docket sheet 00:04:00.910 --> 00:04:04.980 where you can click on the tab; public comments 00:04:04.980 --> 00:04:06.473 and leave your comments. 00:04:08.260 --> 00:04:12.200 If you are a part of Region One or Two, 00:04:12.200 --> 00:04:15.330 you're more than welcome to stay connected to this hearing, 00:04:15.330 --> 00:04:18.200 but understand that today, this evening, 00:04:18.200 --> 00:04:19.990 we are going to be concentrating 00:04:19.990 --> 00:04:24.723 on the proposed rate increases for only Region Three. 00:04:26.890 --> 00:04:29.580 My job as the Administrative Judge 00:04:29.580 --> 00:04:33.260 is to collect comments and suggestions from you today 00:04:33.260 --> 00:04:36.247 and be mindful of them as I assemble the evidence 00:04:36.247 --> 00:04:39.340 on whether or not your rates should change 00:04:39.340 --> 00:04:41.433 for the three years of this rate cycle. 00:04:42.470 --> 00:04:44.370 After assembling the record, 00:04:44.370 --> 00:04:47.483 I will then write my proposed decision and submit it 00:04:47.483 --> 00:04:52.483 to the five CPUC Commissioners for them to vote on it. 00:04:55.320 --> 00:04:57.863 It will take three of the Commissioners, 00:04:59.060 --> 00:05:02.830 for my proposed decision to be accepted 00:05:02.830 --> 00:05:04.573 and become the final decision. 00:05:05.502 --> 00:05:08.032 the Commissioners or any of them 00:05:08.032 --> 00:05:11.460 can provide an alternate decision 00:05:11.460 --> 00:05:14.170 but their ultimate decision will be based on 00:05:14.170 --> 00:05:18.373 exactly the same records that my decision will be based on. 00:05:20.483 --> 00:05:23.330 So the purpose of today's hearing is really 00:05:23.330 --> 00:05:26.490 for us at the Commission to hear from you 00:05:26.490 --> 00:05:30.770 the customers of Golden State Water, about how you feel, 00:05:30.770 --> 00:05:33.240 and what you think about an application 00:05:33.240 --> 00:05:34.973 for an increase in rates. 00:05:35.830 --> 00:05:38.940 To help you formulate your opinions, 00:05:38.940 --> 00:05:41.550 The Commission has prepared fact sheets 00:05:41.550 --> 00:05:44.150 and Golden State has delivered those to you, 00:05:44.150 --> 00:05:47.240 either electroniCally or by email, 00:05:47.240 --> 00:05:51.440 I'm sorry or by US regular mail. 00:05:51.440 --> 00:05:54.060 These fact sheets will help you understand 00:05:54.060 --> 00:05:58.310 exactly how much new revenue Golden State is requesting 00:05:58.310 --> 00:06:00.070 in the aggregate from you 00:06:00.070 --> 00:06:03.070 and all the other customers in Region Three. 00:06:03.070 --> 00:06:05.390 And they'll help you figure out what it is, 00:06:05.390 --> 00:06:08.720 that your future bills might look like. 00:06:08.720 --> 00:06:12.732 If, and only if we at the Commission approve fully 00:06:12.732 --> 00:06:17.033 of the rate, increase requested by Golden State Water. 00:06:18.650 --> 00:06:20.994 That doesn't happen too often 00:06:20.994 --> 00:06:24.300 but it will at least give you a chance 00:06:24.300 --> 00:06:27.560 to see what the worst case scenario would be for you, 00:06:27.560 --> 00:06:31.140 if we did approve of everything 00:06:31.140 --> 00:06:33.533 that the utility is asking for. 00:06:35.380 --> 00:06:40.380 If by any chance you do not have your fact sheet, 00:06:40.500 --> 00:06:43.140 because you didn't receive it or you received it 00:06:43.140 --> 00:06:46.740 and misplaced it, you can still get a copy 00:06:46.740 --> 00:06:51.490 from the CPUC's website, go to our website 00:06:51.490 --> 00:06:56.490 at www.cpuc.ca.gov. 00:06:57.300 --> 00:07:00.640 Enter the words public advisor. 00:07:00.640 --> 00:07:05.453 That's A-D-V-I-S-O-R in the search bar, 00:07:06.471 --> 00:07:10.840 and when you get to that particular part of our website, 00:07:12.986 --> 00:07:17.690 you'll find a link for public participation hearings. 00:07:17.690 --> 00:07:19.750 Click on that link and scroll 00:07:19.750 --> 00:07:22.820 to the Golden State Water Company Rate Proceeding, 00:07:22.820 --> 00:07:25.680 and you will find the CPUC's fact sheets 00:07:25.680 --> 00:07:28.763 for all three regions of the Golden State System. 00:07:31.320 --> 00:07:34.700 You can also obtain a fact sheet for your rate area 00:07:34.700 --> 00:07:38.840 from Golden State itself by addressing an email requests 00:07:38.840 --> 00:07:42.123 to 2022grc@gswater.com, 00:07:47.560 --> 00:07:49.513 including your billing address. 00:07:51.060 --> 00:07:54.270 I'm sorry, include your billing address in your email 00:07:54.270 --> 00:07:57.580 so that the proper fact sheet can be sent to you. 00:07:57.580 --> 00:08:00.900 Finally, if you don't have any internet access, 00:08:00.900 --> 00:08:04.070 and you're participating entirely by telephone, 00:08:04.070 --> 00:08:05.987 you can still get a copy of the fact sheet 00:08:05.987 --> 00:08:10.500 for your specific rate area by Calling Golden State Water 00:08:10.500 --> 00:08:14.470 at the following number (877) 288-8816. 00:08:18.820 --> 00:08:20.900 Let me repeat that one more time. 00:08:20.900 --> 00:08:22.920 Their telephone number to call 00:08:22.920 --> 00:08:24.920 for this particular proceeding 00:08:24.920 --> 00:08:29.920 and to get a fact sheet is (877) 288-8816. 00:08:36.210 --> 00:08:38.480 This is the way you can use the fact sheets 00:08:38.480 --> 00:08:41.330 to project what your rates would be. 00:08:41.330 --> 00:08:43.580 If, and only if we approved 00:08:43.580 --> 00:08:48.050 of all of what Golden State Water is asking for. 00:08:48.050 --> 00:08:52.050 You need to collect all of your old bills from 2020, 00:08:52.050 --> 00:08:55.970 all of the 12 months of 2020. 00:08:55.970 --> 00:08:58.950 Those bills will tell you how much water you used 00:08:58.950 --> 00:09:02.263 in each month during the Calendar year 2020. 00:09:03.260 --> 00:09:07.724 Using those precise amounts and our fact sheet, 00:09:07.724 --> 00:09:11.680 you can project what it would cost you 00:09:11.680 --> 00:09:14.700 to use exactly the same amount of water 00:09:14.700 --> 00:09:19.353 in each month of 2022, 2023 and 2024. 00:09:22.974 --> 00:09:25.350 You need to make a separate calculation 00:09:25.350 --> 00:09:27.023 for each individual month. 00:09:29.011 --> 00:09:32.982 You'll begin each month with the fixed service charge. 00:09:32.982 --> 00:09:35.870 You can find this on the fact sheet, 00:09:35.870 --> 00:09:38.763 on the first chart that you see on the fact sheet, 00:09:39.960 --> 00:09:43.800 and the fixed service charge is independent 00:09:43.800 --> 00:09:46.940 of how much water you'd actually use, 00:09:46.940 --> 00:09:49.670 whether you use no water or lots of water, 00:09:49.670 --> 00:09:52.780 the monthly service charge is I'm sorry. 00:09:52.780 --> 00:09:57.510 The monthly service charge is a once a month fixed charge 00:09:57.510 --> 00:09:58.903 that you have to pay. 00:09:59.850 --> 00:10:03.260 You need to add to that your usage charge 00:10:03.260 --> 00:10:05.490 for the amount of water you used, 00:10:05.490 --> 00:10:09.860 and in the same month that you're Calculating in 2020. 00:10:09.860 --> 00:10:13.330 Usage charges are expressed in hundreds of cubic feet. 00:10:13.330 --> 00:10:16.480 100 cubic feet of water or one CCF 00:10:16.480 --> 00:10:20.173 is equal to 748 gallons of water. 00:10:21.200 --> 00:10:23.860 Use the column on the chart that says 00:10:23.860 --> 00:10:28.860 effective January 1, 2022 to project your usage charge 00:10:29.490 --> 00:10:31.763 for January, 2022. 00:10:32.780 --> 00:10:36.880 The Proposed Rate Structure for all of 2022 and 2024 00:10:36.880 --> 00:10:39.540 is shown on page two of the fact sheet. 00:10:39.540 --> 00:10:41.660 So you can make the same calculations 00:10:41.660 --> 00:10:44.693 for each of the next two years of the rate cycle. 00:10:45.960 --> 00:10:49.077 Throughout the whole three years, the cheapest water 00:10:49.077 --> 00:10:54.077 for your region is the first 13 CCFs that you use. 00:10:56.700 --> 00:11:01.370 At least that's as presently proposed by Golden State Water, 00:11:01.370 --> 00:11:06.170 and it will be what your first year is comprised of, 00:11:06.170 --> 00:11:09.283 if the Commission proves of it in the final decision. 00:11:10.170 --> 00:11:14.810 The price increases for water after the next, 00:11:14.810 --> 00:11:18.490 after the first 13 and continues 00:11:18.490 --> 00:11:22.713 for the next 31 CCFs of water in your region. 00:11:23.710 --> 00:11:28.360 And it gets to be priced even higher for water consumption, 00:11:28.360 --> 00:11:29.513 beyond that point. 00:11:30.940 --> 00:11:32.800 Remember to add the usage charge 00:11:32.800 --> 00:11:35.870 and the fixed service charge together to get a projection 00:11:35.870 --> 00:11:39.313 of what you may have to pay in January of 2022. 00:11:40.250 --> 00:11:43.729 If you make these Calculations for each individual month, 00:11:43.729 --> 00:11:48.210 you can compare what you would have to pay for water 00:11:48.210 --> 00:11:50.830 in 2022, if the CPUC grants 00:11:50.830 --> 00:11:53.550 all of Golden State's proposed rate increases 00:11:53.550 --> 00:11:54.423 for your region. 00:11:56.630 --> 00:11:57.960 Now, having said that, 00:11:57.960 --> 00:12:02.580 there is a way to avoid paying for the new rate increase 00:12:02.580 --> 00:12:05.410 and that is to trim your water usage in those months 00:12:05.410 --> 00:12:07.503 when you typiCally use the most water. 00:12:09.110 --> 00:12:12.220 The Commission has provided to you in the fact sheets, 00:12:12.220 --> 00:12:14.540 a graph on page three, 00:12:14.540 --> 00:12:17.560 that shows you how your particular water consumption 00:12:17.560 --> 00:12:20.853 compares to all the customers in Region Three. 