WEBVTT
00:00:04.050 --> 00:00:05.870
The feed for this streaming event
00:00:05.870 --> 00:00:09.780
brought to you by adminmonitor.com will begin momentarily.
00:00:09.780 --> 00:00:11.180
Thank you for your patience.
00:00:19.760 --> 00:00:20.830
Welcome to the California
00:00:20.830 --> 00:00:22.510
Public Utilities Commission.
00:00:22.510 --> 00:00:24.690
This is a remote public participation hearing
00:00:24.690 --> 00:00:26.370
for California Water Service Company's-
00:00:26.370 --> 00:00:28.290
cost of capital case.
00:00:28.290 --> 00:00:31.140
The public hearing is scheduled to start at 6:00 PM today,
00:00:31.140 --> 00:00:33.800
March 16th, 2022.
00:00:33.800 --> 00:00:36.250
The assigned Administrative Law Judge will begin
00:00:36.250 --> 00:00:37.540
the meeting shortly.
00:00:37.540 --> 00:00:39.530
If you wish to participate by making a comment
00:00:39.530 --> 00:00:41.990
during today's hearing, please press *1
00:00:41.990 --> 00:00:43.860
to alert the operator that you wish to speak
00:00:43.860 --> 00:00:45.000
during this meeting.
00:00:45.000 --> 00:00:47.890
Unmute your phone and state your name when prompted.
00:00:47.890 --> 00:00:50.290
You will then be placed into the queue in that order
00:00:50.290 --> 00:00:51.720
that you've called in.
00:00:51.720 --> 00:00:53.140
When it comes time for you to speak,
00:00:53.140 --> 00:00:54.330
I will announce your name
00:00:54.330 --> 00:00:56.080
and then I will open your phone line.
00:00:56.080 --> 00:00:58.780
The Administrative Law Judge will be providing a time limit
00:00:58.780 --> 00:01:00.510
of three minutes for each speaker
00:01:00.510 --> 00:01:02.230
to accommodate all the callers.
00:01:02.230 --> 00:01:05.260
You will hear a chime at the end of your three minutes.
00:01:05.260 --> 00:01:08.260
To withdraw your request, please press *2.
00:01:08.260 --> 00:01:10.240
If you're a public official, and you wish to speak,
00:01:10.240 --> 00:01:12.811
please identify yourself by title and locality
00:01:12.811 --> 00:01:16.350
and let the operator know that you're a public official.
00:01:16.350 --> 00:01:18.070
If you have a question that you want to ask
00:01:18.070 --> 00:01:19.560
California Water Service Company,
00:01:19.560 --> 00:01:21.800
during this public participation hearing,
00:01:21.800 --> 00:01:22.633
you may contact
00:01:22.633 --> 00:01:25.540
any of three senior customer service representatives
00:01:25.540 --> 00:01:28.830
who will be on standby to take customer calls.
00:01:28.830 --> 00:01:31.184
Those three senior customer service representatives
00:01:31.184 --> 00:01:36.184
are: Laura Davis, her number is 650-558-7801.
00:01:38.978 --> 00:01:43.010
Her email is, Ldavis@calwater.com.
00:01:43.010 --> 00:01:47.027
Renee Burton at 559-624-1601
00:01:48.290 --> 00:01:51.780
or email at rburton@calwater.com
00:01:51.780 --> 00:01:56.157
or Wendy Fraser at 661-837-7222
00:01:57.340 --> 00:01:59.300
or email at Wendy...
00:01:59.300 --> 00:02:02.860
Excuse me, wfraser@calwater.com.
00:02:02.860 --> 00:02:05.130
Additionally, California Water Service representative,
00:02:05.130 --> 00:02:10.130
Greg Milleman is also available at 408-367-8498
00:02:11.050 --> 00:02:12.800
to take any other questions.
00:02:12.800 --> 00:02:13.940
California Water Service
00:02:13.940 --> 00:02:17.070
also has customer service representatives available at
00:02:17.070 --> 00:02:20.900
661-837-7222
00:02:20.900 --> 00:02:25.050
or via email at rateshelp@calwater.com
00:02:25.050 --> 00:02:26.350
Your honor, you may begin.
00:02:27.740 --> 00:02:28.840
Thank you, operator.
00:02:30.200 --> 00:02:33.000
Court reporters, please confirm you're both ready to go?
00:02:34.160 --> 00:02:35.710
Yes judge, thank you.
00:02:38.460 --> 00:02:40.540
Okay, we will be on the record
00:02:41.505 --> 00:02:43.830
and the Commission will come to order.
00:02:43.830 --> 00:02:46.790
We'll start this remote public participation hearing
00:02:48.020 --> 00:02:50.350
on March 16th, 2022
00:02:51.260 --> 00:02:53.300
for the California Water Service Company's-
00:02:53.300 --> 00:02:54.623
Cost of Capital case.
00:02:55.990 --> 00:02:58.043
The application number given to the (indistinct)
00:02:58.043 --> 00:03:00.947
by the Commission is A.21-05-002,
00:03:07.000 --> 00:03:09.223
Now I will often refer to California Water Service Company
00:03:09.223 --> 00:03:10.893
as Cal Water.
00:03:10.893 --> 00:03:13.180
(indistinct)
00:03:13.180 --> 00:03:16.003
I'm sorry, I think there's a line unmuted.
00:03:17.750 --> 00:03:19.350
I just wanna be sure 'cause there's some shuffling
00:03:19.350 --> 00:03:20.210
in the background.
00:03:20.210 --> 00:03:21.140
So if we could take a minute
00:03:21.140 --> 00:03:22.873
and just remind folks, please.
00:03:23.870 --> 00:03:25.170
We'll go off the record.
00:03:26.120 --> 00:03:28.010
I remind everyone that is participating,
00:03:28.010 --> 00:03:30.313
please mute your phone while you're not speaking.
00:03:32.323 --> 00:03:33.773
And we're back on the record.
00:03:36.460 --> 00:03:38.070
All documents related to this proceeding
00:03:38.070 --> 00:03:39.720
to be found on the Commission's website
00:03:39.720 --> 00:03:41.830
at the Docket Card in supporting documents
00:03:41.830 --> 00:03:45.213
type of e-file documents for A2105002,
00:03:48.370 --> 00:03:49.973
no periods or dashes in that.
00:03:52.996 --> 00:03:55.530
And I also say that while we had directed parties
00:03:55.530 --> 00:03:56.500
to identify presenters
00:03:56.500 --> 00:03:58.980
for the public participation hearings,
00:03:58.980 --> 00:04:01.350
I've reviewed our timeline processing scope
00:04:01.350 --> 00:04:03.140
and determined, it's more important
00:04:03.140 --> 00:04:05.020
to get to the public comment sooner
00:04:05.020 --> 00:04:08.090
instead of taking a additional time for any presentation
00:04:08.090 --> 00:04:10.460
from the parties who have ample time
00:04:10.460 --> 00:04:13.173
to make their cases before us.
00:04:15.090 --> 00:04:16.890
I note that the audio and visual feed
00:04:16.890 --> 00:04:19.427
of this public participation hearing are being recorded
00:04:19.427 --> 00:04:22.470
and will be accessible on the Commission's website
00:04:22.470 --> 00:04:25.113
for the public to access and watch.
00:04:26.220 --> 00:04:29.028
If you do not wish for your comments to be...
00:04:29.028 --> 00:04:30.825
To not make a statement
00:04:30.825 --> 00:04:33.403
since this hearing is being recorded.
00:04:35.480 --> 00:04:37.610
My name is Robert Haga.
00:04:37.610 --> 00:04:40.170
I am the assigned Administrative Law Judge
00:04:40.170 --> 00:04:41.203
on this proceeding.
00:04:42.040 --> 00:04:45.200
I am joined at this hearing by the assigned Commissioner,
00:04:45.200 --> 00:04:46.033
Darcie Houck.
