WEBVTT 00:00:00.810 --> 00:00:03.160 Welcome to the California Public Utilities Commission 00:00:03.169 --> 00:00:05.980 American Water General Rate Case. On this day, Tuesday 00:00:05.988 --> 00:00:11.579 April 11, 2023. Judge Rambo, you may begin. All right. 00:00:13.630 --> 00:00:17.679 Good afternoon. We, uh can the court reporters can please 00:00:17.690 --> 00:00:21.920 confirm they are ready to begin? 00:00:21.920 --> 00:00:26.589 I'm, I'm ready Judge. All right, thank you. We will now 00:00:26.600 --> 00:00:29.809 be on the record. The Commission will come to order 00:00:30.510 --> 00:00:35.219 It is now 2pm on April 11th, 2023. This is the 00:00:35.228 --> 00:00:38.719 Remote Public Participation Hearing for the application 00:00:38.728 --> 00:00:41.950 of California American Water Company. For authority 00:00:41.959 --> 00:00:46.009 to increase rates and other requests. The docket number 00:00:46.020 --> 00:00:55.298 for this proceeding is A22-07-001. Please note 00:00:55.310 --> 00:00:58.500 that the audio and visual feed of this Public Hearing 00:00:58.509 --> 00:01:02.719 is being recorded, and is accessible on the Public Utilities 00:01:02.728 --> 00:01:06.948 Commission website. If you do not wish to be recorded, 00:01:06.959 --> 00:01:12.129 please disconnect now. My name is Jacob L. Rambo, and 00:01:12.138 --> 00:01:14.698 I am the assigned Administrative Law Judge in this 00:01:14.709 --> 00:01:19.980 proceeding. Joining me is Commissioner Genevieve Shiroma, 00:01:20.338 --> 00:01:23.778 the Commissioner assigned to this proceeding. At this 00:01:23.790 --> 00:01:27.650 time, Commissioner Shiroma will offer her opening comments. 00:01:29.829 --> 00:01:34.260 Uh thank you, Judge Rambo. Good afternoon, everyone. My name 00:01:34.269 --> 00:01:37.159 is Genevieve Shiroma. 00:01:37.159 --> 00:01:40.569 My pronouns are she/her. I am the lead commissioner 00:01:40.579 --> 00:01:44.209 for this proceeding. I'm pleased to join Judge Rambo 00:01:44.219 --> 00:01:48.519 today for the Public Participation Hearing. Uh, historic 00:01:48.528 --> 00:01:52.159 drought conditions across the State are improving. Uh, and 00:01:52.168 --> 00:01:55.109 the water supply is looking more promising. However, 00:01:55.799 --> 00:01:59.659 uh California continues to be, uh to face intense weather 00:01:59.668 --> 00:02:04.480 conditions. And water system resiliency is of great 00:02:04.489 --> 00:02:08.149 importance and must be balanced with affordability. 00:02:09.000 --> 00:02:11.919 So, Judge Jacob Rambo and I will be working together 00:02:11.929 --> 00:02:15.038 to carefully consider California American Water 00:02:15.050 --> 00:02:19.330 Company's request in this General Rate Case Proceeding. 00:02:20.159 --> 00:02:23.899 Towards ensuring that customer's bills reflect quality 00:02:23.909 --> 00:02:27.939 water service. Uh, as these General Rate Case Proceedings 00:02:27.949 --> 00:02:32.538 may have uh, a large impact on ratepayers. We at the 00:02:32.550 --> 00:02:36.210 California Public Utilities Commission take public participation 00:02:36.219 --> 00:02:40.169 very seriously. And work to ensure that customers have 00:02:40.179 --> 00:02:43.389 ample opportunity, understand the proceedings that 00:02:43.399 --> 00:02:47.629 affect them and voice any concerns or questions. Today, 00:02:47.639 --> 00:02:50.599 we have an opportunity for Cal-Am customers to learn 00:02:50.610 --> 00:02:54.618 more about the General Rate Case applications, and express 00:02:54.629 --> 00:02:57.528 their views. I look forward to hearing from all of 00:02:57.538 --> 00:03:01.088 you and from our presenters today. I would like to 00:03:01.099 --> 00:03:04.838 thank our court reporters today Lisa Welsh, Andrea 00:03:04.849 --> 00:03:08.909 Ross. For covering the Hearing and have the tough job 00:03:08.919 --> 00:03:12.210 of capturing everything that is said, for the record. 