00:12:21.726 --> 00:12:25.730 On average, taking into account all 12 months of the year 00:12:25.730 --> 00:12:29.300 an average customer in Region Three, 00:12:29.300 --> 00:12:33.456 uses about 12 CCFs of water. 00:12:33.456 --> 00:12:37.130 That's right near the top of the lowest costs here 00:12:37.130 --> 00:12:39.023 as proposed by Golden State. 00:12:40.350 --> 00:12:43.510 I find it somewhat impressive that the average customer 00:12:43.510 --> 00:12:47.513 in your region stays within the first proposed rates here. 00:12:48.580 --> 00:12:50.460 However, if you're using more 00:12:50.460 --> 00:12:53.210 than the average customer uses in a month, 00:12:53.210 --> 00:12:56.500 then perhaps you should consider reducing your water usage, 00:12:56.500 --> 00:12:58.903 even though you can afford a rate increase. 00:13:00.010 --> 00:13:01.810 And if you're looking for a way of avoiding 00:13:01.810 --> 00:13:04.000 the rate increase altogether, 00:13:04.000 --> 00:13:05.760 perhaps you should make calculations 00:13:05.760 --> 00:13:10.760 based on cutting your water usage by 10, 15 or 20% 00:13:11.220 --> 00:13:15.123 in the year 2022, as compared to 2020. 00:13:16.451 --> 00:13:20.471 If you use the fact sheet and Calculate what you would pay 00:13:20.471 --> 00:13:23.670 after those kinds of savings, you may find 00:13:23.670 --> 00:13:27.983 that you are impervious to the actual rate increase. 00:13:29.240 --> 00:13:30.489 Once you've finished your projections 00:13:30.489 --> 00:13:32.410 you can let us know what you think 00:13:32.410 --> 00:13:35.020 about the proposed rate increase. 00:13:35.020 --> 00:13:36.160 Some of you may conclude 00:13:36.160 --> 00:13:38.010 that you can reduce your water usage 00:13:38.010 --> 00:13:40.650 by enough to avoid any change in the amount of money 00:13:40.650 --> 00:13:42.470 you pay for water. 00:13:42.470 --> 00:13:44.260 In that case, you may feel comfortable 00:13:44.260 --> 00:13:47.230 about the rates increasing in order to pay for improvements 00:13:47.230 --> 00:13:49.073 in water quality or service. 00:13:49.990 --> 00:13:52.560 Others will be disturbed by how difficult it is 00:13:52.560 --> 00:13:54.490 to cut their water usage 00:13:54.490 --> 00:13:57.800 and will be opposed to any increases at all. 00:13:57.800 --> 00:13:59.950 The fact of the matter is, we at the Commission 00:13:59.950 --> 00:14:01.893 want to hear from all of you, 00:14:02.950 --> 00:14:07.233 regardless of how you feel about cutting your water usage. 00:14:09.730 --> 00:14:13.225 I'm going to leave it to the representatives 00:14:13.225 --> 00:14:17.730 of the Golden State Water Company, and the Public Advocates, 00:14:17.730 --> 00:14:20.680 which are the portion 00:14:20.680 --> 00:14:23.250 of the California Public Utilities Commission, 00:14:23.250 --> 00:14:27.260 which represents the interests of ratepayers like you, 00:14:27.260 --> 00:14:31.430 to describe to you their views on whether or not 00:14:31.430 --> 00:14:36.290 the expenses that are offered by Golden State Water, 00:14:36.290 --> 00:14:39.110 as the reason for increasing rates, 00:14:39.110 --> 00:14:44.110 asking for increased rates are acceptable or not acceptable, 00:14:45.630 --> 00:14:48.380 and you will hear different opinions from both of them. 00:14:49.910 --> 00:14:53.543 But first, let me just go over a few descriptions 00:14:55.010 --> 00:14:58.367 about the Commission itself. 00:15:02.140 --> 00:15:04.260 It's comprised of five Commissioners 00:15:04.260 --> 00:15:05.870 who are appointed by the Governor 00:15:05.870 --> 00:15:08.103 and confirmed by the California Senate. 00:15:10.270 --> 00:15:13.260 As I said before, I manage the day-to-day activities 00:15:13.260 --> 00:15:16.730 of the case, and then gather all the evidence together 00:15:16.730 --> 00:15:18.323 and write a proposed decision. 00:15:19.482 --> 00:15:21.220 The proposed decision is then considered 00:15:21.220 --> 00:15:24.410 by all five Commissioners, and they will either decide 00:15:24.410 --> 00:15:26.690 to adopt my proposed decision, 00:15:26.690 --> 00:15:29.163 or adopt their own alternate decision. 00:15:30.120 --> 00:15:32.150 The current schedule for this proceeding, 00:15:32.150 --> 00:15:35.030 indicates that the Commission may be able to vote 00:15:35.030 --> 00:15:37.510 on a decision by the end of this year, 00:15:37.510 --> 00:15:39.793 or certainly in 2022. 00:15:41.420 --> 00:15:45.960 Comments from the public, like those of you listening today 00:15:45.960 --> 00:15:49.190 help us reach an informed decision. 00:15:49.190 --> 00:15:51.743 The Commissioners and I will pay close attention 00:15:51.743 --> 00:15:54.350 to the opinions you express 00:15:54.350 --> 00:15:56.663 in this public participation hearing. 00:15:57.950 --> 00:16:01.170 A Court Reporter will describe, 00:16:01.170 --> 00:16:04.520 will transcribe everything that you say today. 00:16:04.520 --> 00:16:08.240 So when you do speak, I ask you to speak slowly and clearly, 00:16:08.240 --> 00:16:10.783 so that she can capture everything that you say. 00:16:11.640 --> 00:16:13.840 A written transcript of today's hearing 00:16:13.840 --> 00:16:18.840 will be posted on our docket card for this proceeding. 00:16:19.210 --> 00:16:23.217 You can also access the recording of our proceeding 00:16:23.217 --> 00:16:27.488 this evening at the same website I mentioned before 00:16:27.488 --> 00:16:30.153 adminmonitor.com. 00:16:33.130 --> 00:16:35.340 And in addition there are other ways 00:16:35.340 --> 00:16:38.650 that you can provide public comments. 00:16:38.650 --> 00:16:41.930 I will tell you that I personally wait until Fridays, 00:16:41.930 --> 00:16:44.290 and then I get all of the comments 00:16:44.290 --> 00:16:47.600 that have come into the Commission during the week, 00:16:47.600 --> 00:16:49.940 and I spend a part of every Friday, 00:16:49.940 --> 00:16:54.483 reading through those comments and to explain to you 00:16:54.483 --> 00:16:59.483 better than I can do it, how to get your comments 00:17:00.499 --> 00:17:05.499 into my hands and into the docket sheet, 00:17:05.500 --> 00:17:07.278 I'm going to invite a representative 00:17:07.278 --> 00:17:12.241 of the Public Advisors Office at the Commission 00:17:12.241 --> 00:17:14.150 to speak to you now. 00:17:14.150 --> 00:17:16.218 So Ms. Brown, if you're ready, 00:17:16.218 --> 00:17:19.763 would you please take over from here? 00:17:21.720 --> 00:17:23.160 Yes, thank you, Judge. 00:17:23.160 --> 00:17:25.210 Good evening and welcome everyone. 00:17:25.210 --> 00:17:26.380 My name is Allison Brown 00:17:26.380 --> 00:17:29.120 and I'm the Commission's Public Advisor. 00:17:29.120 --> 00:17:30.290 The Public Advisor's Office, 00:17:30.290 --> 00:17:31.860 assists and advises the public 00:17:31.860 --> 00:17:34.540 with participation and Commission proceedings. 00:17:34.540 --> 00:17:37.040 We are here as a resource for you. 00:17:37.040 --> 00:17:39.700 First, I want to thank you all for joining us today. 00:17:39.700 --> 00:17:41.690 As the Judge and the Commissioner stated, 00:17:41.690 --> 00:17:44.040 public participation and input are essential 00:17:44.040 --> 00:17:46.240 to the Commission's decision-making process. 00:17:47.190 --> 00:17:48.790 This is your opportunity to be heard 00:17:48.790 --> 00:17:50.950 and to share your thoughts on the application, 00:17:50.950 --> 00:17:52.240 with the Administrative Law Judge 00:17:52.240 --> 00:17:54.210 and the assigned Commissioner. 00:17:54.210 --> 00:17:56.540 If you have specific questions about your application 00:17:56.540 --> 00:17:59.480 or your service, this application, or your service 00:17:59.480 --> 00:18:02.010 please reach out to the Public Advisor's Office. 00:18:02.010 --> 00:18:07.010 Our email address is public.advisor@cpuc.ca.gov 00:18:08.550 --> 00:18:10.410 or you can Call the Public Advisor's Office 00:18:10.410 --> 00:18:13.633 at 1-866-849-8390. 00:18:16.090 --> 00:18:17.990 You can also visit the CPUC 00:18:17.990 --> 00:18:20.463 or Golden State's websites for more information. 00:18:21.630 --> 00:18:23.040 Again, if you, or anyone, you know 00:18:23.040 --> 00:18:26.190 is not able to make a comment today, as the Judge said 00:18:26.190 --> 00:18:28.700 there are several other ways to become involved. 00:18:28.700 --> 00:18:31.620 If you wish to find more information on becoming a party 00:18:31.620 --> 00:18:34.620 subscribing to this proceeding or submitting comments 00:18:34.620 --> 00:18:38.690 via the docket card or email please go to our website, 00:18:38.690 --> 00:18:43.000 www.cpuc.ca.gov, 00:18:43.000 --> 00:18:45.600 or you can directly email the Public Advisor. 00:18:45.600 --> 00:18:50.600 Again, that address is public.advisor@cpuc.ca.gov. 00:18:52.560 --> 00:18:54.570 Thank you again for joining us today. 00:18:54.570 --> 00:18:55.930 All of the information I stated 00:18:55.930 --> 00:18:58.630 is available on the notice you received for this hearing 00:18:58.630 --> 00:19:01.010 or if you're watching this or seeing the stream, 00:19:01.010 --> 00:19:03.000 they're available on the screen as well. 00:19:03.000 --> 00:19:04.450 We look forward to your comments today. 00:19:04.450 --> 00:19:05.283 Thank you again. 00:19:07.920 --> 00:19:10.530 Thank you, Ms. Brown. All right. 00:19:10.530 --> 00:19:14.050 Now we come to an important part of this proceeding. 