00:04:47.490 --> 00:04:49.840
The purpose of today's hearing is for the Commission
00:04:49.840 --> 00:04:52.650
to hear from customers and members of the public
00:04:52.650 --> 00:04:56.610
about Cal Water's request to increase its cost of capital,
00:04:56.610 --> 00:05:01.603
which is found in Cal Water's application 2105002.
00:05:03.660 --> 00:05:05.090
As the issues of law in fact,
00:05:05.090 --> 00:05:06.992
presented in this case are closely related
00:05:06.992 --> 00:05:10.140
to those presented in other class A water utility
00:05:10.140 --> 00:05:12.490
cost of capital applications,
00:05:12.490 --> 00:05:15.067
this proceeding is consolidated with applications
00:05:15.067 --> 00:05:19.193
2105001, 2105003 and 2105004.
00:05:25.550 --> 00:05:26.850
Public participation hearing
00:05:26.850 --> 00:05:30.290
specifically for those applications have occurred
00:05:30.290 --> 00:05:32.853
or will occur over the next few days.
00:05:33.990 --> 00:05:36.260
Though any comment made today about those applications
00:05:36.260 --> 00:05:38.700
will be noted in the consolidated consideration
00:05:38.700 --> 00:05:40.723
of the applications and vice versa.
00:05:43.212 --> 00:05:45.515
I also wanted to take a moment to note that this is not
00:05:45.515 --> 00:05:48.800
a public participation hearing that will capture input
00:05:48.800 --> 00:05:51.890
about Cal Water's general rate case application.
00:05:51.890 --> 00:05:54.143
That application is 2107002.
00:05:56.520 --> 00:05:58.240
While both of Cal Water's applications
00:05:58.240 --> 00:06:00.840
may affect rates, they cover different issues
00:06:00.840 --> 00:06:04.013
of law in fact, and thus are considered separately.
00:06:05.970 --> 00:06:08.490
There are nine public participation hearings scheduled
00:06:08.490 --> 00:06:11.123
next month for the general rate case.
00:06:12.200 --> 00:06:14.780
Therefore, if the comment you intended to make tonight
00:06:14.780 --> 00:06:17.150
is about an issue in the general rate case,
00:06:17.150 --> 00:06:20.420
you should call back next month so that it is recorded
00:06:20.420 --> 00:06:21.993
in the appropriate proceeding.
00:06:22.930 --> 00:06:25.200
But if you feel your comment tonight addresses
00:06:25.200 --> 00:06:28.550
both the cost of capital case and the general rate case,
00:06:28.550 --> 00:06:30.700
please stay on the line tonight and make it,
00:06:30.700 --> 00:06:32.180
make your comment.
00:06:32.180 --> 00:06:35.300
And call again in April
00:06:35.300 --> 00:06:38.200
to the public participation hearing for your service area.
00:06:39.420 --> 00:06:41.310
To find out more about the general rate case
00:06:41.310 --> 00:06:44.370
public participation hearing,
00:06:44.370 --> 00:06:46.853
I encourage you to go to the following URL,
00:06:47.730 --> 00:06:52.730
www.cpuc.ca.gov/proceedings-
00:06:55.777 --> 00:07:00.777
and-rulemaking/cpuc-public-participation-hearings.
00:07:08.170 --> 00:07:12.080
On that webpage, you can scroll down about 2/3 of the way
00:07:12.080 --> 00:07:15.550
and you'll find the April public participation hearing dates
00:07:15.550 --> 00:07:19.743
and information for application 2107002.
00:07:22.180 --> 00:07:26.130
I noted earlier that both of that case and this case
00:07:26.130 --> 00:07:27.680
affect rates for Cal...
00:07:27.680 --> 00:07:29.980
It may affect rates for Cal Water
00:07:29.980 --> 00:07:34.600
and they are related in that the cost of capital
00:07:34.600 --> 00:07:39.370
decided here for Cal Water is going to be used and applied
00:07:39.370 --> 00:07:42.240
as part of the general rate case decision.
00:07:42.240 --> 00:07:44.460
That is our intent, at least.
00:07:44.460 --> 00:07:47.520
So with all of that background,
00:07:47.520 --> 00:07:50.020
and before we get to the public comment portion,
00:07:50.020 --> 00:07:51.830
I wanted to give the Commissioner an opportunity
00:07:51.830 --> 00:07:54.883
to make a statement and provide a comment, Commissioner?
00:07:56.950 --> 00:07:58.330
Thank you, Judge Haga.
00:07:58.330 --> 00:08:00.777
Good evening, again, my name is Darcie Houck
00:08:00.777 --> 00:08:03.700
and as the judge indicated, I'm the assigned Commissioner
00:08:03.700 --> 00:08:05.480
for the cost of capital proceeding
00:08:05.480 --> 00:08:08.240
for California Water Service Company.
00:08:08.240 --> 00:08:11.040
And I wanna thank you all for taking the time to provide
00:08:11.040 --> 00:08:13.290
your comments on this important matter.
00:08:13.290 --> 00:08:15.480
I appreciate the opportunity to hear from you
00:08:15.480 --> 00:08:18.180
before we make our final decision in the proceeding.
00:08:18.180 --> 00:08:21.700
The cost of capital that is approved in this proceeding
00:08:21.700 --> 00:08:22.940
affects utility rates.
00:08:22.940 --> 00:08:25.240
And I know that is always a concern for customers,
00:08:25.240 --> 00:08:26.600
especially rates for water,
00:08:26.600 --> 00:08:29.000
which are an essential service.
00:08:29.000 --> 00:08:31.740
I'd like to thank Judge Haga and the Public Advisor's Office
00:08:31.740 --> 00:08:34.290
for hosting the event this evening.
00:08:34.290 --> 00:08:37.930
I'd like to specifically thank Allison Brown, Juanita Hill,
00:08:37.930 --> 00:08:39.710
Eric Sawyer, and Claudia Sanchez
00:08:39.710 --> 00:08:41.670
from our Public Advisors Office.
00:08:41.670 --> 00:08:43.740
And I'd also like to thank our court reporters,
00:08:43.740 --> 00:08:47.100
Carly Powers and Jason Stacy, and our IT staff,
00:08:47.100 --> 00:08:49.090
Robert Stanford and Joseph Haga.
00:08:49.090 --> 00:08:51.560
We could not hold these hearings without their support,
00:08:51.560 --> 00:08:53.700
especially in this virtual environment.
00:08:53.700 --> 00:08:56.130
And again, thank Judge Haga for all of his work
00:08:56.130 --> 00:08:57.170
on this proceeding.
00:08:57.170 --> 00:08:59.170
And with that, I will turn the proceeding
00:08:59.170 --> 00:09:00.603
back over to you judge.
00:09:02.170 --> 00:09:03.420
Thank you Commissioner.
00:09:04.690 --> 00:09:05.730
As mentioned earlier,
00:09:05.730 --> 00:09:07.940
the purpose of the hearing is for the Commission to hear
00:09:07.940 --> 00:09:10.270
from customers members of the public
00:09:10.270 --> 00:09:12.470
about California Water Service Companies request
00:09:12.470 --> 00:09:14.070
to increase its cost of capital.
00:09:15.060 --> 00:09:17.820
Cal Water is requesting an increase in the rate of return
00:09:17.820 --> 00:09:22.677
on rate base from 7.48%, its current rate
00:09:23.660 --> 00:09:28.660
to 7.5% for the period from January 1st, 2022
00:09:29.000 --> 00:09:31.213
through December 31st, 2024.
00:09:32.286 --> 00:09:34.860
The request which the Commission is considering
00:09:34.860 --> 00:09:39.860
is found in the before mentioned application, 2105002.