00:03:12.679 --> 00:03:16.189 Uh, thank you and back to you, Judge Rambo. Thank 00:03:16.199 --> 00:03:19.860 you. 00:03:19.860 --> 00:03:23.368 Thank you, Commissioner Shiroma. The purpose of today's 00:03:23.379 --> 00:03:26.580 Hearing is for the California Public Utilities Commission 00:03:26.788 --> 00:03:30.050 or CPUC. To hear from the public about the 00:03:30.058 --> 00:03:33.159 issues that are addressed in the California American 00:03:33.169 --> 00:03:37.429 application. The CPUC is the state agency that has 00:03:37.439 --> 00:03:40.929 regulatory authority over California American Water 00:03:40.939 --> 00:03:44.719 Company. A water utility providing service in several 00:03:44.729 --> 00:03:49.058 districts throughout the State. The CPUC is composed 00:03:49.069 --> 00:03:52.179 of 5 Commissioners who are appointed by the Governor 00:03:52.258 --> 00:03:57.000 and confirmed by the California State Senate. The Commissioners 00:03:57.008 --> 00:04:00.288 will render a final decision on each of the issues 00:04:00.300 --> 00:04:05.308 raised by the application. Fact sheets and other information 00:04:05.319 --> 00:04:08.939 about the application and this proceeding are available 00:04:08.949 --> 00:04:15.788 on the commission's website at www.cpuc 00:04:15.800 --> 00:04:23.660 .ca.gov/pph 00:04:25.230 --> 00:04:28.850 In addition to today's virtual Hearing, the Commission 00:04:28.858 --> 00:04:33.278 will be conducting in-person Hearings. On April 13, 00:04:33.619 --> 00:04:37.220 in-person hearings will be held at the Rancho Cordova 00:04:37.230 --> 00:04:43.420 City Hall at 2pm and 6pm. On April 25, Hearings 00:04:43.428 --> 00:04:48.670 will be held at 2 and 6pm at the Seaside City 00:04:48.678 --> 00:04:54.358 Hall. And on May 2, Hearings will be held at 2 and 00:04:54.369 --> 00:04:59.699 6pm at the Thousand Oaks City Hall. 00:04:59.699 --> 00:05:02.838 As the Administrative Law Judge assigned to this proceeding. 00:05:03.259 --> 00:05:06.910 My role is to evaluate the evidence and applicable 00:05:06.920 --> 00:05:10.790 law in this proceeding and to write a proposed decision 00:05:10.798 --> 00:05:14.629 based upon the record and evidence. The Commission 00:05:14.639 --> 00:05:18.670 will vote to adopt my proposed decision or they may 00:05:18.678 --> 00:05:22.420 vote to adopt the, adopt their own alternate decision. 00:05:24.250 --> 00:05:27.290 If you want to participate today, and provide public 00:05:27.298 --> 00:05:37.069 comments. You will need to call 800-857-1917. For English, 00:05:37.079 --> 00:05:44.730 enter passcode 1767567# and press *1 on your 00:05:44.738 --> 00:05:46.750 phone. 00:05:46.750 --> 00:05:54.189 For Spanish, enter passcode 3799627# and press *1 00:05:54.199 --> 00:05:57.850 on your phone. 00:05:57.850 --> 00:06:00.889 This will alert the operator, who will begin to queue 00:06:00.899 --> 00:06:05.108 the public speakers. When you're called upon, please 00:06:05.119 --> 00:06:09.048 unmute, unmute your phone and provide your name. Please 00:06:09.059 --> 00:06:13.088 spell your first and last name. If you're listening 00:06:13.100 --> 00:06:16.819 to the Hearing online while on the phone, please ensure 00:06:16.829 --> 00:06:20.338 you mute your streaming device, before speaking. There 00:06:20.350 --> 00:06:25.790 is a brief delay between the broadcast. If you are 00:06:25.798 --> 00:06:29.428 a public official, please notify the operator of your 00:06:29.439 --> 00:06:34.290 title and position in addition to your name. 00:06:34.290 --> 00:06:37.959 You can find the contact information on the slide, on 00:06:37.970 --> 00:06:43.040 the main screen. 00:06:43.040 --> 00:06:47.298 This line is only, these lines are only for providing 00:06:47.399 --> 00:06:53.509 the Commission with comments in this proceeding. 00:06:53.509 --> 00:06:57.548 Separate phone lines are available for customers to 00:06:57.559 --> 00:07:01.298 ask questions about this proceeding for their Bill. 00:07:02.428 --> 00:07:09.738 The telephone number is provided on the screen. 