00:19:14.050 --> 00:19:18.245 Later this summer, I will conduct an evidentiary hearing 00:19:18.245 --> 00:19:21.210 and representatives of Golden State Water 00:19:21.210 --> 00:19:24.350 and representatives of the Public Advocates Office, 00:19:24.350 --> 00:19:26.486 which is your representative, 00:19:26.486 --> 00:19:31.486 will present all of their evidence, their witnesses, 00:19:31.940 --> 00:19:34.728 their written arguments their legal arguments, 00:19:34.728 --> 00:19:37.759 and I will then make a decision 00:19:37.759 --> 00:19:40.770 after listening to both of them. 00:19:40.770 --> 00:19:43.720 But tonight you're going to get a quick preview 00:19:43.720 --> 00:19:46.260 of what they are going to say 00:19:46.260 --> 00:19:48.683 with respect to the rates in your region, 00:19:49.540 --> 00:19:52.830 come later this summer in the evidentiary hearing. 00:19:52.830 --> 00:19:55.120 So I'm going to invite Mr. Switzer 00:19:55.120 --> 00:19:58.480 from Golden State Water to begin by telling us 00:19:58.480 --> 00:20:01.893 about Golden State Water's position. 00:20:05.420 --> 00:20:09.350 Okay, thank you, Judge Ferguson and good evening. 00:20:09.350 --> 00:20:10.853 Thank you, Commissioner Houck. 00:20:13.460 --> 00:20:15.060 Good evening everyone. 00:20:15.060 --> 00:20:17.490 My name is Keith Switzer. 00:20:17.490 --> 00:20:20.040 I work for Golden State Water Company. 00:20:20.040 --> 00:20:23.120 I am the Vice-President of the company responsible 00:20:23.120 --> 00:20:26.483 for managing the Regulatory Affairs Department. 00:20:27.511 --> 00:20:29.720 My department is responsible 00:20:29.720 --> 00:20:32.660 for filing the General Rate Case application 00:20:32.660 --> 00:20:36.053 which is the subject of this public participation hearing. 00:20:36.988 --> 00:20:39.880 I want to welcome you all to this virtual hearing, 00:20:39.880 --> 00:20:42.400 and thank you, thank all of our customers, 00:20:42.400 --> 00:20:45.227 who've taken the time to join us this evening. 00:20:45.227 --> 00:20:47.363 We look forward to hearing from you. 00:20:48.290 --> 00:20:51.530 You've just heard Judge Ferguson provide an general overview 00:20:51.530 --> 00:20:54.020 of Golden State Water's application 00:20:54.020 --> 00:20:57.370 and the purpose of tonight's meeting 00:20:57.370 --> 00:21:00.719 and the Commission's decision decision-making process. 00:21:00.719 --> 00:21:02.680 I'm going to take just a few minutes 00:21:02.680 --> 00:21:05.563 to expand on some of Judge Ferguson's comment. 00:21:06.995 --> 00:21:09.230 The General Rate case is the process 00:21:09.230 --> 00:21:12.410 that establishes the company's overall budget 00:21:12.410 --> 00:21:14.200 or what we more commonly referred to 00:21:14.200 --> 00:21:18.550 as our revenue requirement to operate the water system 00:21:18.550 --> 00:21:21.310 in a manner that will allow us to provide 00:21:21.310 --> 00:21:23.713 safe and reliable water service. 00:21:23.713 --> 00:21:26.730 The Rate Case also establishes the rates 00:21:26.730 --> 00:21:29.550 that we charge for water service. 00:21:29.550 --> 00:21:33.820 Rates are set at a level that will generate the budget 00:21:33.820 --> 00:21:36.410 or revenue requirement approved in the Rate Case, 00:21:36.410 --> 00:21:41.200 by the Commission at the forecasted levels of water usage 00:21:41.200 --> 00:21:42.423 from the decision. 00:21:43.400 --> 00:21:45.170 The General Rate Case process 00:21:45.170 --> 00:21:47.770 is intended to be an open process 00:21:47.770 --> 00:21:50.330 where input from different parties 00:21:50.330 --> 00:21:52.750 is welcomed and encouraged. 00:21:52.750 --> 00:21:55.440 Your participation here this evening 00:21:55.440 --> 00:21:59.050 is an important part of that process. 00:21:59.050 --> 00:22:03.020 As customers of Golden State Water, you received notice 00:22:03.020 --> 00:22:05.968 that Golden State filed its rate case application 00:22:05.968 --> 00:22:08.756 in July of 2020. 00:22:08.756 --> 00:22:11.968 The Commission's final decision on our application 00:22:11.968 --> 00:22:14.497 will set our revenue requirements 00:22:14.497 --> 00:22:19.210 and the corresponding rates for a three-year period, 00:22:19.210 --> 00:22:24.210 calendar years, 2022, 2023 and 2024. 00:22:26.500 --> 00:22:29.830 A quick word about the timing of our application. 00:22:29.830 --> 00:22:32.977 Golden State is obligated by law to file 00:22:32.977 --> 00:22:37.163 a General Rate Case application, once every three years. 00:22:37.163 --> 00:22:39.420 The Commission has a preset schedule 00:22:39.420 --> 00:22:42.193 that establishes the date for our filing. 00:22:43.090 --> 00:22:45.830 The Commissions filing schedule enables the Commission 00:22:45.830 --> 00:22:50.274 to process a General Rate Case once every three years 00:22:50.274 --> 00:22:54.630 for all nine of the large class-A water utilities 00:22:54.630 --> 00:22:56.300 in the state. 00:22:56.300 --> 00:22:59.760 it's a tight schedule, essentially processing 00:22:59.760 --> 00:23:02.480 three rate cases every year, 00:23:02.480 --> 00:23:06.920 which is why the timing of each application is mandated 00:23:06.920 --> 00:23:09.710 enabling the Commission to manage the workload, 00:23:09.710 --> 00:23:12.023 and the processing of all these cases. 00:23:13.220 --> 00:23:16.310 For Golden State Water, our last rate case application 00:23:16.310 --> 00:23:19.790 was filed in July of 2017 00:23:19.790 --> 00:23:22.230 and the Commission's decision established the rates 00:23:22.230 --> 00:23:27.230 for Calendar years, 2019, 2020 and 2021. 00:23:29.540 --> 00:23:32.910 The filing of the rate case application in July of last year 00:23:32.910 --> 00:23:34.752 was just the first step 00:23:34.752 --> 00:23:39.752 in a process that will take at least 18 months to complete. 00:23:40.277 --> 00:23:42.910 Once we file our application, 00:23:42.910 --> 00:23:45.292 the office of Public Advocates will begin on 00:23:45.292 --> 00:23:49.726 about an eight month process of reviewing the application, 00:23:49.726 --> 00:23:52.690 doing discovery on the application, 00:23:52.690 --> 00:23:55.010 and ultimately issuing their own report 00:23:55.010 --> 00:23:58.170 and own set of recommendations to the Commission, 00:23:58.170 --> 00:24:01.493 regarding our 2022 revenue requirement. 00:24:02.710 --> 00:24:06.300 Next steps include settlement negotiations, 00:24:06.300 --> 00:24:09.961 mediation, evidentiary hearings 00:24:09.961 --> 00:24:12.990 and then ultimately Judge Ferguson will issue 00:24:12.990 --> 00:24:15.400 what is Called a proposed decision 00:24:15.400 --> 00:24:17.900 that will address and resolve all the issues 00:24:17.900 --> 00:24:18.850 in the application. 00:24:19.900 --> 00:24:22.771 And then finally the five Commissioners will vote 00:24:22.771 --> 00:24:25.233 and issue a final decision. 00:24:28.970 --> 00:24:31.600 Tonight's hearing is for customers in our Region Three 00:24:31.600 --> 00:24:33.103 rate making area. 00:24:34.280 --> 00:24:38.030 Golden State has requested an increase in Region Three 00:24:38.030 --> 00:24:40.250 in the Region Three annual revenue requirement 00:24:40.250 --> 00:24:44.993 for 2022 of $14.6 million, 00:24:45.940 --> 00:24:47.004 and that's an increase compared 00:24:47.004 --> 00:24:52.004 to the current 2021 annual revenue requirement. 00:24:52.020 --> 00:24:56.752 There will be additional increases in 2023 and 2024 00:24:56.752 --> 00:25:00.653 of 6.9 million and $7.1 million. 00:25:03.260 --> 00:25:05.708 What is the reason behind these increases, 00:25:05.708 --> 00:25:08.760 primarily it's due to the need to invest 00:25:08.760 --> 00:25:11.731 in new infrastructure, things like 00:25:11.731 --> 00:25:16.731 new and replacement pipeline, supply-related projects, 00:25:17.340 --> 00:25:20.430 such as new or replacement wells 00:25:21.360 --> 00:25:23.793 and new facilities to treat our water. 00:25:25.150 --> 00:25:30.150 Golden State Water has proposed approximately $147 million 00:25:30.517 --> 00:25:34.770 of new infrastructure projects for Region Three, 00:25:34.770 --> 00:25:37.183 over the next three years. 00:25:38.440 --> 00:25:41.979 All of those projects are contingent upon approval 00:25:41.979 --> 00:25:46.783 of the Commission is part of their decision in this case. 00:25:47.900 --> 00:25:49.710 And let me elaborate just a little bit 00:25:49.710 --> 00:25:52.720 on the infrastructure projects. 00:25:52.720 --> 00:25:54.270 As we make these investments, 00:25:54.270 --> 00:25:55.976 we do not recover the full cost 00:25:55.976 --> 00:25:58.470 of the investments right away. 00:25:58.470 --> 00:26:00.542 We fund the investments 00:26:00.542 --> 00:26:03.770 with a combination of investor money, 00:26:03.770 --> 00:26:06.140 which is raised through Golden State 00:26:06.140 --> 00:26:11.140 or our parent company AWR issuing stock to investors 00:26:11.150 --> 00:26:12.460 and borrowed money, 00:26:12.460 --> 00:26:15.793 which is raised through the company issuing bonds. 00:26:16.780 --> 00:26:20.300 Once the investments in infrastructure are made, 00:26:20.300 --> 00:26:23.470 the cost of those assets are recovered in rates, 00:26:23.470 --> 00:26:25.890 over an extended period of time. 00:26:27.960 --> 00:26:31.190 Anywhere from five to 40 or more years, 00:26:31.190 --> 00:26:34.212 depending upon the type of asset. 00:26:34.212 --> 00:26:36.760 As those investments are made, 00:26:36.760 --> 00:26:38.650 what gets incorporated into rate, 00:26:38.650 --> 00:26:41.410 is not the full cost of the investment, 00:26:41.410 --> 00:26:43.680 at least not right away 00:26:43.680 --> 00:26:47.480 but rather depreciation of those assets 00:26:47.480 --> 00:26:50.750 which is the way that the company is repaid 00:26:50.750 --> 00:26:54.040 for the investment costs, and that's done over, as I said, 00:26:54.040 --> 00:26:55.950 a prolonged period of time 00:26:55.950 --> 00:26:58.120 and also the carrying costs for the funds 00:26:58.120 --> 00:27:00.500 that are used to finance the investments. 00:27:00.500 --> 00:27:02.930 The interest payments that we must make on the debt, 00:27:02.930 --> 00:27:05.683 and the dividends to investors for their investments. 