00:09:42.640 --> 00:09:43.620
Now, if you have a question
00:09:43.620 --> 00:09:45.660
unrelated to the proposed rate increase
00:09:45.660 --> 00:09:47.450
such as the question about a service problem
00:09:47.450 --> 00:09:49.270
or bill inaccuracy,
00:09:49.270 --> 00:09:51.110
Cal Waters customer service representatives
00:09:51.110 --> 00:09:54.400
are available by phone now,
00:09:54.400 --> 00:09:56.030
and you are encouraged to contact
00:09:56.030 --> 00:10:01.030
their customer service center at 661-837-7222.
00:10:04.810 --> 00:10:09.020
Or you can contact them by email at rateshelp@calwater.com.
00:10:12.610 --> 00:10:15.351
Also, a Cal Water officer is present at this hearing
00:10:15.351 --> 00:10:17.983
and is listening to learn from customers feedback.
00:10:18.920 --> 00:10:20.470
If you have a question you wanna ask Cal Water
00:10:20.470 --> 00:10:22.520
during this public participation hearing,
00:10:23.530 --> 00:10:27.818
you may contact the customer service line
00:10:27.818 --> 00:10:32.818
or the company representative with any questions.
00:10:44.020 --> 00:10:47.057
That representative is Greg Milleman
00:10:47.057 --> 00:10:51.823
and is available at 408-367-8498.
00:10:59.130 --> 00:11:01.820
Now, unfortunately we'll not be able to provide answers
00:11:01.820 --> 00:11:03.190
to you questions today,
00:11:03.190 --> 00:11:05.020
but the Commission's public advisor is listening
00:11:05.020 --> 00:11:07.560
to this hearing and will introduce herself soon
00:11:07.560 --> 00:11:08.990
and provide contact information
00:11:08.990 --> 00:11:10.770
for how you can reach out to us
00:11:10.770 --> 00:11:12.570
with questions about the proceeding.
00:11:13.750 --> 00:11:18.750
So the next few things I wanna just cover are first,
00:11:20.270 --> 00:11:21.710
some general background information
00:11:21.710 --> 00:11:24.053
on the California Public Utilities Commission.
00:11:24.960 --> 00:11:29.480
Second, about Cal Water's cost of capital application,
00:11:29.480 --> 00:11:31.750
which seeks the rate increase
00:11:31.750 --> 00:11:33.300
that we're talking about today.
00:11:34.340 --> 00:11:37.060
Then I'll turn it over to Ms. Allison Brown,
00:11:37.060 --> 00:11:39.010
who's the Commission's public advisor
00:11:39.010 --> 00:11:41.900
to provide more information on public participation
00:11:41.900 --> 00:11:44.913
and how to submit comments on this case to the Commission.
00:11:46.120 --> 00:11:48.700
Finally, after we hear from Ms. Brown,
00:11:48.700 --> 00:11:52.080
I'll ask for speakers to make their comments
00:11:52.080 --> 00:11:54.090
and we will begin the public comment portion
00:11:54.090 --> 00:11:55.053
of today's hearing.
00:11:57.030 --> 00:12:00.030
Right now, I repeat the instructions for how to participate.
00:12:01.940 --> 00:12:06.940
Call the 800 number 800-857-1917, which is on your screen.
00:12:08.530 --> 00:12:13.277
Enter passcode, 1673482#.
00:12:15.650 --> 00:12:19.160
Then press *1 on your phone and provide your name
00:12:19.160 --> 00:12:19.993
when prompted.
00:12:21.310 --> 00:12:23.610
By pressing *1, you alert the operator
00:12:23.610 --> 00:12:26.763
who put you into the queue of public speakers.
00:12:28.880 --> 00:12:33.880
When you are called, please first spell your full name
00:12:36.440 --> 00:12:39.283
And tell us where you're calling from.
00:12:41.820 --> 00:12:42.960
If you are a public official
00:12:42.960 --> 00:12:44.460
and wish to go to the front of the line,
00:12:44.460 --> 00:12:48.099
please press *1 when prompted and provide your name
00:12:48.099 --> 00:12:51.000
and indicate that you are an elected official
00:12:51.000 --> 00:12:53.693
so the operator can move you to the front of the line.
00:12:58.490 --> 00:12:59.730
Now, some background
00:12:59.730 --> 00:13:02.030
on the California Public Utilities Commission.
00:13:03.380 --> 00:13:05.620
The California Public Utilities Commission
00:13:05.620 --> 00:13:08.310
is the state agency that is required to decide
00:13:08.310 --> 00:13:11.250
how much money Cal Water may earn
00:13:11.250 --> 00:13:14.050
and how much Cal Water is allowed to charge in rates
00:13:14.050 --> 00:13:16.193
included on your bills for water service.
00:13:17.330 --> 00:13:20.310
By state law, the Commission includes five Commissioners
00:13:20.310 --> 00:13:21.720
who are each appointed by the Governor
00:13:21.720 --> 00:13:23.351
of the state of California and confirmed
00:13:23.351 --> 00:13:25.483
by the California State Senate.
00:13:26.750 --> 00:13:29.120
The five Commissioners make the final decision
00:13:29.120 --> 00:13:31.760
on Cal Water's request to increase its cost of capital
00:13:31.760 --> 00:13:32.593
in this case.
00:13:33.830 --> 00:13:36.040
As the Administrative Law Judge in this proceeding,
00:13:36.040 --> 00:13:38.850
I manage the day to day activities of the case
00:13:38.850 --> 00:13:41.713
and make recommendations to the five Commissioners.
00:13:42.650 --> 00:13:44.760
The five Commissioners are the ones who will decide
00:13:44.760 --> 00:13:47.710
with a vote on whether to approve Cal Water's request
00:13:47.710 --> 00:13:49.310
to increase its cost of capital.
00:13:50.270 --> 00:13:52.890
My role as the Administrative Law Judge
00:13:52.890 --> 00:13:55.720
is to evaluate the evidence presented in the proceeding,
00:13:55.720 --> 00:13:58.290
including comments provided today,
00:13:58.290 --> 00:14:00.670
and to recommend an outcome to the five Commissioners
00:14:00.670 --> 00:14:03.393
in a proposed decision, based on the evidence.
00:14:04.640 --> 00:14:06.500
The proposed decision or recommendation
00:14:06.500 --> 00:14:09.180
will then be considered by the five Commissioners
00:14:09.180 --> 00:14:12.390
who will decide whether to adopt the proposed decision
00:14:12.390 --> 00:14:15.010
or to instead adopt their own different decision
00:14:15.010 --> 00:14:17.750
based on the evidence in the proceeding.
00:14:17.750 --> 00:14:19.860
The current schedule for this proceeding anticipates
00:14:19.860 --> 00:14:22.700
that the five Commissioners will vote on the final decision
00:14:22.700 --> 00:14:24.923
in the fourth quarter of 2022.
00:14:27.460 --> 00:14:30.483
Now to provide a summary of Cal Water's application.
00:14:31.850 --> 00:14:35.000
In May, 2021, Cal Water submitted
00:14:35.000 --> 00:14:36.720
its cost of capital application
00:14:36.720 --> 00:14:38.340
seeking the Commission's authorization
00:14:38.340 --> 00:14:43.340
to set new equity returns, cost of debt, capital structures,
00:14:43.890 --> 00:14:46.484
and overall rates of return on rate base for the period,
00:14:46.484 --> 00:14:51.484
January 1st, 2022 to December 31st, 2024.
00:14:52.690 --> 00:14:55.160
They're required to file this type of application
00:14:55.160 --> 00:14:56.283
every three years.
00:14:57.480 --> 00:15:00.220
In this application, Cal Water proposes the Commission,
00:15:00.220 --> 00:15:02.958
a proven an increase to its authorized cost of capital
00:15:02.958 --> 00:15:04.713
from 7.48% to 7.5%.