00:07:09.738 --> 00:07:13.269 If you cannot call in today, you may also submit written 00:07:13.278 --> 00:07:16.750 comments by visiting the link you see on the screen: 00:07:20.189 --> 00:07:25.778 apps.cpuc.ca 00:07:25.790 --> 00:07:36.559 .gov/c/A2207001 As 00:07:36.569 --> 00:07:40.519 of this afternoon, we have received 60 written public 00:07:40.528 --> 00:07:43.399 comments. 00:07:43.399 --> 00:07:46.420 Each of the parties in this proceeding has been allocated 00:07:46.428 --> 00:07:50.129 time to make a brief opening presentation. About the 00:07:50.139 --> 00:07:53.670 application and their positions. At this time, I will 00:07:53.678 --> 00:07:56.660 call upon the parties to begin their presentations. 00:07:56.988 --> 00:08:00.298 We will begin with the applicant, California American. 00:08:01.639 --> 00:08:04.670 Hi, Evan Jacobs from California American Water. My 00:08:04.678 --> 00:08:08.778 pronounces are he/him and his. And uh, leading the discussion 00:08:08.790 --> 00:08:12.769 on behalf of our utility today. I have previously thanked 00:08:12.778 --> 00:08:15.420 the PUC Staff and Commissioners, and Judge. As well 00:08:15.428 --> 00:08:18.488 as our, um interveners and other parties that are here 00:08:18.500 --> 00:08:21.528 today. And wanted to point out that Patrick Pilz, our 00:08:21.540 --> 00:08:25.290 customer service representative. Is available to customers 00:08:25.298 --> 00:08:29.309 if they have specific questions about customer service, 00:08:29.559 --> 00:08:32.690 conservation programs or some of our customer assistance 00:08:32.700 --> 00:08:35.639 programs. And if you're looking at the website, you 00:08:35.649 --> 00:08:43.548 can see his phone number below, 619-415-1170. We also 00:08:43.558 --> 00:08:46.268 have a great website, it's available in English and 00:08:46.278 --> 00:08:49.989 Spanish. Uh Google, California American Water and it 00:08:49.999 --> 00:08:53.327 should come right up for you. We do have specific pages 00:08:53.337 --> 00:08:57.817 on, um conservation customer assistance and other customer 00:08:57.827 --> 00:09:01.717 service rates, water quality, a lot of other good information 00:09:01.729 --> 00:09:04.438 there. So I've encouraged folks who are interested in learning 00:09:04.447 --> 00:09:06.798 more about their water, wastewater service to visit 00:09:06.808 --> 00:09:10.700 us there. California American Water serves 700,000 00:09:10.710 --> 00:09:14.129 residents in California. In portions of 10 different 00:09:14.139 --> 00:09:16.918 counties throughout the State. We also provide 00:09:16.928 --> 00:09:20.038 wastewater service in some areas. Our requests that we're 00:09:20.048 --> 00:09:22.509 discussing today varies in each area. So it's important 00:09:22.519 --> 00:09:25.840 to understand the local rates also vary, and our request 00:09:25.849 --> 00:09:29.379 differs in different areas. California American Water 00:09:29.389 --> 00:09:32.649 files an application like the one we have today, once 00:09:32.658 --> 00:09:35.678 every 3 years. To set our budgets and design rates. 00:09:35.918 --> 00:09:38.538 The Commission then conducts a detailed review of our 00:09:38.548 --> 00:09:43.210 information and ultimately approves, modifies or rejects 00:09:43.219 --> 00:09:47.070 our requests. The current application is to set rates 00:09:47.080 --> 00:09:51.649 for January 24-December 2026. And we're 00:09:51.658 --> 00:09:55.158 requesting over $400 million in capital investment 00:09:55.168 --> 00:09:59.379 and renewal funding. It was originally filed in July 00:09:59.389 --> 00:10:06.259 of 2022. On January 27, 2023, we filed an update to 00:10:06.269 --> 00:10:10.500 our application, incorporating 2 rate design proposals. 