00:27:07.040 --> 00:27:09.780 In addition to the infrastructure projects 00:27:09.780 --> 00:27:12.920 there are also projected increases in costs 00:27:12.920 --> 00:27:17.030 for purchase water, as a portion of the water supply 00:27:17.030 --> 00:27:20.960 that we provide is purchased from third parties, 00:27:20.960 --> 00:27:24.100 such as agencies of the Metropolitan Water District, 00:27:24.100 --> 00:27:24.993 for example. 00:27:27.010 --> 00:27:29.570 So how does this all translate to the impact 00:27:29.570 --> 00:27:31.570 on a monthly bill? 00:27:31.570 --> 00:27:33.534 The answer to that question will vary 00:27:33.534 --> 00:27:37.010 depending on a number of factors, 00:27:37.010 --> 00:27:39.250 but one of the most important determinants, 00:27:39.250 --> 00:27:41.770 is your monthly water usage. 00:27:41.770 --> 00:27:45.120 Since the majority of most customer bills is attributable 00:27:45.120 --> 00:27:47.223 to the monthly usage charges, 00:27:48.783 --> 00:27:52.170 the monthly bill for Golden State charges 00:27:52.170 --> 00:27:55.543 on a residential customer in Region Three, 00:27:56.490 --> 00:27:59.040 who has a 5/8 inch meter at their home, 00:27:59.040 --> 00:28:01.240 which is the most common, 00:28:01.240 --> 00:28:05.270 and uses 12 CCF a month of water 00:28:05.270 --> 00:28:07.470 which is the average usage amount 00:28:07.470 --> 00:28:10.163 for residential customers in Region Three. 00:28:11.032 --> 00:28:13.700 Under those circumstances, the average bill 00:28:13.700 --> 00:28:18.209 would increase from $65.20 under current rates 00:28:18.209 --> 00:28:23.209 to $72.62 in 2022 00:28:23.320 --> 00:28:27.093 which is an increase of $7.42 a month. 00:28:30.030 --> 00:28:33.260 If you would like to contact Golden State Water directly, 00:28:33.260 --> 00:28:34.880 with a question during tonight's 00:28:34.880 --> 00:28:38.040 public participation hearing, you can do so 00:28:38.040 --> 00:28:41.120 either by phone or by email. 00:28:41.120 --> 00:28:44.260 Golden State Water has set up a special Call-in number 00:28:44.260 --> 00:28:46.600 for customers who would like to speak 00:28:46.600 --> 00:28:51.467 to a company representative about the Rate Case Application. 00:28:51.467 --> 00:28:54.981 That number, which is shown here on this screen 00:28:54.981 --> 00:28:57.457 is 1-877-288-8816. 00:29:04.090 --> 00:29:06.630 Golden State Water employees will be standing by 00:29:06.630 --> 00:29:09.263 at that number to respond to your questions. 00:29:10.503 --> 00:29:13.940 If you prefer to ask your question by email, 00:29:13.940 --> 00:29:16.440 we've also set up a special email address, 00:29:16.440 --> 00:29:17.840 specifiCally for questions 00:29:17.840 --> 00:29:20.680 regarding the rate case application. 00:29:20.680 --> 00:29:24.360 That email which is also shown here on the screen 00:29:24.360 --> 00:29:28.140 is 2022grc@gswater.com 00:29:37.450 --> 00:29:40.300 Before concluding my comments today, 00:29:40.300 --> 00:29:42.515 tonight I'm sorry, I wanted to speak 00:29:42.515 --> 00:29:45.530 to the extraordinary and difficult circumstances 00:29:45.530 --> 00:29:48.001 that we find ourselves in right now. 00:29:48.001 --> 00:29:50.670 I'm very proud, that Golden State Water employees 00:29:50.670 --> 00:29:53.259 have been working hard throughout the pandemic, 00:29:53.259 --> 00:29:55.940 making sure that you, our customers 00:29:55.940 --> 00:29:58.730 have continued to receive uninterrupted 00:29:58.730 --> 00:30:01.793 safe and reliable water service, during this time. 00:30:02.960 --> 00:30:05.650 I also want to share that we recognize 00:30:05.650 --> 00:30:08.120 many of our customers are experiencing financial 00:30:08.120 --> 00:30:11.603 and economic hardships during this pandemic situation. 00:30:12.469 --> 00:30:16.000 Despite the challenges of the COVID-19 pandemic, 00:30:16.000 --> 00:30:18.660 our customer service team has remained available 00:30:18.660 --> 00:30:23.460 throughout 24-7, to help customers answer questions 00:30:23.460 --> 00:30:25.830 and resolve problems. 00:30:25.830 --> 00:30:28.244 Golden State has put in place protections 00:30:28.244 --> 00:30:31.720 to ensure that customers continue to receive 00:30:31.720 --> 00:30:34.083 safe and reliable water service. 00:30:34.960 --> 00:30:39.420 Also included in our rate case is the provision to offer 00:30:39.420 --> 00:30:41.480 a monthly credit on the bill 00:30:41.480 --> 00:30:43.960 to income qualifying customers 00:30:43.960 --> 00:30:47.242 who meet specific income criteria. 00:30:47.242 --> 00:30:50.830 If you go to our website, www.gswater.com, 00:30:55.468 --> 00:30:58.233 you will find a link on the home page 00:30:58.233 --> 00:31:01.724 for Emergency Disaster Relief Program, 00:31:01.724 --> 00:31:06.030 and our Low Income Customer Assistance Program, 00:31:06.030 --> 00:31:09.030 which will describe the various protections and programs 00:31:09.030 --> 00:31:10.393 that are available to you. 00:31:11.746 --> 00:31:15.690 With that, I will close my comments tonight. 00:31:15.690 --> 00:31:17.450 Again, I want to thank all of you 00:31:17.450 --> 00:31:20.080 for taking the time to join this meeting, 00:31:20.080 --> 00:31:22.283 and I look forward to hearing your comments. 00:31:23.140 --> 00:31:26.323 Thank you, Judge Ferguson for allowing me this opportunity. 00:31:27.590 --> 00:31:30.423 And thank you, Mr. Switzer, for your comments. 00:31:31.620 --> 00:31:35.160 I want to before inviting Mr. Chan 00:31:35.160 --> 00:31:39.800 to explain the position of the Public Advocates, 00:31:39.800 --> 00:31:42.740 I do want to clarify for everyone, 00:31:42.740 --> 00:31:45.740 and particularly those who have sharp eyes 00:31:45.740 --> 00:31:50.740 and have been listening closely to what Mr. Switzer said, 00:31:50.810 --> 00:31:55.800 there are two differences between what he said 00:31:55.800 --> 00:31:59.070 and what the Commission put in the fact sheets. 00:31:59.070 --> 00:32:01.760 And I want to make sure that everybody understands 00:32:01.760 --> 00:32:06.268 that nobody neither Golden State Water nor the Commission 00:32:06.268 --> 00:32:09.970 are misstating any of the facts. 00:32:09.970 --> 00:32:13.190 There's a reason, and I'll explain it to you where, 00:32:13.190 --> 00:32:16.489 for both of the differences of between the fact sheet 00:32:16.489 --> 00:32:19.600 and what Mr. Switzer just said. 00:32:19.600 --> 00:32:24.600 He pointed out that there is a request for approval 00:32:24.760 --> 00:32:29.760 of capital investments in the neighborhood of $147 million. 00:32:30.160 --> 00:32:34.226 Whereas on the fact sheet we have listed $45 million 00:32:34.226 --> 00:32:35.963 and some change. 00:32:35.963 --> 00:32:40.963 So the reason that the fact has $45 million, 00:32:41.015 --> 00:32:46.015 it's because we picked out one large capital investment, 00:32:46.455 --> 00:32:49.230 and reported that because we were trying 00:32:49.230 --> 00:32:54.230 to show what the largest drivers might be, 00:32:54.950 --> 00:32:57.120 and we did not make an effort to add up 00:32:57.120 --> 00:33:00.150 all of the capital investments in Region Three 00:33:00.150 --> 00:33:01.830 and put their aggregate number. 00:33:01.830 --> 00:33:05.320 So that's the difference between what's in your fact sheet 00:33:05.320 --> 00:33:08.240 and what Mr. Switzer just referenced. 00:33:08.240 --> 00:33:13.210 Secondly, he referenced a need for increased revenue, 00:33:13.210 --> 00:33:15.370 of 14 million and you'll notice 00:33:15.370 --> 00:33:18.360 that the fact sheet says 19 million. 00:33:18.360 --> 00:33:21.960 And again, it's just it's not a misstatement 00:33:21.960 --> 00:33:24.229 by either either of us. 00:33:24.229 --> 00:33:29.210 The $19 million is a comparison of the revenue requirement 00:33:29.210 --> 00:33:34.210 for your region in 2020 versus 2022. 00:33:34.330 --> 00:33:36.640 Whereas what Mr. Switzer was giving you 00:33:36.640 --> 00:33:38.570 when he said 14 million, 00:33:38.570 --> 00:33:41.360 was the comparison between the revenue requirement 00:33:41.360 --> 00:33:44.972 in your region for this year 2021 00:33:44.972 --> 00:33:49.972 and the first year of the new rates cycle, 2022. 00:33:50.240 --> 00:33:54.160 Again, no, there's no misstatement by either of us. 00:33:54.160 --> 00:33:56.720 It just, we selected different. 00:33:56.720 --> 00:33:59.210 We had different criteria for the information 00:33:59.210 --> 00:34:00.580 that we were giving you. 00:34:00.580 --> 00:34:03.475 Then the criteria that Mr. Switzer chose 00:34:03.475 --> 00:34:06.050 for his comments this evening. 00:34:06.050 --> 00:34:10.590 I will point out in case of the, I just wIll point out 00:34:10.590 --> 00:34:12.733 that on page two of the fact sheet, 00:34:12.733 --> 00:34:16.721 where we talk about the billing rate impact 00:34:16.721 --> 00:34:21.721 of rates in 2022, '23 and '24, 00:34:21.738 --> 00:34:24.978 the example of the average customer, 00:34:24.978 --> 00:34:29.978 both Mr. Switzer and the fact sheet from the Commission 00:34:30.850 --> 00:34:34.620 are right down to the penny, exactly the same. 00:34:34.620 --> 00:34:37.780 The example of the average customer is exactly, 00:34:37.780 --> 00:34:39.250 that we give in the fact sheet, 00:34:39.250 --> 00:34:44.250 is exactly what Mr. Switzer just explained to you himselF. 00:34:44.620 --> 00:34:49.473 So I apologize for all that detail, but we often are 00:34:52.670 --> 00:34:55.600 quizzed about how come the fact sheets 00:34:55.600 --> 00:34:58.760 have different information than what the utility 00:34:58.760 --> 00:35:00.557 is giving to the customers. 00:35:00.557 --> 00:35:04.748 And the answer is because we selected different criteria 00:35:04.748 --> 00:35:06.620 from each other. 