00:15:08.415 --> 00:15:10.290
The proposed rate of return reflects
00:15:10.290 --> 00:15:14.380
a proposed 10.35% cost of equity
00:15:15.240 --> 00:15:18.663
and a proposed 4.23% cost of debt.
00:15:20.230 --> 00:15:22.880
Cal Water states, the bill effects of such an increase
00:15:22.880 --> 00:15:25.703
will vary by district and range from 0.3% to 1.3%,
00:15:28.239 --> 00:15:31.290
increasing a typical bill between 16 cents per month
00:15:31.290 --> 00:15:32.993
to 72 cents per month.
00:15:35.220 --> 00:15:39.810
Now the other party participating in the Cal Water portion
00:15:39.810 --> 00:15:42.880
of the proceeding, the Public Advocate's Office
00:15:42.880 --> 00:15:45.020
has submitted testimony calling for a reduction
00:15:45.020 --> 00:15:49.150
in the authorized cost of capital from the current 7.48%,
00:15:49.150 --> 00:15:52.223
reducing it to 6.13%.
00:15:55.250 --> 00:15:59.933
Sorry, to 6%, 6.00%.
00:16:03.760 --> 00:16:05.370
And as I mentioned earlier,
00:16:05.370 --> 00:16:07.940
detailed information regarding this request
00:16:07.940 --> 00:16:09.990
is available on the Commission's website.
00:16:10.980 --> 00:16:13.784
And I note that these estimates are based on many factors
00:16:13.784 --> 00:16:16.450
and may not reflect what might actually change
00:16:16.450 --> 00:16:18.150
with your monthly Cal Water bills.
00:16:20.920 --> 00:16:22.950
While we're here today to receive comments
00:16:22.950 --> 00:16:25.690
from the public and customers on Cal Water's request
00:16:25.690 --> 00:16:27.580
to changes authorized cost of capital
00:16:27.580 --> 00:16:31.970
and increased rates beginning in 2022, through 2024,
00:16:31.970 --> 00:16:34.502
I wanna acknowledge the pandemic has imposed hardships
00:16:34.502 --> 00:16:37.112
and changes throughout the state, communities
00:16:37.112 --> 00:16:39.660
and in our daily lives.
00:16:39.660 --> 00:16:42.030
We are holding these hearings online and by phone
00:16:42.030 --> 00:16:44.911
because of ongoing concerns regarding the pandemic.
00:16:44.911 --> 00:16:46.810
And while the current trends are positive,
00:16:46.810 --> 00:16:48.100
the Commission scheduled these hearings
00:16:48.100 --> 00:16:49.600
many months in advance
00:16:49.600 --> 00:16:51.040
and have found that during the pandemic,
00:16:51.040 --> 00:16:53.470
remote hearings provide a convenient way for many people
00:16:53.470 --> 00:16:57.120
to participate while promoting greater understanding
00:16:57.120 --> 00:16:58.863
of the impact of rate changes.
00:17:00.360 --> 00:17:03.033
Public engagement remains critical to the Commission.
00:17:03.960 --> 00:17:05.270
I and all of the Commissioners
00:17:05.270 --> 00:17:06.630
will be paying careful attention
00:17:06.630 --> 00:17:08.580
to the comments provided today.
00:17:08.580 --> 00:17:11.460
And we all have the ability to review the written transcript
00:17:11.460 --> 00:17:12.780
of this public hearing,
00:17:12.780 --> 00:17:15.430
being created by the court reporters
00:17:15.430 --> 00:17:17.310
who will be working behind the scenes
00:17:17.310 --> 00:17:18.713
throughout today's hearing.
00:17:20.150 --> 00:17:21.750
The court reporter will be transcribing
00:17:21.750 --> 00:17:24.593
everything that is said today into a written document.
00:17:25.810 --> 00:17:29.160
If you speak, I ask that you speak slowly
00:17:29.160 --> 00:17:33.460
and clearly so that the reporter can capture everything
00:17:33.460 --> 00:17:34.930
that is said.
00:17:34.930 --> 00:17:36.650
At the beginning of your comments,
00:17:36.650 --> 00:17:39.470
again, please spell your first and last name
00:17:39.470 --> 00:17:41.863
and provide the city where you are located.
00:17:43.760 --> 00:17:45.570
The written transcript of today's hearing
00:17:45.570 --> 00:17:48.420
created by the court reporters will be posted publicly
00:17:48.420 --> 00:17:50.480
on the Docket Card for this proceeding
00:17:50.480 --> 00:17:53.253
on the Commission's website in the next few weeks.
00:17:55.050 --> 00:17:57.300
You should also know that while we welcome you
00:17:57.300 --> 00:17:59.360
to provide verbal comments today,
00:17:59.360 --> 00:18:02.890
you may also provide or provide written comments
00:18:02.890 --> 00:18:05.840
on Cal Waters proposed rate increase
00:18:05.840 --> 00:18:07.930
on the Docket Card for this proceeding,
00:18:07.930 --> 00:18:09.700
by going to the Commission's website,
00:18:09.700 --> 00:18:14.113
go under Proceedings in Docket Card.
00:18:15.050 --> 00:18:16.300
You enter the proceeding number,
00:18:16.300 --> 00:18:18.363
no spaces or dashes A2105002.
00:18:20.758 --> 00:18:24.170
You can also find that directly at this URL,
00:18:24.170 --> 00:18:29.170
apps.cpu.ca.gov/c/A2105002
00:18:39.130 --> 00:18:44.130
That's apps.cpu.ca.gov/c/A2105002
00:18:50.230 --> 00:18:52.640
You can also continue to review the filings by Cal Water
00:18:52.640 --> 00:18:55.660
and other parties in this case on the Commission's website.
00:18:55.660 --> 00:18:58.180
In the Subscription option that exists on the Docket Card
00:18:58.180 --> 00:19:01.423
for members of the public to receive filings by email.
00:19:02.460 --> 00:19:05.190
As I mentioned before, the Docket Card at this proceeding
00:19:05.190 --> 00:19:07.900
has the option for customers to submit written comments
00:19:07.900 --> 00:19:09.823
at any time during the proceeding.
00:19:10.880 --> 00:19:13.660
And also note, that I am tracking those comments.
00:19:13.660 --> 00:19:16.260
I set aside time every week to review comments
00:19:16.260 --> 00:19:17.093
in my proceedings,
00:19:17.093 --> 00:19:19.470
and I update the Commissioner on public comments
00:19:19.470 --> 00:19:21.140
on a regular basis.
00:19:21.140 --> 00:19:23.210
Now we'll include a summary of public comments
00:19:23.210 --> 00:19:25.670
at the PPH's and on the Docket Card
00:19:25.670 --> 00:19:27.630
in my recommendation to the Commission,
00:19:27.630 --> 00:19:29.753
when I put together a proposed decision.
00:19:33.010 --> 00:19:35.390
As of today, we only have a couple of written comments
00:19:35.390 --> 00:19:37.063
on the Docket Card for this case.
00:19:37.920 --> 00:19:40.220
So I look forward to hearing from you tonight.
00:19:41.130 --> 00:19:42.482
The main purpose of today's hearing
00:19:42.482 --> 00:19:45.690
is to hear directly from you as Cal Water customers
00:19:45.690 --> 00:19:48.910
and members of the public about this particular request
00:19:48.910 --> 00:19:50.773
to modify rates for water service.
00:19:51.960 --> 00:19:55.500
Now I'll turn it over to Ms. Allison Brown,
00:19:55.500 --> 00:19:57.090
the Commission's public advisor
00:19:57.090 --> 00:19:59.360
to provide additional guidance on participation
00:19:59.360 --> 00:20:00.830
in this proceeding.
00:20:00.830 --> 00:20:01.663
Ms. Brown.
00:20:03.100 --> 00:20:04.870
Thank you, judge.
00:20:04.870 --> 00:20:05.890
Welcome everyone.