00:10:10.509 --> 00:10:14.570 The Water Resources Sustainability Plan and the Monterey- 00:10:14.580 --> 00:10:19.288 Style Water Revenue Adjustment Mechanism. A key element 00:10:19.298 --> 00:10:21.830 of this updated General Rate Case request. Is the Water 00:10:21.840 --> 00:10:26.009 Resources Sustainability Plan. Which is a comprehensive 00:10:26.019 --> 00:10:29.019 set of proposals designed to promote water use efficiency 00:10:29.029 --> 00:10:33.178 and sustainability, improve affordability and provide 00:10:33.190 --> 00:10:36.149 real protections for our customers. By ensuring that 00:10:36.158 --> 00:10:39.389 volumetric base rates collect only the revenues authorized 00:10:39.399 --> 00:10:43.250 by the Commission. The customer use exceeds forecast 00:10:43.259 --> 00:10:46.769 sales, additional revenue will be returned to customers 00:10:46.779 --> 00:10:50.298 through a credit. Alternatively, if customer use is 00:10:50.308 --> 00:10:53.029 lower than forecasted sales, the difference will be 00:10:53.038 --> 00:10:57.298 collected through a surcharge. The Water Resource Sustainability 00:10:57.308 --> 00:11:00.840 Plan establishes customer rates that approximate as 00:11:00.849 --> 00:11:04.279 closely as possible. Actual customer use during the 00:11:04.288 --> 00:11:07.558 3 year rate case cycle. And provide for regular 00:11:07.570 --> 00:11:10.918 sales forecast updates to help mitigate variances from 00:11:10.928 --> 00:11:13.950 that. California American Water has worked diligently 00:11:13.960 --> 00:11:16.440 to provide a comprehensive set of proposals under the 00:11:16.450 --> 00:11:19.379 Water Resources Sustainability Plan. That will work 00:11:19.389 --> 00:11:21.840 in conjunction to provide the best outcome for our 00:11:21.849 --> 00:11:26.330 customers. Want to take a moment and talk about water 00:11:26.340 --> 00:11:29.418 supplies. As everyone knows, our State has received 00:11:29.428 --> 00:11:32.168 unprecedented amounts of rain and snow this Winter. 00:11:32.690 --> 00:11:35.750 The result is that much of the State is no longer in 00:11:35.759 --> 00:11:38.808 a drought, and our water supplies in the areas around 00:11:38.820 --> 00:11:42.678 the state are recharging and recovering. That said, 00:11:42.690 --> 00:11:45.418 we know that climate change is increasing the length 00:11:45.428 --> 00:11:48.840 and severity of droughts. Between the extremely wet 00:11:48.849 --> 00:11:52.820 Winters we had like this one this year. It's important 00:11:52.830 --> 00:11:55.820 for all of our customers to continue to use water efficiently, 00:11:56.340 --> 00:12:00.219 and we offer a variety of free conservation programs. 00:12:00.229 --> 00:12:02.700 Including home water use surveys, rebates for turf 00:12:02.710 --> 00:12:06.649 removal and appliance rebates. Visit our website, we 00:12:06.658 --> 00:12:08.489 have different programs in each area. And we'd love 00:12:08.500 --> 00:12:11.149 to have you join us and participate. We also do a series 00:12:11.158 --> 00:12:15.460 of great educational webinars every month for customers. 00:12:16.210 --> 00:12:18.538 We also recognize that everyone needs access to water 00:12:18.548 --> 00:12:21.580 service for health and safety. To support the affordability 00:12:21.590 --> 00:12:23.889 of water service for residential customers, we have 00:12:23.899 --> 00:12:27.649 several assistance programs. The Customer Assistance 00:12:27.658 --> 00:12:30.668 Program, CAP, provides eligible customers a discount 00:12:30.678 --> 00:12:34.950 of 20 to 30% for essential service. And I'm noticing 00:12:34.960 --> 00:12:37.779 now that I have some slides, but I don't see them up. 00:12:37.788 --> 00:12:39.229 I don't know if we could put them up and some of 00:12:39.239 --> 00:12:42.298 the information is there and may be good for folks 00:12:42.308 --> 00:12:46.668 to capture. Um, the customer assistance program is a 00:12:46.678 --> 00:12:49.519 great one that discounted 20 to 30% every month on 00:12:49.529 --> 00:12:52.820 the bill. In this application, we are proposing increasing 00:12:52.830 --> 00:12:56.058 those discounts. There's a program that launched last 00:12:56.070 --> 00:12:59.450 year called the Low-Income Household Water Assistance 00:12:59.460 --> 00:13:04.000 