00:35:06.620 --> 00:35:10.080 It's not that either side is making a misstatement. 00:35:10.080 --> 00:35:12.097 with that said it is now time 00:35:12.097 --> 00:35:15.260 for you to hear your own representative speak to you 00:35:15.260 --> 00:35:18.230 about what the Public Advocate's Office 00:35:18.230 --> 00:35:21.140 thinks that should happen with respect 00:35:21.140 --> 00:35:24.190 to the proposed rate increases in your region. 00:35:24.190 --> 00:35:26.593 Mr. Chan, it's your opportunity to speak. 00:35:29.270 --> 00:35:33.270 Thank you, Judge Ferguson, members of the public, 00:35:33.270 --> 00:35:35.220 thank you for participating tonight. 00:35:35.220 --> 00:35:37.502 Public participation hearing 00:35:37.502 --> 00:35:41.754 and allowing me the opportunity to speak to you. 00:35:41.754 --> 00:35:45.710 My name is Victor Chan, I'm the Project Manager 00:35:45.710 --> 00:35:49.010 representing the Public Advocate's Office. 00:35:49.010 --> 00:35:53.140 I'll Call it Cal Advocate, in this proceeding. 00:35:53.140 --> 00:35:54.768 I, along with my team, 00:35:54.768 --> 00:35:57.060 are responsible for reviewing 00:35:57.060 --> 00:36:00.260 Golden State Water company's Application, 00:36:00.260 --> 00:36:04.215 and we issue our independent recommendations 00:36:04.215 --> 00:36:07.113 for the Commission to consider. 00:36:07.972 --> 00:36:11.510 Tonight I'm going to provide an overview 00:36:11.510 --> 00:36:13.234 of our role in this proceeding, 00:36:13.234 --> 00:36:16.727 as well as our major recommendations 00:36:16.727 --> 00:36:18.703 you know, for Region Three. 00:36:19.650 --> 00:36:21.230 The Public Advocate's Office 00:36:21.230 --> 00:36:24.250 or Cal Advocates is an independent office 00:36:24.250 --> 00:36:26.995 within the California Public Utilities Commission, 00:36:26.995 --> 00:36:29.990 that represents the interests of rate payers. 00:36:29.990 --> 00:36:32.789 Our statutory mission is to obtain the lowest possible rate 00:36:32.789 --> 00:36:34.258 for service consistence 00:36:34.258 --> 00:36:37.022 with reliable and safe service levels. 00:36:37.022 --> 00:36:40.760 Cal Advocate has been multi-disciplinary step 00:36:40.760 --> 00:36:44.730 with expertise in engineering, economics, accounting 00:36:44.730 --> 00:36:46.100 and finance. 00:36:46.100 --> 00:36:48.700 Cal Advocate's views, do not necessarily reflect those 00:36:48.700 --> 00:36:49.600 of the Commission. 00:36:50.532 --> 00:36:54.750 In February, 2021 Cal Advocate Service testimony 00:36:54.750 --> 00:36:57.020 on Golden State Water Company's General Rate case 00:36:57.020 --> 00:37:00.740 application number 2007-012, 00:37:00.740 --> 00:37:02.650 in which Golden State Water company request 00:37:02.650 --> 00:37:04.250 rate increase for its regions; 00:37:04.250 --> 00:37:06.663 One, two, and three service areas. 00:37:07.570 --> 00:37:10.010 Cal Advocates' testimony, presents analysis 00:37:10.010 --> 00:37:12.770 and recommendations on a wide range of issues, 00:37:12.770 --> 00:37:16.670 including capital investment, sales, rate design, 00:37:16.670 --> 00:37:20.233 conservation, operating expenses and taxes. 00:37:21.510 --> 00:37:23.580 Compared to Golden State Water Company's request 00:37:23.580 --> 00:37:28.090 14.51% increase for its Region Three service area 00:37:28.090 --> 00:37:30.770 in the year 2022. 00:37:30.770 --> 00:37:35.770 Cal Advocates recommends no more than a 4.09% increase 00:37:36.160 --> 00:37:38.333 in revenue and average system rates. 00:37:39.440 --> 00:37:41.767 And the following of the major recommendation 00:37:41.767 --> 00:37:45.510 that we provided in our testimony; 00:37:45.510 --> 00:37:48.740 first; authorize and finding for a more modern 00:37:48.740 --> 00:37:50.477 pipeline re-pipement program. 00:37:50.477 --> 00:37:53.950 Second; reduce Golden State Water Company's 00:37:53.950 --> 00:37:58.231 proposed salary increase, and request for new positions. 00:37:58.231 --> 00:38:02.780 Third; decreased expenses and capital investments 00:38:02.780 --> 00:38:05.725 from Golden State Water Company's General Office, 00:38:05.725 --> 00:38:08.527 and forth; remove unfinished projects 00:38:08.527 --> 00:38:11.273 that are not providing rate payer benefits. 00:38:12.320 --> 00:38:14.720 These four major recommendations, 00:38:14.720 --> 00:38:17.590 along with other recommendations can be found 00:38:17.590 --> 00:38:19.737 in Cal advocates' testimony 00:38:19.737 --> 00:38:23.400 that were served back in February. 00:38:23.400 --> 00:38:25.771 You can go to Cal Advocates website, 00:38:25.771 --> 00:38:30.200 by going to www.publicadvocates.cpuc.ca.gov. 00:38:34.740 --> 00:38:38.020 And look for the link to Cal Advocates Report 00:38:38.020 --> 00:38:42.420 on GSWC 2020 GRC application. 00:38:42.420 --> 00:38:45.263 And with that, this concludes my remarks, 00:38:45.263 --> 00:38:47.763 and I look forward to hearing your comments today. 00:38:49.470 --> 00:38:52.383 Mr. Chan, thank you very much for that presentation. 00:38:53.770 --> 00:38:58.110 And now it is time for us at the Commission 00:38:58.110 --> 00:39:00.977 to hear from you about your feelings 00:39:00.977 --> 00:39:04.810 towards this proposed rate increase. 00:39:04.810 --> 00:39:08.540 And here's how you can make your comment this evening. 00:39:08.540 --> 00:39:13.540 If you wish to speak, press *1 on your telephone 00:39:14.228 --> 00:39:19.228 and the operator will add you to the lineup of speakers. 00:39:19.241 --> 00:39:23.390 There will perhaps be speakers who are English speaking, 00:39:23.390 --> 00:39:26.300 and speakers who are Spanish speaking. 00:39:26.300 --> 00:39:30.506 My intent is to alternate every three speakers, 00:39:30.506 --> 00:39:35.506 between the Spanish speakers and the English speakers. 00:39:37.260 --> 00:39:40.269 I will allow each speaker to have three minutes 00:39:40.269 --> 00:39:44.610 to make their comments, a chime will sound 00:39:44.610 --> 00:39:47.410 at the end of the three minutes, 00:39:47.410 --> 00:39:50.706 and then it'll be time for you to come to an end 00:39:50.706 --> 00:39:54.013 of your comment and let the next person speak. 00:39:54.870 --> 00:39:59.430 When you start speaking, keep in mind 00:39:59.430 --> 00:40:02.010 that you must speak slowly and clearly 00:40:02.010 --> 00:40:04.250 so that the reporter can capture everything 00:40:04.250 --> 00:40:05.890 that you're saying. 00:40:05.890 --> 00:40:10.293 And I want everyone to start out by stating their full name, 00:40:10.293 --> 00:40:14.961 and then spelling it slowly for the court reporter, 00:40:14.961 --> 00:40:19.961 and then tell us what city in Region Three, you reside in. 00:40:21.970 --> 00:40:26.970 And if you speak directly into your phone, it will help, 00:40:28.004 --> 00:40:33.004 and I would avoid having your cell phone on speaker 00:40:34.472 --> 00:40:37.476 because it causes a kind of an echo 00:40:37.476 --> 00:40:39.653 throughout the rest of the system. 00:40:42.160 --> 00:40:47.160 Before I start with the general public, 00:40:49.530 --> 00:40:50.950 let me ask the operator. 00:40:50.950 --> 00:40:54.450 Has anyone identified themselves as being a public official? 00:40:54.450 --> 00:40:57.133 Who wants to make a comment? 00:41:00.490 --> 00:41:03.200 No, sir, not at this time. 00:41:03.200 --> 00:41:04.517 Okay, thank you. 00:41:05.470 --> 00:41:06.303 All right. 00:41:06.303 --> 00:41:09.170 And can you tell me how many people, 00:41:09.170 --> 00:41:12.053 may have already gotten into the lineup? 00:41:13.960 --> 00:41:15.320 I am showing one person 00:41:15.320 --> 00:41:17.663 that has queued up for a comment. 00:41:18.780 --> 00:41:21.510 Okay, well, let's start with that first speaker, 00:41:21.510 --> 00:41:25.290 and maybe that'll encourage others to get in line. 00:41:25.290 --> 00:41:29.093 Why don't you introduce to us the first speaker, please. 00:41:30.290 --> 00:41:33.750 Our first speaker is, from Romualdo Medina. 00:41:33.750 --> 00:41:34.733 Your line is open. 00:41:36.360 --> 00:41:38.980 Mr. Medina, please introduce yourself 00:41:38.980 --> 00:41:41.943 and spell your name and tell us what city you're from. 00:41:44.190 --> 00:41:46.410 Thank you Judge Ferguson. 00:41:46.410 --> 00:41:53.310 My name is Romualdo Medina, R-O-M-U-A-L-D-O 00:41:54.600 --> 00:41:56.993 M-E-D-I-N-A. 00:41:58.015 --> 00:42:02.013 I am the City Manager of the City of Calipatria, 00:42:04.370 --> 00:42:08.563 and I also want to extend my appreciation 00:42:09.760 --> 00:42:14.080 for this public hearing to Judge Ferguson 00:42:14.080 --> 00:42:15.230 and Commissioner Houck. 00:42:17.479 --> 00:42:20.210 I'm here tonight to speak on behalf 00:42:20.210 --> 00:42:24.370 of the city of Calipatria and express the city's opposition 00:42:26.001 --> 00:42:28.430 to the Golden State Water Company's request 00:42:28.430 --> 00:42:31.513 for rate increase Region Three service area, 00:42:32.400 --> 00:42:37.337 application number 20-07-012. 00:42:40.400 --> 00:42:42.633 Am I speaking too fast or am I going okay? 00:42:43.700 --> 00:42:45.700 I think you're going okay. 00:42:45.700 --> 00:42:46.950 Okay. Great. 00:42:49.410 --> 00:42:51.660 The City of Calipatria is located 00:42:51.660 --> 00:42:55.530 within the Golden States Region Three service area. 00:42:55.530 --> 00:42:57.280 According to the Department of Finance, 00:42:57.280 --> 00:43:02.280 Calipatria population is 6,843, 00:43:02.460 --> 00:43:07.253 which is 4.2% less than its population a year ago. 00:43:08.230 --> 00:43:12.050 Calipatria population is dropping at an alarming rate, 00:43:12.050 --> 00:43:15.800 in large part due to the exorbitant water rates 00:43:15.800 --> 00:43:17.143 charged by Golden State. 