00:20:05.890 --> 00:20:08.100
My name is Allison Brown and I'm the public advisor
00:20:08.100 --> 00:20:09.810
for the CPUC.
00:20:09.810 --> 00:20:12.920
The Public Advisor's Office assists and advises the public
00:20:12.920 --> 00:20:15.700
with participation in Commission proceedings.
00:20:15.700 --> 00:20:17.550
So we are here is a resource for you.
00:20:18.470 --> 00:20:20.750
As the judge noted, your participation is critical
00:20:20.750 --> 00:20:22.930
to the decision making process.
00:20:22.930 --> 00:20:25.120
In addition to making a comment today,
00:20:25.120 --> 00:20:27.570
there are several other ways to become involved.
00:20:27.570 --> 00:20:30.510
If you wish to find more information about becoming a party,
00:20:30.510 --> 00:20:32.480
subscribing to this proceeding,
00:20:32.480 --> 00:20:35.210
or submitting written comments to the Docket Card,
00:20:35.210 --> 00:20:38.807
please visit our website, www.cpuc.ca.gov,
00:20:41.561 --> 00:20:44.450
or email us to the Public Advisor's Office.
00:20:44.450 --> 00:20:49.450
That email address is public.advisor@cpuc.ca.gov
00:20:50.450 --> 00:20:55.140
You can also give us a call at 1-866-849-8390.
00:20:57.320 --> 00:20:58.790
All of this information is available
00:20:58.790 --> 00:21:01.050
on the notice you received for today.
00:21:01.050 --> 00:21:02.960
Thank you very much for joining us.
00:21:02.960 --> 00:21:03.910
Back to you, judge.
00:21:06.640 --> 00:21:08.170
Thank you, Ms. Brown.
00:21:08.170 --> 00:21:11.820
Again, if you wish to speak today to make a statement,
00:21:11.820 --> 00:21:16.820
please call the phone line 1-800-857-1917.
00:21:16.940 --> 00:21:20.037
Use path code 1673482# and press *1
00:21:23.580 --> 00:21:26.013
to let the operator know that you wish to speak.
00:21:41.288 --> 00:21:42.810
At this point, we're ready to hear
00:21:42.810 --> 00:21:44.160
from members of the public.
00:21:45.890 --> 00:21:47.620
If you haven't pressed *1 and wish to speak,
00:21:47.620 --> 00:21:49.720
now is the best opportunity to do so,
00:21:49.720 --> 00:21:51.857
so that we can have plenty of time
00:21:51.857 --> 00:21:53.413
to get everyone commenting.
00:21:58.240 --> 00:22:00.510
We do have a time limit of three minutes,
00:22:00.510 --> 00:22:01.830
depending upon the number of callers.
00:22:01.830 --> 00:22:03.963
We'll see how closely we adhere to that.
00:22:06.010 --> 00:22:09.000
But I remind everyone that you please speak slowly
00:22:09.000 --> 00:22:13.130
and clearly so the court reporters can accurately transcribe
00:22:13.130 --> 00:22:14.630
your comments.
00:22:14.630 --> 00:22:16.750
When the operator lets you know it's your turn to speak,
00:22:16.750 --> 00:22:19.150
please start your comments by providing your full name,
00:22:19.150 --> 00:22:21.473
spelling your first and last name
00:22:21.473 --> 00:22:23.573
and let us know where you're calling from.
00:22:25.440 --> 00:22:28.490
Also, please mute your phone when not speaking
00:22:28.490 --> 00:22:30.820
so that we will be able to hear you best.
00:22:30.820 --> 00:22:33.820
Mute your computer also
00:22:33.820 --> 00:22:35.540
if you're getting it over the computer,
00:22:35.540 --> 00:22:38.090
getting this feed over the computer.
00:22:38.090 --> 00:22:39.540
Please do not use a speaker phone
00:22:39.540 --> 00:22:41.183
when you're providing your comment.
00:22:49.680 --> 00:22:52.680
Operator, please ask the first person in the queue to speak.
00:22:53.740 --> 00:22:56.430
Thank you, the public comment line is now open.
00:22:56.430 --> 00:22:58.700
Our first public comment comes from Craig Bailey.
00:22:58.700 --> 00:23:00.363
Craig, your line is open.
00:23:01.720 --> 00:23:04.070
Hello, yes, thank you.
00:23:04.070 --> 00:23:09.070
My name Craig Bailey, C-R-A-I-G B-A-I-L-E-Y.
00:23:11.960 --> 00:23:15.100
And I'm calling today from my office
00:23:15.100 --> 00:23:17.760
in Long Beach, California,
00:23:17.760 --> 00:23:22.240
but my call concerns my residence
00:23:22.240 --> 00:23:26.470
in Rancho Palos Verdes, California.
00:23:26.470 --> 00:23:30.120
And the point I wanted to make is that I believe
00:23:30.120 --> 00:23:35.120
it's important that the Commission take into account
00:23:35.210 --> 00:23:40.160
recent rate increases by Cal Water
00:23:40.160 --> 00:23:45.070
in deciding whether to approve any further increases
00:23:45.070 --> 00:23:50.070
because the recent increases that I have seen on my bill
00:23:51.280 --> 00:23:56.280
have been dramatic in magnitude to say the least.
00:23:57.140 --> 00:24:00.310
And let me just give you an example.
00:24:00.310 --> 00:24:05.310
In August of 2020, I paid $417 in a month
00:24:08.770 --> 00:24:13.770
to use 54 CCF of water.
00:24:13.970 --> 00:24:18.740
One year later in August of 2021,
00:24:18.740 --> 00:24:23.740
I paid $662 for exactly the same of water, 54 CCF.
00:24:30.340 --> 00:24:35.340
The increase, that's a 60% increase in one year.
00:24:35.650 --> 00:24:40.480
The increase was due primarily to three factors.
00:24:40.480 --> 00:24:44.050
First, there was a 50% increase
00:24:44.050 --> 00:24:49.050
in what is called the 1.5 inch service charge.
00:24:49.440 --> 00:24:54.440
That charge went from $105 a month in August of 2020
00:24:55.750 --> 00:25:00.750
to $158 a month in August of 2021.
00:25:02.340 --> 00:25:03.580
And it's my understanding,
00:25:03.580 --> 00:25:07.300
that's a fee that's paid regardless of how much water
00:25:07.300 --> 00:25:09.430
you actually used.
00:25:09.430 --> 00:25:14.430
Secondly, there was a 55% increase in my tier three charge
00:25:16.540 --> 00:25:21.540
that went from $6.5 to $9.35 cents per CCF.
00:25:25.350 --> 00:25:30.350
And then there was a to 25% increase in my tier two charge,
00:25:30.900 --> 00:25:34.640
which went from $5.4 to $6.23 cents per CCF.
00:25:39.150 --> 00:25:41.210
And then in addition to all that,
00:25:41.210 --> 00:25:46.013
there was a 5% increase in the tier one charge.
00:25:47.090 --> 00:25:52.090
There was a 80% increase in so called CPUC fees.
00:25:55.790 --> 00:25:59.540
There was a 100% increase in so called
00:25:59.540 --> 00:26:02.630
Public Purpose Programs.
00:26:02.630 --> 00:26:04.740
And then there was an interesting category
00:26:04.740 --> 00:26:09.740
called Other Charges that went from zero in August of 2020
00:26:12.170 --> 00:26:17.170
to $44 per month in August of 2021.
00:26:19.370 --> 00:26:21.510
And then of course, in addition to all that,
00:26:21.510 --> 00:26:24.530
they're all of the related local taxes,
00:26:24.530 --> 00:26:28.600
which I guess in part are based on how much water
00:26:30.300 --> 00:26:31.963
you are using.