Program known as LIHWAP for short. It's available to all of 00:13:04.009 --> 00:13:06.889 our customers throughout the State, and available to 00:13:06.899 --> 00:13:09.460 the utility customers of other utilities throughout 00:13:09.469 --> 00:13:13.750 the State. It currently has funding for up to $15,000 00:13:13.759 --> 00:13:17.609 per qualified customer. To help with past due arrearages 00:13:17.619 --> 00:13:21.080 as well as to help make future payments. It's run on 00:13:21.090 --> 00:13:23.379 a county level. I would encourage everyone again to 00:13:23.389 --> 00:13:25.769 visit our website. And find out more information about 00:13:25.779 --> 00:13:27.960 how the program is administered in the county you 00:13:27.969 --> 00:13:31.029 live. And if you do have uh, arrearages or struggling with your 00:13:31.038 --> 00:13:34.058 water bill. Take advantage of that program as well, 00:13:34.070 --> 00:13:39.619 the CAP program. We also do uh, offer hardship programs 00:13:39.629 --> 00:13:44.359 in some of our districts. And uh, offer other programs 00:13:44.369 --> 00:13:47.479 and services that you can find on our website. 00:13:48.440 --> 00:13:51.099 So in addition to finding rates, conservation customer 00:13:51.109 --> 00:13:54.019 assistance on our website. Uh, I think we were able 00:13:54.029 --> 00:13:59.580 to provide Patrick Pilzs phone number, which is 619-415-1170. 00:13:59.700 --> 00:14:01.928 To any customer who wants to follow up with the company 00:14:01.940 --> 00:14:06.440 on specific questions. With that, I thank you to everyone 00:14:06.450 --> 00:14:10.009 who is in attendance. And we'll hand it back to Judge 00:14:10.019 --> 00:14:14.418 Rambo, thank you. 00:14:14.418 --> 00:14:18.119 Thank you. We'll now call upon a representative of the 00:14:18.129 --> 00:14:21.428 Public Utilities Commission, Public Advocate's Office 00:14:21.820 --> 00:14:33.428 to make a presentation. 00:14:33.428 --> 00:14:37.149 Thank you, Your Honor. Good afternoon, my name 00:14:37.158 --> 00:14:40.389 is Cortney Sorensen, a Senior Utilities Engineer with the 00:14:40.399 --> 00:14:44.259 Public Advocates Office. I am leading and coordinating 00:14:44.269 --> 00:14:47.450 the GRC review team. The Public Advocates Office 00:14:47.460 --> 00:14:50.099 is an independent office within the California Public 00:14:50.109 --> 00:14:53.090 Utilities Commission that represents the interests 00:14:53.099 --> 00:14:57.009 of ratepayers. Our statutory mission is to obtain the 00:14:57.019 --> 00:14:59.820 lowest possible rate for service, consistent with a 00:14:59.830 --> 00:15:04.099 reliable and safe service level. The Public Advocate's 00:15:04.109 --> 00:15:07.750 Office has a multidisciplinary staff with engineers 00:15:07.759 --> 00:15:12.029 economics, finance and accounting expertise. At this 00:15:12.038 --> 00:15:15.658 proceeding, thirteen experts including 4 engineers, 3 00:15:15.668 --> 00:15:19.469 financial experts, 4 regulation experts and 2 00:15:19.479 --> 00:15:22.979 attorneys are reviewing Cal-Am's current rate increase 00:15:22.989 --> 00:15:28.009 application. Our testimony will present analysis and 00:15:28.019 --> 00:15:31.308 recommendations on various issues including operations 00:15:31.320 --> 00:15:35.928 expense, capital investment, sales rate design and 00:15:35.940 --> 00:15:40.399 taxes. In addition to specific topics, the report will 00:15:40.408 --> 00:15:44.940 also focus on the following areas. First, the rate 00:15:44.950 --> 00:15:47.979 making process should be transparent to decision makers 00:15:47.989 --> 00:15:51.729 and ratepayers. And encourage utilities to operate efficiently 00:15:51.869 --> 00:15:56.149 and within a reasonable budget. Second, as a substitute 00:15:56.158 --> 00:15:58.950 for competition, the Commission must ensure that Cal-Am 00:15:59.210 --> 00:16:02.428 does not view this position as a natural monopoly. 