00:43:18.690 --> 00:43:21.990 At one time, Calipatria was a beautiful town 00:43:21.990 --> 00:43:25.530 with well landscaped homes and lovely parks. 00:43:25.530 --> 00:43:29.450 Now the parks are dirt lots, with dead and dying trees, 00:43:29.450 --> 00:43:32.953 landscape homes are a thing of the past in Calipatria. 00:43:34.001 --> 00:43:38.370 The US Census Bureau, indicates that the median income level 00:43:38.370 --> 00:43:42.499 in Calipatria is just over 35,000 per year. 00:43:42.499 --> 00:43:46.500 And that 32.3% of Calipatria residents, 00:43:46.500 --> 00:43:48.213 are living in poverty. 00:43:49.420 --> 00:43:53.210 The Census Bureau also indicates that the town of Niland, 00:43:53.210 --> 00:43:58.210 Calipatria's closest neighbor, is also in Region Three. 00:43:58.460 --> 00:44:03.460 The medium income level there is 18,685 a year. 00:44:04.755 --> 00:44:08.800 Golden State's request for a 20% increase 00:44:08.800 --> 00:44:12.015 in residential rates over the next three years, 00:44:12.015 --> 00:44:15.230 will cause result in a serious hardship 00:44:15.230 --> 00:44:17.993 for the majority of residents in Calipatria and Niland. 00:44:19.240 --> 00:44:21.930 HistoriCally it is important to note 00:44:21.930 --> 00:44:24.989 that Golden State petitioned the CPUC for permission 00:44:24.989 --> 00:44:27.478 to regionalize its rates in order to avoid 00:44:27.478 --> 00:44:30.120 the city of Calipatria's attempt 00:44:30.120 --> 00:44:33.120 to take over the Golden State's Water System in Calipatria, 00:44:33.120 --> 00:44:34.403 by eminent domain. 00:44:36.180 --> 00:44:40.490 The city had arranged for financing through the USDA, 00:44:40.490 --> 00:44:43.610 that would have allowed the city to obtain the system, 00:44:43.610 --> 00:44:45.933 restore reasonable rates to its residents. 00:44:46.920 --> 00:44:49.300 In response, Golden State petitioned this body 00:44:49.300 --> 00:44:53.053 for permission to regionalize its rates and was approved. 00:44:53.979 --> 00:44:57.220 The result was temporary reduction in rates 00:44:57.220 --> 00:44:59.500 to the city's residents that rendered 00:44:59.500 --> 00:45:02.863 the city's plan to acquire the system, unfeasible. 00:45:03.830 --> 00:45:06.010 The decision to allow Golden State 00:45:06.010 --> 00:45:08.463 of regionalized was unprecedented. 00:45:09.890 --> 00:45:13.330 Now residents in the Calipatria and Niland service area 00:45:13.330 --> 00:45:15.070 will be facing monthly water bills 00:45:15.070 --> 00:45:18.752 that mostly simply will not be able to afford. 00:45:18.752 --> 00:45:21.733 Clearly the decision to allow the regionalization 00:45:21.733 --> 00:45:25.490 of these rates was an injustice 00:45:25.490 --> 00:45:28.543 to the residents of Calipatria and Niland. 00:45:36.680 --> 00:45:38.333 Excuse me, one moment. 00:45:41.680 --> 00:45:44.515 In light of the median income of the residents of Calipatria 00:45:44.515 --> 00:45:49.033 and Niland, the pro's increase is simply unreasonable. 00:45:50.220 --> 00:45:52.270 Additionally, the water usage required 00:45:52.270 --> 00:45:56.700 by a significantly warmer climate reaching 120° 00:45:56.700 --> 00:45:58.560 during the summer months, 00:45:58.560 --> 00:46:01.410 where the Calipatria and Niland rate users 00:46:01.410 --> 00:46:03.650 cannot be Calculated in the same manner 00:46:03.650 --> 00:46:07.310 as other rate users within Region Three. 00:46:07.310 --> 00:46:09.910 By including the Calipatria and Niland service area 00:46:09.910 --> 00:46:14.224 rate payers, water usage into the total tier usage, 00:46:14.224 --> 00:46:18.360 is unfair and inequitable to the climate 00:46:18.360 --> 00:46:19.973 and income levels that we have. 00:46:21.050 --> 00:46:23.880 Many cities across the State of California, 00:46:23.880 --> 00:46:25.723 are asked to raise utility rates. 00:46:27.270 --> 00:46:32.270 I'm sorry, are asked not to raise utility rates, 00:46:32.474 --> 00:46:33.923 I want to correct that. 00:46:34.760 --> 00:46:37.490 Many landlords across the State of California, 00:46:37.490 --> 00:46:40.988 are asked not to increase its rental rates 00:46:40.988 --> 00:46:43.650 especially during this difficult COVID times 00:46:43.650 --> 00:46:45.150 we are currently experiencing. 00:46:46.460 --> 00:46:48.730 Therefore I close with the city of Calipatria 00:46:48.730 --> 00:46:51.900 respectfully requesting that this request 00:46:51.900 --> 00:46:53.728 by Golden State Water Company 00:46:53.728 --> 00:46:57.749 or the rate increase be denied. 00:46:57.749 --> 00:46:58.897 Thank you. 00:47:00.750 --> 00:47:04.013 Thank you for a very coaching statement. 00:47:04.975 --> 00:47:08.997 In response, I just want to let you know 00:47:08.997 --> 00:47:13.650 that when the Commissioner issued her scoping memo, 00:47:13.650 --> 00:47:18.100 with the list of issues that the Commission wants to look at 00:47:19.150 --> 00:47:24.150 consolidation on a larger than typical basis, 00:47:27.770 --> 00:47:29.712 it was something that 00:47:29.712 --> 00:47:33.510 is something that is embedded in the list of issues 00:47:33.510 --> 00:47:37.237 that we need to look at in this proceeding. 00:47:37.237 --> 00:47:42.237 There is a specific consolidation that is being requested 00:47:43.972 --> 00:47:48.972 in Region Two, between two cities and I, you know, 00:47:51.630 --> 00:47:54.360 all I can tell you is that as city manager, 00:47:54.360 --> 00:47:57.010 you might want to consider having a discussion 00:47:57.010 --> 00:48:00.510 with Golden State Water along the same lines 00:48:00.510 --> 00:48:05.120 as to whether or not a kind of typical consolidation 00:48:05.120 --> 00:48:07.713 might work for your city, 00:48:07.713 --> 00:48:11.230 but the Commission itself is looking not only 00:48:11.230 --> 00:48:15.500 at these typical consolidation efforts for rate purposes 00:48:15.500 --> 00:48:18.410 to do just what you're suggesting, 00:48:18.410 --> 00:48:23.410 lower the rates for places, cities, and towns 00:48:23.750 --> 00:48:26.723 where the median income is quite low, 00:48:28.410 --> 00:48:31.870 but we're also looking at something that's even wider, 00:48:31.870 --> 00:48:35.038 a wider spread than just combining two cities 00:48:35.038 --> 00:48:37.700 to affect a change 00:48:37.700 --> 00:48:40.430 in the one that has the lower median income 00:48:40.430 --> 00:48:42.350 in terms of the rates. 00:48:42.350 --> 00:48:45.252 So I think there's a lot that you could talk 00:48:45.252 --> 00:48:47.610 to Golden State about, 00:48:47.610 --> 00:48:50.870 and I highly recommend that you get together with them 00:48:50.870 --> 00:48:53.680 and see whether or not they can help you. 00:48:53.680 --> 00:48:56.640 In addition, of course, they, you heard Mr. Switzer say 00:48:56.640 --> 00:49:00.015 that they have all of these particular programs 00:49:00.015 --> 00:49:03.800 for low income customers, 00:49:03.800 --> 00:49:07.750 and I would expect that the city has already done this 00:49:07.750 --> 00:49:10.610 but just in case they haven't, I think, you know, 00:49:10.610 --> 00:49:15.040 some way of getting the word out to all 6,000 residents 00:49:15.040 --> 00:49:20.040 of your city, might be worth an effort as well. 00:49:21.470 --> 00:49:23.970 So again, let me thank you for your comments, 00:49:23.970 --> 00:49:28.837 and I hope my suggestions might be of some value to you. 00:49:30.640 --> 00:49:32.910 Certainly, I certainly will look into that. 00:49:32.910 --> 00:49:33.743 Thank you. 00:49:34.680 --> 00:49:35.530 You're welcome. 00:49:36.670 --> 00:49:39.513 Operator, is there someone else in the queue? 00:49:40.769 --> 00:49:43.393 Yes sir, we do have one other comment. 00:49:44.254 --> 00:49:46.913 Okay, why don't you introduce that speaker? 00:49:47.760 --> 00:49:50.020 Thank you, Romy Kirchhoff, 00:49:50.020 --> 00:49:51.433 your line is now open. 00:49:53.640 --> 00:49:56.200 Hi there, can everybody hear me? 00:49:56.200 --> 00:49:57.680 Yes, we can. 00:49:57.680 --> 00:49:59.510 Hi, this is Romy kirchhoff. 00:49:59.510 --> 00:50:03.060 It's spelled R-O-M as in Mary Y. 00:50:03.060 --> 00:50:09.783 Kirchhoff is K-I-R-C-H-H-O-F-F, two Hs, two Fs. 00:50:11.610 --> 00:50:13.993 First-time caller, longtime listener, 00:50:15.040 --> 00:50:18.460 very difficult act to follow after the last speaker, 00:50:18.460 --> 00:50:22.233 very eloquent and well noted. 00:50:23.160 --> 00:50:26.930 I am a recent transplant into the Lemon Heights, 00:50:26.930 --> 00:50:31.930 North Tustin neighborhood, and we just moved in January 00:50:32.030 --> 00:50:36.945 from less than five miles down the road in Tustin Proper, 00:50:36.945 --> 00:50:41.945 and I, when we received our first water bill was shocked. 00:50:42.780 --> 00:50:46.860 I almost peed my pants when I caught the first bill, 00:50:46.860 --> 00:50:50.870 because the difference between our previous water bill 00:50:50.870 --> 00:50:53.863 and our current water bill was astronomical. 00:50:54.840 --> 00:50:59.840 None of our other utility bills had switched so drastically 00:50:59.977 --> 00:51:03.650 and it caused me to look into the situation further, 00:51:03.650 --> 00:51:06.764 and I was able to compare the different tier rates 00:51:06.764 --> 00:51:09.670 and noticed that the first and second tier rates 00:51:09.670 --> 00:51:13.550 were over 200% higher under Golden State, 00:51:13.550 --> 00:51:16.991 the third tier rate was over 100% higher 00:51:16.991 --> 00:51:21.030 and it was just, it was shocking. 00:51:21.030 --> 00:51:23.550 And I looked into it a little bit further 00:51:23.550 --> 00:51:26.440 and had learned a little bit more about Golden State 00:51:26.440 --> 00:51:28.580 and the private company that it is 00:51:28.580 --> 00:51:33.350 and the historical disruptions, I guess 00:51:33.350 --> 00:51:34.840 that you could say it caused 00:51:34.840 --> 00:51:37.470 within the various communities that they served. 