00:26:31.963 --> 00:26:35.410
So, the point I wanna make for the Commission is that
00:26:35.410 --> 00:26:38.490
when in these public announcements,
00:26:38.490 --> 00:26:42.637
Cal Water claims that it's only raising your rates
00:26:42.637 --> 00:26:45.490
less than 1%.
00:26:45.490 --> 00:26:48.460
I believe the Commission needs to take those claims
00:26:48.460 --> 00:26:51.650
with a grain of salt and look much deeper
00:26:51.650 --> 00:26:54.260
as to what has been done in the past
00:26:54.260 --> 00:26:59.260
and what it's really going to cost consumers moving forward,
00:27:00.060 --> 00:27:05.060
should the additional rate increases be approved.
00:27:05.840 --> 00:27:09.480
And let me just conclude with this point that, you know,
00:27:09.480 --> 00:27:11.230
the announcement for this meeting
00:27:11.230 --> 00:27:16.063
said that the average consumer who used 15 CCF of water
00:27:17.788 --> 00:27:22.788
should be paying on the order of $107 per month.
00:27:23.870 --> 00:27:28.870
Well, in fact, in my case, if I was using 15 CCF of water,
00:27:29.760 --> 00:27:32.320
based on the proposed rates,
00:27:32.320 --> 00:27:37.030
my bill would actually be $237 a month
00:27:37.030 --> 00:27:40.030
or double what Cal Water claims
00:27:40.030 --> 00:27:42.461
and that doesn't even take account of taxes
00:27:42.461 --> 00:27:46.909
and all of the extra fees that are part of the bill
00:27:46.909 --> 00:27:51.820
that $237 would be the basic service charge
00:27:51.820 --> 00:27:56.820
plus the user fee for the 15 CCF.
00:27:57.380 --> 00:27:59.860
So those were the comments I wanted to make.
00:27:59.860 --> 00:28:03.470
And I thank you for your attention
00:28:03.470 --> 00:28:06.070
and for giving me the opportunity to speak.
00:28:06.070 --> 00:28:07.210
Thank you.
00:28:07.210 --> 00:28:09.923
Thank you, Mr. Bailey, that's very informative.
00:28:10.957 --> 00:28:13.580
Operator, who is the next caller?
00:28:13.580 --> 00:28:15.140
Our next public comment comes from
00:28:15.140 --> 00:28:16.260
Bill Wellman.
00:28:16.260 --> 00:28:17.933
Bill, your line is open.
00:28:19.910 --> 00:28:21.090
Okay, excuse me just for a moment,
00:28:21.090 --> 00:28:22.970
I just need to stop something here
00:28:22.970 --> 00:28:27.200
that's gonna make a lot of noise before I get started here.
00:28:27.200 --> 00:28:29.480
We'll be off the record for a moment.
00:28:29.480 --> 00:28:32.578
Thank you, appreciate it, thank you.
00:28:32.578 --> 00:28:33.823
Let us know when you're ready.
00:28:39.580 --> 00:28:41.680
Okay, should be fine.
00:28:41.680 --> 00:28:43.410
Great, then we're back on the record.
00:28:43.410 --> 00:28:44.893
Mr. Wellman, go ahead.
00:28:46.840 --> 00:28:49.370
Thank you, Phil Wellman,
00:28:49.370 --> 00:28:54.370
P-H-I-L W-E-L-L-M-A-N.
00:28:55.560 --> 00:28:58.653
I'm a California American customer in Carmel.
00:29:00.310 --> 00:29:03.620
In the real world, companies are rewarded with profit
00:29:03.620 --> 00:29:05.590
for a job well done.
00:29:05.590 --> 00:29:07.380
For some baffling reason,
00:29:07.380 --> 00:29:09.760
Cal-Am has gotten away with mismanaging,
00:29:09.760 --> 00:29:13.210
the Monterey Peninsulas Water Supply for decades
00:29:13.210 --> 00:29:16.140
while charging skyrocketing rates.
00:29:16.140 --> 00:29:19.190
Last summer, the water bills for our home
00:29:19.190 --> 00:29:22.010
averaged $800 a month.
00:29:22.010 --> 00:29:25.190
In 2017, the Food and Water Watch Study
00:29:25.190 --> 00:29:28.980
of the 500 largest water systems in the US,
00:29:28.980 --> 00:29:30.680
found that the Monterey Peninsula
00:29:30.680 --> 00:29:33.433
had the highest water costs in the country.
00:29:34.350 --> 00:29:36.400
Why should Cal M profit,
00:29:36.400 --> 00:29:38.693
when we're suffering from their incompetence?
00:29:40.400 --> 00:29:43.140
Residents are still paying off 64 million
00:29:43.140 --> 00:29:46.200
for the water we didn't use in the last drought
00:29:46.200 --> 00:29:50.210
and the Ram charges have yet to be removed from our bills.
00:29:50.210 --> 00:29:53.200
On top of that, we've paid 34 million
00:29:53.200 --> 00:29:56.100
for Cal-Am's past failed projects.
00:29:56.100 --> 00:29:58.930
And soon they'll be asking us to pay for their failed
00:29:58.930 --> 00:30:00.840
Diesel project.
00:30:00.840 --> 00:30:02.610
Cal-Am is a monopoly.
00:30:02.610 --> 00:30:04.410
It doesn't have to do a good job
00:30:04.410 --> 00:30:08.380
because it has no competition and we have no choice.
00:30:08.380 --> 00:30:11.870
The cost of capital is intended to reward risk,
00:30:11.870 --> 00:30:16.148
but Cal-Am's customers pay for the mistakes it makes.
00:30:16.148 --> 00:30:18.770
Please decrease their cost of capital.
00:30:18.770 --> 00:30:22.430
Cal-Am should not be rewarded for decades of failure
00:30:22.430 --> 00:30:24.480
on the Monterey Peninsula.
00:30:24.480 --> 00:30:25.313
Thank you.
00:30:26.420 --> 00:30:27.670
Thank you, Mr. Wellman.
00:30:29.260 --> 00:30:30.910
Operator, who is the next caller?
00:30:31.770 --> 00:30:33.080
Our next public comment
00:30:33.080 --> 00:30:34.270
comes from Barbara Moore.
00:30:34.270 --> 00:30:36.073
Barbara, your line is open.
00:30:36.991 --> 00:30:38.660
[Barbara} Yes, this is Barbara Moore.
00:30:38.660 --> 00:30:43.660
That's spelled B-A-R-B-A-R-A M-O-O-R-E.
00:30:44.060 --> 00:30:45.960
I also live on the Monterey Peninsula
00:30:45.960 --> 00:30:47.470
in the city of Monterey.
00:30:47.470 --> 00:30:50.705
And I have to agree with a lot of what Mr. Wellman said
00:30:50.705 --> 00:30:54.123
that Cal-Am really has no incentive to curb cost
00:30:54.123 --> 00:30:56.310
because they get a guaranteed profit.
00:30:56.310 --> 00:30:59.050
And we have seen this over and over again
00:30:59.050 --> 00:31:01.471
when they have spent money on capital expenditures,
00:31:01.471 --> 00:31:04.860
because they basically recover it from their customers.
00:31:04.860 --> 00:31:07.080
And unlike a normal corporation,
00:31:07.080 --> 00:31:12.080
which would have to take its cost and reduce its expenses
00:31:12.340 --> 00:31:15.330
and thereby reduce its shareholder's earnings,
00:31:15.330 --> 00:31:16.580
it doesn't do that.
00:31:16.580 --> 00:31:19.910
It basically passes on virtually everything to customers,
00:31:19.910 --> 00:31:22.300
which is exactly why that Food and Watch Study
00:31:22.300 --> 00:31:24.760
that Mr. Wellman mentioned shows
00:31:24.760 --> 00:31:27.135
that we pay the highest cost in the entire country,
00:31:27.135 --> 00:31:30.160
which is absolutely ludicrous for a small city
00:31:30.160 --> 00:31:33.960
like Monterey, where we have a great conservation record,
00:31:33.960 --> 00:31:38.110
even before we were requested in the last drought
00:31:38.110 --> 00:31:41.840
to reduce conservation, which we did quite effectively.
00:31:41.840 --> 00:31:45.830
We already were among the best conserving cities
00:31:45.830 --> 00:31:47.520
in the entire state.
00:31:47.520 --> 00:31:50.910
And what happened was then Cal-Am raised the rates
00:31:50.910 --> 00:31:55.050
because we had not used as much water as we had in the past.
00:31:55.050 --> 00:31:56.547
Not only is that counter to the policy
00:31:56.547 --> 00:32:01.547
of trying to encourage people to conserve.
00:32:01.620 --> 00:32:04.405
So it flies in the face of other states priorities,
00:32:04.405 --> 00:32:06.410
but it absolutely makes no sense
00:32:06.410 --> 00:32:09.540
as you can imagine the customers that by using less water,
00:32:09.540 --> 00:32:11.000
they pay more money.
00:32:11.000 --> 00:32:13.720
So I think to have any increase in the cost of capital
00:32:13.720 --> 00:32:17.060
for Cal-Am only exacerbates the problem
00:32:17.060 --> 00:32:19.970
that because it doesn't have the normal incentive
00:32:19.970 --> 00:32:23.173
to curb its cost and operate efficiently,
00:32:24.240 --> 00:32:25.470
it engages in projects,
00:32:25.470 --> 00:32:27.850
including like the current Diesel Program,
00:32:27.850 --> 00:32:31.400
which is incredibly overpriced and too expensive
00:32:31.400 --> 00:32:33.510
and much larger than what we need.
00:32:33.510 --> 00:32:37.940
And I think that's not gonna get improved in any way
00:32:37.940 --> 00:32:42.066
if the CPUC increases the cost of capital.
00:32:42.066 --> 00:32:47.066
Whether the figure that the public advisor has suggested
00:32:47.440 --> 00:32:49.360
is the right one, I don't know.
00:32:49.360 --> 00:32:50.953
But I certainly think that a reduction
00:32:50.953 --> 00:32:53.500
as opposed to an increases is in order.
00:32:53.500 --> 00:32:55.910
I thank you very much for giving us this extra time
00:32:55.910 --> 00:32:57.340
to get public comment,
00:32:57.340 --> 00:32:59.590
especially since I gather the first time,
00:32:59.590 --> 00:33:02.560
there was not a whole lot of public anticipation.
00:33:02.560 --> 00:33:04.310
Not really sure why that was.
00:33:04.310 --> 00:33:06.630
For me, it was because I didn't get much advanced notice
00:33:06.630 --> 00:33:09.210
and didn't have an opportunity to call in.
00:33:09.210 --> 00:33:11.510
So thank you for this additional opportunity.
00:33:11.510 --> 00:33:12.640
And I hope the Commission
00:33:12.640 --> 00:33:15.940
will really take into consideration the Cal-Am customers
00:33:15.940 --> 00:33:19.650
and the fact that we end up paying for their mistakes.
00:33:19.650 --> 00:33:21.090
Thank you very much.
00:33:21.960 --> 00:33:23.263
Thank you, Ms. Moore.
00:33:24.190 --> 00:33:26.838
I highlight again that if you want to speak tonight,
00:33:26.838 --> 00:33:31.838
please call the 800 number 800-857-1917.
00:33:32.550 --> 00:33:37.550
Use passcode 1673482# and then press *1
00:33:39.290 --> 00:33:42.130
to let the operator know that you wish to speak,
00:33:42.130 --> 00:33:43.300
but as Ms. Moore noted,
00:33:43.300 --> 00:33:46.200
we have additional opportunities to provide input
00:33:46.200 --> 00:33:49.393
via the Docket Card via the public comment process.
00:33:50.550 --> 00:33:54.150
We always appreciate public comments at any time
00:33:54.150 --> 00:33:55.753
during the course of the proceeding.
00:33:56.620 --> 00:33:59.210
Operator, who is the next caller?
00:33:59.210 --> 00:34:00.630
Our next public comment
00:34:00.630 --> 00:34:02.080
comes from Marli Melton.
00:34:02.080 --> 00:34:03.273
Your line is open.
00:34:04.627 --> 00:34:09.627
Hello. My name is Marli Melton, M-A-R-L-I M-E-L-T-O-N
00:34:12.580 --> 00:34:17.130
I'm a Cal-Am ratepayer in Carmel Valley, California.
00:34:17.130 --> 00:34:19.770
And of course like the other callers,
00:34:19.770 --> 00:34:23.070
I request that you please do not approve Cal-Am's
00:34:23.070 --> 00:34:25.283
additional cost of capital increase.
00:34:26.360 --> 00:34:28.530
Its parent company, American Water
00:34:28.530 --> 00:34:30.730
is part of the S and P 500.
00:34:30.730 --> 00:34:35.730
So many of us, and maybe you may own a tiny bit of that
00:34:36.530 --> 00:34:40.720
if we own any of the S and P 500 funds.
00:34:40.720 --> 00:34:44.617
but that does not mean that if you're on the CPC
00:34:44.617 --> 00:34:47.640
you have to guarantee us any income or profits
00:34:48.880 --> 00:34:52.580
or any increase or value in their stock price,
00:34:52.580 --> 00:34:57.580
which is already risen by 156% in the past five years,
00:34:57.720 --> 00:35:00.560
though, it has had a little dip along with the market.
00:35:00.560 --> 00:35:04.003
A little bit since the December of '22.
00:35:04.970 --> 00:35:07.253
But it's expected to recover handsomely.
00:35:08.270 --> 00:35:10.620
Cal-Am is a water monopoly, as you know,
00:35:10.620 --> 00:35:14.800
and in a capitalist economy, profits reward innovation,
00:35:14.800 --> 00:35:19.340
risk taking and increases in quality in competitive markets,
00:35:19.340 --> 00:35:23.610
but that's successful risk taking not just any risk
00:35:23.610 --> 00:35:26.903
that anyone wants to take or any silly expense.
00:35:27.960 --> 00:35:29.510
Typical profit rates
00:35:29.510 --> 00:35:32.220
for successful United States corporations
00:35:32.220 --> 00:35:35.673
in competitive markets are in the 5 1/2% to 7% range.
00:35:37.850 --> 00:35:42.850
And the median is 6% as recommended by the public advocate.
00:35:43.350 --> 00:35:45.780
But that would still be generous.
00:35:45.780 --> 00:35:49.830
Cal-Am, a monopoly water corporation faces no competition
00:35:49.830 --> 00:35:51.503
in its captive markets.
00:35:52.450 --> 00:35:54.880
Increasing its profits makes little sense,
00:35:54.880 --> 00:35:57.140
especially when they are already receiving
00:35:57.140 --> 00:35:58.760
above average return.
00:35:58.760 --> 00:36:01.913
And the reasons for the increase are highly questionable.
00:36:03.858 --> 00:36:08.300
(clears throat) You may wish to note that Walmart
00:36:08.300 --> 00:36:12.520
makes only 2.1% and other high profit companies
00:36:12.520 --> 00:36:16.280
in the S and P 500 also enjoy monopoly positions
00:36:16.280 --> 00:36:18.040
in their markets,
00:36:18.040 --> 00:36:22.110
but Cal-Am as a publicly regulated monopoly
00:36:22.110 --> 00:36:25.003
should not receive that kind of return.
00:36:26.090 --> 00:36:28.370
Cal-Am rate payers are currently paying
00:36:29.500 --> 00:36:32.580
some of the highest water rates in the country,
00:36:32.580 --> 00:36:36.100
and those are paid by thousands of very low income people
00:36:36.100 --> 00:36:41.100
and seniors on fixed incomes, who are in fact subsidizing
00:36:48.379 --> 00:36:53.270
lower rates for low income rate payers in other parts
00:36:53.270 --> 00:36:55.163
of Cal-Am service sector.