00:51:37.470 --> 00:51:40.032 And for us, we don't have any other choice 00:51:40.032 --> 00:51:44.570 but Golden State and as a resident here 00:51:44.570 --> 00:51:46.967 and not having the option to be able to pick 00:51:46.967 --> 00:51:50.011 who is providing service for me, 00:51:50.011 --> 00:51:54.710 I am stuck with this and have to deal with it 00:51:54.710 --> 00:51:58.700 and I understand that, and we moved into a new neighborhood. 00:51:58.700 --> 00:52:03.160 Our lot is bigger, so we have more area to take care of 00:52:03.160 --> 00:52:07.657 but in the same hand, we're also in a high fire danger area 00:52:08.600 --> 00:52:13.600 and we cannot afford to just let our brush die. 00:52:14.880 --> 00:52:16.630 I've had the Fire Department out here, 00:52:16.630 --> 00:52:20.560 to try and determine what we can do to make our area, 00:52:20.560 --> 00:52:24.403 both fire safe and water conservative, 00:52:25.526 --> 00:52:29.210 and it just, we don't have the option 00:52:29.210 --> 00:52:32.279 of completely reducing our water consumption. 00:52:32.279 --> 00:52:36.504 And I did officially file a complaint with the CPUC 00:52:36.504 --> 00:52:39.764 and it was addressed by Golden State, 00:52:39.764 --> 00:52:43.240 but unfortunately that doesn't get me anywhere 00:52:43.240 --> 00:52:46.263 because the rates are what the rates are. 00:52:47.468 --> 00:52:51.744 And I just, I wanted to state that I do understand that 00:52:51.744 --> 00:52:55.460 we are using more water, but we have to use more water, 00:52:55.460 --> 00:52:59.610 and if we stop using water, we're in the risk 00:52:59.610 --> 00:53:03.714 when fire season hits us to have bigger problems, 00:53:03.714 --> 00:53:08.483 and I just don't understand why our neighbors 00:53:08.483 --> 00:53:11.502 two blocks to the left and two blocks to the right 00:53:11.502 --> 00:53:14.130 are under a completely different restructure, 00:53:14.130 --> 00:53:16.580 and it was a very eyeopening experience, 00:53:16.580 --> 00:53:21.500 and I appreciate the opportunity to voice my opinion, 00:53:21.500 --> 00:53:24.420 and hopefully it resonates 00:53:24.420 --> 00:53:26.650 with some other residents in the area as well, 00:53:26.650 --> 00:53:30.280 that as a new resident and as a new customer 00:53:30.280 --> 00:53:34.212 to Golden State, it was very disappointing to see that 00:53:34.212 --> 00:53:37.210 the private water company was able to take 00:53:38.750 --> 00:53:41.470 such a different approach to water service 00:53:41.470 --> 00:53:44.403 from other public utilities in the area. 00:53:47.400 --> 00:53:49.710 Well, thank you very much for that comment. 00:53:49.710 --> 00:53:51.580 I have one quick question for you. 00:53:51.580 --> 00:53:56.020 I think I know the answer, but I just want to make sure 00:53:56.020 --> 00:53:59.210 the two neighbors that you consulted with, 00:53:59.210 --> 00:54:03.502 are they receiving water from a different water company? 00:54:03.502 --> 00:54:05.323 Yes. 00:54:05.323 --> 00:54:08.670 But, so I'm just saying my neighbors in, 00:54:08.670 --> 00:54:12.370 that are in my neighborhood are receiving water bills 00:54:12.370 --> 00:54:15.000 that are in line with my water bill. 00:54:15.000 --> 00:54:20.000 So I'm not above the normal usage in my neighborhood, 00:54:20.540 --> 00:54:24.080 I'm definitely above the usage for Zone Three 00:54:24.080 --> 00:54:25.493 as I've learned today. 00:54:26.580 --> 00:54:31.580 But you know, I've got almost half an acre of slope 00:54:32.790 --> 00:54:37.790 and that includes public horse trails and walking trails, 00:54:38.620 --> 00:54:42.748 that are open to residents of all of you know, 00:54:42.748 --> 00:54:46.280 Orange County and LA County to come and enjoy, 00:54:46.280 --> 00:54:49.180 and we try and maintain that 00:54:49.180 --> 00:54:52.990 to be a nice aesthetically appealing place to come 00:54:52.990 --> 00:54:53.989 and get some exercise. 00:54:53.989 --> 00:54:58.330 And so while I'm paying to take care of that, 00:54:58.330 --> 00:55:01.330 not only through my own water bill 00:55:01.330 --> 00:55:04.283 but through my HOA association dues, 00:55:09.482 --> 00:55:13.481 I think that for residents that are less than one mile 00:55:13.481 --> 00:55:17.488 from me to be paying such significantly different rates 00:55:17.488 --> 00:55:22.488 than I am, it just seems very unfair. 00:55:24.012 --> 00:55:26.740 Okay. I understand. 00:55:26.740 --> 00:55:28.133 And thank you very much. 00:55:28.133 --> 00:55:31.603 Your comments were just as eloquent as the prior speaker. 00:55:32.950 --> 00:55:34.520 Thank you. 00:55:34.520 --> 00:55:37.793 All right, so operator, is there another speaker? 00:55:39.746 --> 00:55:42.183 Yes sir, Your Honor, one moment please. 00:55:50.370 --> 00:55:55.363 Our next speaker is Alma Rose Flores. Your line is open. 00:55:56.730 --> 00:55:57.860 Yes. Hello. 00:55:57.860 --> 00:56:00.980 My name is Alma Rose Flores. 00:56:00.980 --> 00:56:03.690 I'm a resident of Claremont, 00:56:03.690 --> 00:56:08.060 and I thank everyone for being on this call. 00:56:08.060 --> 00:56:11.033 I appreciate everything everyone has said. 00:56:12.507 --> 00:56:15.430 Let me interrupt and ask you to spell your name, 00:56:15.430 --> 00:56:18.650 your full name slowly for the court reporter, please. 00:56:18.650 --> 00:56:23.650 It's A-L-M-A R-O-S-E 00:56:24.740 --> 00:56:27.143 F-L-O-R-E-S. 00:56:28.290 --> 00:56:29.123 Thank you. 00:56:34.507 --> 00:56:36.620 You can go ahead now. 00:56:36.620 --> 00:56:39.660 So what I was saying is 00:56:39.660 --> 00:56:44.660 this raising of the price for water 00:56:44.710 --> 00:56:47.853 could not come at a worse time. 00:56:49.650 --> 00:56:54.330 I believe that with everything going on 00:56:54.330 --> 00:56:56.530 it's just bad timing. 00:56:56.530 --> 00:57:01.530 I oppose this for the Claremont residents, 00:57:01.694 --> 00:57:05.890 I believe that Claremont should be responsible 00:57:05.890 --> 00:57:09.880 for finding another source of water. 00:57:09.880 --> 00:57:14.880 They talked about wells, nothing like that has been done. 00:57:15.260 --> 00:57:20.246 You know, we have to stick with you know, water this, 00:57:20.246 --> 00:57:22.210 you know, company. 00:57:22.210 --> 00:57:27.210 And I believe it's unfair to us because we have no choice. 00:57:27.370 --> 00:57:32.370 Now, Golden State Water wanting to do all these changes, 00:57:32.510 --> 00:57:35.840 I understand, but it shouldn't be at our dime. 00:57:35.840 --> 00:57:38.210 Maybe they should be going back to the city 00:57:38.210 --> 00:57:42.510 and asking them to fund this, not the resident. 00:57:42.510 --> 00:57:44.283 We're already paying too much. 00:57:45.580 --> 00:57:49.510 San Dimas, Glendora, they don't pay the kind of money 00:57:49.510 --> 00:57:51.580 that we're paying for water. 00:57:51.580 --> 00:57:53.728 And with these summer months, 00:57:53.728 --> 00:57:57.778 it's been really hot and it's going to get hotter. 00:57:57.778 --> 00:58:02.778 I don't believe that Water State or, you know 00:58:03.261 --> 00:58:06.863 this water company is into our best interest. 00:58:07.800 --> 00:58:10.190 I think that we should be looking elsewhere 00:58:10.190 --> 00:58:15.190 and I blame Claremont for not doing that. 00:58:15.310 --> 00:58:18.801 I don't know what we're paying all these Congress people 00:58:18.801 --> 00:58:22.883 and city council members, they're not doing their job. 00:58:25.350 --> 00:58:27.113 So I am really angry. 00:58:31.235 --> 00:58:36.235 Well, I think that I understand your concern 00:58:37.370 --> 00:58:39.763 about the inaction. 00:58:41.130 --> 00:58:44.400 We at the Commission, unfortunately, can't do anything 00:58:44.400 --> 00:58:47.720 with respect to the officials in Claremont, 00:58:47.720 --> 00:58:50.600 they're beyond our jurisdiction. 00:58:50.600 --> 00:58:55.600 We can only work with respect to the water company, 00:58:56.530 --> 00:59:00.370 and that's what this whole proceeding is all about. 00:59:00.370 --> 00:59:04.690 We will go into detail with the water company 00:59:04.690 --> 00:59:07.580 and with your representative, the Public Advocates 00:59:08.485 --> 00:59:12.850 with respect to what to do in Region Three. 00:59:12.850 --> 00:59:14.820 So that's the best that we can do. 00:59:14.820 --> 00:59:19.623 We control what the ultimate price is to you. 00:59:20.502 --> 00:59:24.970 And that's the only way we can manage the situation 00:59:24.970 --> 00:59:28.010 where there's just one water company available to you. 00:59:28.010 --> 00:59:32.243 There's not any competitive possibility for you right now. 00:59:34.457 --> 00:59:39.457 So that's what we can do, and that's what I pledged to do, 00:59:39.470 --> 00:59:41.630 that's what the Commissioner will do, 00:59:41.630 --> 00:59:45.580 and her four fellow Commissioners, they all, 00:59:45.580 --> 00:59:50.170 all of us will be diving deeply into the reasons why 00:59:50.170 --> 00:59:54.471 and the possible need or not as the case may be, 00:59:54.471 --> 00:59:57.020 for raising the rates in your region. 00:59:57.020 --> 01:00:02.010 So that's the way we try to control and make up for the fact 01:00:02.010 --> 01:00:06.160 that your Representatives have concluded 01:00:06.160 --> 01:00:10.070 that they don't want to open up a municipal water company, 01:00:10.070 --> 01:00:12.890 at least at this point, they've concluded that you can 01:00:12.890 --> 01:00:15.770 of course vote them out and put in another group 01:00:15.770 --> 01:00:18.009 and maybe they would help you. 01:00:18.009 --> 01:00:20.797 But in the meantime, we have a job to do, 01:00:20.797 --> 01:00:24.460 and that is to make sure that the rates in your region 01:00:24.460 --> 01:00:27.690 are controlled so that they're reasonable for people 01:00:27.690 --> 01:00:31.660 like you and all the others in Region Three. 