00:36:56.240 --> 00:36:59.623
That doesn't make any sense since it's extremely unfair.
00:37:02.120 --> 00:37:04.780
And in fact, if you were to approve this,
00:37:04.780 --> 00:37:09.780
this would be an 11% increase just in one year,
00:37:09.810 --> 00:37:13.330
which is way more than what anyone is getting
00:37:13.330 --> 00:37:17.093
in their social security or any kinds of income
00:37:18.410 --> 00:37:21.403
for most wage earning in Monterey County.
00:37:24.040 --> 00:37:27.010
In addition, we continue to pay Ram charges
00:37:27.010 --> 00:37:29.660
on top of Cal-Am's high rates,
00:37:29.660 --> 00:37:32.780
and you've also authorized Cal-Am to charge us for the costs
00:37:32.780 --> 00:37:36.283
of small water companies from which we receive no benefits.
00:37:38.040 --> 00:37:40.450
So please make the correct decision
00:37:40.450 --> 00:37:43.133
and deny the cost of capital increase.
00:37:44.340 --> 00:37:48.050
When you make these wonderful approvals for Cal-Am,
00:37:48.050 --> 00:37:51.090
nobody deducts the money from your paycheck,
00:37:51.090 --> 00:37:53.523
but we pay a lot more.
00:37:54.840 --> 00:37:56.003
Thank you so much.
00:37:57.680 --> 00:37:59.610
Thank you, miss Melton.
00:37:59.610 --> 00:38:01.333
Operator, who's the next caller?
00:38:02.430 --> 00:38:03.600
Our next public comment
00:38:03.600 --> 00:38:04.810
comes from Tammy Jennings.
00:38:04.810 --> 00:38:06.393
Tammy, your line is open.
00:38:08.210 --> 00:38:11.060
Yes, my name is Tammy Jennings,
00:38:11.060 --> 00:38:16.060
T-A-M-M-Y J-E-N-N-I-N-G-S.
00:38:17.150 --> 00:38:18.453
I live in Monterey.
00:38:19.450 --> 00:38:23.090
And my main comment is first of all,
00:38:23.090 --> 00:38:26.690
thank you for allowing us to speak today
00:38:26.690 --> 00:38:28.640
because I had other commitments.
00:38:28.640 --> 00:38:33.640
I did write a letter to you requesting that you deny
00:38:34.700 --> 00:38:36.333
Cal-Am's request.
00:38:40.400 --> 00:38:43.170
We are paying way too much for water.
00:38:43.170 --> 00:38:44.460
I am disabled.
00:38:44.460 --> 00:38:47.050
I live on a fixed income.
00:38:47.050 --> 00:38:50.990
I worked for 30 years before I became disabled.
00:38:50.990 --> 00:38:55.163
And I don't even know how I would pay the bills right now
00:38:56.420 --> 00:39:00.100
with the cost of living increases over everything
00:39:00.100 --> 00:39:01.660
with gasoline.
00:39:01.660 --> 00:39:04.577
But water is a necessity to live
00:39:08.300 --> 00:39:12.863
and for anybody to be able to make a profit on it, is wrong.
00:39:14.576 --> 00:39:19.576
And unconscionable, and Cal-Am continues to raise our rates
00:39:21.400 --> 00:39:22.233
over and over.
00:39:22.233 --> 00:39:25.330
And a lot of the problem too, I'm sorry,
00:39:25.330 --> 00:39:28.780
is that every time I have come before the CPUC
00:39:28.780 --> 00:39:33.780
and requested that Cal-Am not be rewarded for incompetency,
00:39:39.090 --> 00:39:43.770
the CPUC has allowed it and increased our rate.
00:39:43.770 --> 00:39:48.770
So I almost have a defeated attitude and why even bother?
00:39:50.030 --> 00:39:52.030
And I know that I shouldn't do that,
00:39:52.030 --> 00:39:56.830
but that's probably why you got such a low turnout
00:39:57.810 --> 00:40:02.770
with comment it's because I've been doing this so long
00:40:02.770 --> 00:40:07.660
and every time the CPUC rules in Cal-Am's favor,
00:40:07.660 --> 00:40:08.810
no matter what.
00:40:08.810 --> 00:40:13.810
And I hope that the CPUC will please take into consideration
00:40:15.300 --> 00:40:17.940
the state of our economy right now
00:40:17.940 --> 00:40:21.500
and deny this application.
00:40:21.500 --> 00:40:24.853
It is beyond a apprehensible.
00:40:26.510 --> 00:40:29.900
It's terrible, and it should not be allowed.
00:40:29.900 --> 00:40:31.580
Thank you for all your hard work.
00:40:31.580 --> 00:40:34.110
And I appreciate this chance to speak.
00:40:34.110 --> 00:40:34.943
Thank you.
00:40:36.190 --> 00:40:38.250
Thank you, Ms. Jennings.
00:40:38.250 --> 00:40:40.943
I hear you and I understand your comments.
00:40:43.350 --> 00:40:46.970
Operator, is there anyone else in the queue?
00:40:46.970 --> 00:40:48.730
I currently have no additional comments
00:40:48.730 --> 00:40:49.743
at this time.
00:40:50.890 --> 00:40:52.420
Okay, then...
00:41:02.140 --> 00:41:03.500
I currently have no additional comments
00:41:03.500 --> 00:41:04.803
at this time.
00:41:09.690 --> 00:41:11.059
Okay, then, well, we do have additional
00:41:11.059 --> 00:41:14.160
public participation hearings in these consolidated cases
00:41:14.160 --> 00:41:15.750
coming up tomorrow,
00:41:15.750 --> 00:41:19.710
the 17th of March and next Thursday, the 24th of March.
00:41:19.710 --> 00:41:24.152
All those will be focused on other companies
00:41:24.152 --> 00:41:25.552
Guess we'll see you tonight.
00:41:26.860 --> 00:41:29.410
If you can make a comment on any of the four cases.
00:41:31.300 --> 00:41:34.530
I also remind people that if you would like to resubmit
00:41:34.530 --> 00:41:37.470
written comments on the Docket Card for this proceeding,
00:41:37.470 --> 00:41:41.460
you can find the Docket Card on our website.
00:41:41.460 --> 00:41:44.203
Search for proceeding A2105002,
00:41:46.800 --> 00:41:48.300
the number of this proceeding.
00:41:50.628 --> 00:41:55.628
And, or you can just go directly to the URL
00:41:55.640 --> 00:42:00.640
to make comments at apps.cpuc.ca.gov/c/A2105002
00:42:08.530 --> 00:42:11.230
Additionally, if you need assistance providing comments,
00:42:11.230 --> 00:42:14.020
please contact the Commission's Public Advisor's Office,
00:42:14.020 --> 00:42:19.020
at public.advisor@cpuc.ca.gov.
00:42:20.210 --> 00:42:22.510
Commissioner, do you have any closing remarks?
00:42:24.020 --> 00:42:26.940
I wanna thank everyone that participated this evening
00:42:26.940 --> 00:42:28.200
and provided comments.
00:42:28.200 --> 00:42:31.650
I wanna thank our staff, court reporters, IT staff,
00:42:31.650 --> 00:42:35.000
Public Advisors Office, and you judge for your work.
00:42:35.000 --> 00:42:39.060
And I'll bring it back over to you.
00:42:39.060 --> 00:42:41.050
Thank you, Commissioner.
00:42:41.050 --> 00:42:43.370
Then this concludes this evening's
00:42:43.370 --> 00:42:45.180
public participation hearing
00:42:45.180 --> 00:42:48.580
in the California Water Service- cost of capital case.
00:42:48.580 --> 00:42:50.540
We'll be off the record, goodnight