01:00:31.660 --> 01:00:33.770 So thank you for your comment 01:00:33.770 --> 01:00:36.620 I am very dissatisfied, and I believe 01:00:36.620 --> 01:00:41.140 that Golden State Company is not to our best interests. 01:00:41.140 --> 01:00:42.153 I am sorry. 01:00:45.030 --> 01:00:49.200 Oh yeah, we cannot tell them not to do business. 01:00:49.200 --> 01:00:51.990 We can only control their rates 01:00:51.990 --> 01:00:53.730 and that's what this is all about, 01:00:53.730 --> 01:00:54.800 and that's what we're going to try to do. 01:00:54.800 --> 01:00:58.433 Right, and we, the customers are at their mercy. 01:01:00.030 --> 01:01:01.250 Right, yeah. 01:01:01.250 --> 01:01:05.007 We understand that's the nature of the beast, 01:01:05.007 --> 01:01:06.043 so to speak. 01:01:08.730 --> 01:01:13.350 Until your county city council chooses to 01:01:13.350 --> 01:01:16.690 open up a municipal competitor, there's nothing, 01:01:16.690 --> 01:01:20.470 we can't force anybody to open up an alternative, 01:01:20.470 --> 01:01:24.982 we can only regulate the rates that Golden State charges you 01:01:24.982 --> 01:01:26.763 and that's what we're going to do. 01:01:28.130 --> 01:01:29.690 Horrible. 01:01:29.690 --> 01:01:33.183 Yeah. Okay. Is there another speaker? 01:01:35.260 --> 01:01:38.930 I am showing no further comments at this time. 01:01:38.930 --> 01:01:39.763 Okay. 01:01:40.980 --> 01:01:41.813 All right. 01:01:41.813 --> 01:01:46.813 So it is exactly 7:33 right now. 01:01:47.250 --> 01:01:49.160 Let's go off the record please, 01:01:49.160 --> 01:01:53.760 and we will resume, right, before you take us off, 01:01:53.760 --> 01:01:56.170 we will resume in seven minutes. 01:01:56.170 --> 01:01:58.163 Okay, Let's go back on the record. 01:01:59.230 --> 01:02:03.350 It's now 7:40 PM and we're back on the record 01:02:03.350 --> 01:02:07.100 in our public participation hearing 01:02:07.100 --> 01:02:09.523 or Golden State Water's General Rate Case, 01:02:10.740 --> 01:02:12.720 will the operator tell me whether or not 01:02:12.720 --> 01:02:15.783 we have any further speakers in the queue? 01:02:16.981 --> 01:02:18.440 Oh yes, your honor. 01:02:18.440 --> 01:02:21.403 We do a speaker that has queued up. 01:02:22.450 --> 01:02:25.243 Okay, would you please introduce that speaker? 01:02:26.492 --> 01:02:31.004 Yes sir, that speaker is Dana Baldovino, 01:02:31.004 --> 01:02:32.370 your line is open. 01:02:34.080 --> 01:02:35.320 Hi, good evening. 01:02:35.320 --> 01:02:40.320 My name is Cristina, C-R-I-S-T-I-N-A. 01:02:40.870 --> 01:02:45.870 And last name is B as in boy, A-L-D as in David, 01:02:46.860 --> 01:02:49.240 O-V-I-N-O. 01:02:49.240 --> 01:02:51.693 And I live in the city of Covina. 01:02:52.953 --> 01:02:55.269 So I got also that letter saying 01:02:55.269 --> 01:02:58.508 that there's going to be a water increase 01:02:58.508 --> 01:03:03.508 from Golden State Water, and it's already been, 01:03:04.680 --> 01:03:09.680 our water's been increased since we moved here 13 years ago, 01:03:10.410 --> 01:03:13.005 and, you know, during the drought season, 01:03:13.005 --> 01:03:17.410 I know my grass died, my landscape is really ugly now 01:03:17.410 --> 01:03:19.780 because we can't water. 01:03:19.780 --> 01:03:22.030 We have like restrictions, 01:03:22.030 --> 01:03:26.481 and now that it's going to go up higher, 01:03:26.481 --> 01:03:31.080 you know, I don't even barely water my lawn anymore, 01:03:31.080 --> 01:03:34.580 it's like twice a week, and during summer months, 01:03:34.580 --> 01:03:37.523 it's even harder to keep my plants alive, 01:03:38.997 --> 01:03:43.583 and we use appliances that saves water, our washing machine 01:03:45.270 --> 01:03:48.970 really used, so we can save water, 01:03:48.970 --> 01:03:52.474 and with this increase and with a tight budget 01:03:52.474 --> 01:03:56.620 in our household, you know it's just not right 01:03:56.620 --> 01:04:00.540 that every, so, you know every two years 01:04:00.540 --> 01:04:01.933 they increase the water. 01:04:02.830 --> 01:04:07.830 So I don't know, it's just very difficult 01:04:09.000 --> 01:04:10.230 and it's not fair 01:04:10.230 --> 01:04:15.230 that they keep increasing for whatever they want to do, 01:04:15.430 --> 01:04:17.210 infrastructure. 01:04:17.210 --> 01:04:21.390 Then why are the customers are the ones always suffering 01:04:21.390 --> 01:04:26.010 from all this, you know, they want to improve. 01:04:26.010 --> 01:04:28.563 It should be part of their budget already. 01:04:30.090 --> 01:04:31.523 That's just my concern. 01:04:32.767 --> 01:04:34.830 And thank you. 01:04:34.830 --> 01:04:38.220 Okay, well, thank you for your comment, 01:04:38.220 --> 01:04:41.070 and we appreciate that. 01:04:41.070 --> 01:04:45.718 We understand the difficulties and how severe they get 01:04:45.718 --> 01:04:50.530 in a drought, and it's not particularly pleasant, 01:04:50.530 --> 01:04:55.530 so it faced a rate increase during a drought period. 01:04:57.340 --> 01:05:00.950 So we understand that and we're... 01:05:02.216 --> 01:05:04.800 Yeah, please don't increase the water. 01:05:04.800 --> 01:05:05.633 Please 01:05:06.830 --> 01:05:10.330 decline, we don't support this. 01:05:10.330 --> 01:05:13.273 You know, I'm sure the people in my neighborhood 01:05:13.273 --> 01:05:16.240 and every Covina residents are being supplied 01:05:16.240 --> 01:05:19.320 by this water company, you know 01:05:19.320 --> 01:05:21.620 are also thinking of the same thing. 01:05:21.620 --> 01:05:26.620 So we want your support for the customer, you know 01:05:26.670 --> 01:05:31.620 because it's, with the pandemic it's already hard enough, 01:05:31.620 --> 01:05:36.620 and you know, this new height increased for the water, 01:05:38.970 --> 01:05:42.880 that only knows people are leaving California. 01:05:42.880 --> 01:05:44.759 Right, and the Public Advocates 01:05:44.759 --> 01:05:49.110 will represent that viewpoint and present their evidence 01:05:49.110 --> 01:05:52.965 on that viewpoint to me and to the Commission, 01:05:52.965 --> 01:05:56.716 later this summer during the actual evidentiary hearing. 01:05:56.716 --> 01:06:01.150 So you're in good hands with the Public Advocates 01:06:01.150 --> 01:06:03.470 and you're in good hands with me 01:06:03.470 --> 01:06:06.070 and the Commissioners in terms of deciding, 01:06:06.070 --> 01:06:08.810 just exactly what the rate increase should be. 01:06:08.810 --> 01:06:11.510 So thank you for your comments 01:06:11.510 --> 01:06:14.267 and we're going to keep those in mind, thank you. 01:06:14.267 --> 01:06:15.100 Thank you, thank you. 01:06:17.840 --> 01:06:20.580 Operator, are there further speakers in the queue 01:06:22.212 --> 01:06:23.045 No sir, 01:06:23.045 --> 01:06:25.373 I'm showing no further speakers at this time. 01:06:27.710 --> 01:06:31.202 Okay, well, if that's the case 01:06:31.202 --> 01:06:36.202 then I think it has come time for us to conclude this series 01:06:36.860 --> 01:06:39.970 of public participation hearings and to do so, 01:06:39.970 --> 01:06:43.529 I want to offer the Commissioner an opportunity 01:06:43.529 --> 01:06:47.880 to make any last comments that she would like to make. 01:06:47.880 --> 01:06:48.713 Ms. Houck. 01:06:50.860 --> 01:06:52.707 Thank you, Judge Ferguson. 01:06:52.707 --> 01:06:56.690 So this is the sixth and final TPH for this proceeding. 01:06:56.690 --> 01:06:59.470 I want to thank you for your participation and providing us 01:06:59.470 --> 01:07:02.333 with your comments regarding the many issues before us. 01:07:03.310 --> 01:07:05.250 All of the comments are greatly appreciated, 01:07:05.250 --> 01:07:06.850 and as Judge Ferguson stated, 01:07:06.850 --> 01:07:09.370 we will carefully consider those comments 01:07:09.370 --> 01:07:12.130 as well as all of the other additional information 01:07:12.130 --> 01:07:15.460 that's provided to us throughout the proceeding. 01:07:15.460 --> 01:07:17.490 And so with that I want to thank you once more 01:07:17.490 --> 01:07:18.540 and say good evening. 01:07:20.510 --> 01:07:22.440 Thank you, Commissioner. 01:07:22.440 --> 01:07:27.440 All right, one last time for those who are listening, 01:07:27.550 --> 01:07:32.090 if you want to add comments to the proceeding, 01:07:32.090 --> 01:07:34.270 and I mentioned to you before, 01:07:34.270 --> 01:07:37.620 that on Friday afternoons I get all of the comments 01:07:37.620 --> 01:07:41.200 that have come in each week and I read through them. 01:07:41.200 --> 01:07:46.180 So if you would like to put them into the docket sheet, 01:07:46.180 --> 01:07:49.420 I suggest the best simplest way, 01:07:49.420 --> 01:07:54.420 is to follow what's on the screen right next to me right now 01:07:54.610 --> 01:07:59.610 contact the Public Advisor at public.advisor@cpuc.ca.gov, 01:08:05.210 --> 01:08:08.560 or call the Public Advisors office (866) 849-8390 01:08:14.760 --> 01:08:17.770 and they will help you get your comment 01:08:17.770 --> 01:08:20.670 into the docket sheet or help you 01:08:20.670 --> 01:08:23.257 if you want to become a party to the proceeding. 01:08:23.257 --> 01:08:27.490 They will help you get your views 01:08:27.490 --> 01:08:31.950 included in the record of this proceeding. 01:08:31.950 --> 01:08:34.747 So with that, I think we shall conclude 01:08:34.747 --> 01:08:38.741 this will end this evening's public participation hearing 01:08:38.741 --> 01:08:41.600 and we will go off the record now. 01:08:41.600 --> 01:08:43.423 Thank you all very much.