00:16:03.440 --> 00:16:05.808 And finally, the Commission should limit the use of 00:16:05.820 --> 00:16:09.229 alternative rate making mechanisms that result in surcharges 00:16:09.239 --> 00:16:12.779 on customer bills. 00:16:12.779 --> 00:16:15.849 You will be able to view our testimony after Thursday, 00:16:15.859 --> 00:16:19.960 April 13, on the Commission's website at www. 00:16:19.969 --> 00:16:23.519 cpuc.ca.gov And 00:16:23.529 --> 00:16:27.259 click on the Public Advocates Office link. If you 00:16:27.269 --> 00:16:31.330 have any questions, you can contact me at csn@ 00:16:31.340 --> 00:16:35.700 cpcu.ca.gov Thank you. 00:16:39.619 --> 00:16:44.750 Thank you. The City of Thousand Oaks is also a party to 00:16:44.759 --> 00:16:47.489 this proceeding. I will call upon their representative 00:16:47.500 --> 00:16:53.450 to, to make a presentation at this time. 00:16:53.450 --> 00:16:58.340 Thank you, uh Judge Rambo and, and Commissioner Shiroma for the 00:16:58.349 --> 00:17:02.710 opportunity to speak today. I'm Jay Spurgeon, a retired 00:17:02.719 --> 00:17:04.959 Public Works Director for the City of Thousand Oaks, and 00:17:04.969 --> 00:17:09.088 currently assisting the city as a Consultant on this 00:17:09.098 --> 00:17:13.358 uh, Rate Case. Next slide, please. 00:17:13.358 --> 00:17:18.557 There are 3 main water purveyors in Thousand Oaks. On 00:17:18.567 --> 00:17:23.229 this map the service areas, the service area shown 00:17:23.239 --> 00:17:28.769 for Cal-Am is in orange. For the city, it's shown 00:17:28.779 --> 00:17:33.489 in blue. And for a CalWater Service Company, uh in tan. 00:17:35.140 --> 00:17:38.289 Next please. 00:17:38.289 --> 00:17:41.989 Cal-Am is the largest purveyor, followed by the city and 00:17:42.000 --> 00:17:46.088 CalWater. The city believes there should be water 00:17:46.098 --> 00:17:51.180 pricing equity. That is residents and businesses should 00:17:51.189 --> 00:17:55.939 not have to pay significantly more for water, just because 00:17:55.949 --> 00:18:02.618 they're in a different service area. Next. 00:18:02.618 --> 00:18:06.759 The city believes that the actual costs for providing 00:18:06.769 --> 00:18:11.670 water service are similar for all 3 purveyors. Including 00:18:11.910 --> 00:18:16.670 water supply, infrastructure, operations and maintenance. 00:18:18.279 --> 00:18:22.868 Therefore, costs should be equitable for all residents 00:18:22.880 --> 00:18:27.949 and businesses throughout Thousand Oaks. 00:18:27.949 --> 00:18:31.689 Next slide, please. 00:18:31.689 --> 00:18:37.529 Cal-Am's GRC proposal would result in more than 20% 00:18:37.769 --> 00:18:41.650 cumulative rate increases over the next 3 years, 00:18:42.880 --> 00:18:47.229 and this seems excessive to us. Compared to recent and 00:18:47.239 --> 00:18:51.219 expected future city rate increases of only 1% per 00:18:51.229 --> 00:18:53.098 year. 00:18:53.098 --> 00:18:57.949 Also note that purchase water increases are in addition 00:18:59.078 --> 00:19:03.598 to those noted here. 00:19:03.598 --> 00:19:07.140 Next. 00:19:07.140 --> 00:19:11.279 Cal-Am's proposed rate design 00:19:11.279 --> 00:19:15.818 results in significant inequities in customer water 00:19:15.828 --> 00:19:21.199 bill increases, depending on their water usage. As you 00:19:21.209 --> 00:19:28.400 can see from this table. The 1% proposed increase for 00:19:28.410 --> 00:19:33.059 an average residential customer shown in the uh public 00:19:33.068 --> 00:19:37.009 participation hearing notice for this meeting doesn't 00:19:37.019 --> 00:19:41.608 tell the whole story. So we respectfully ask the 00:19:41.618 --> 00:19:46.078 Commission to require Cal-Am to propose a more equitable 00:19:46.088 --> 00:19:51.880 rate design. Next. 00:19:51.880 --> 00:19:56.598 Cal-Am rates are already the highest of the 3 water 00:19:56.608 --> 00:20:02.689 purveyors in the City of Thousand Oaks. In this rate case, 00:20:02.699 --> 00:20:07.140 we asked the Commission to consider water equity for 00:20:07.150 --> 00:20:11.348 Cal-Am customers in Thousand Oaks. 00:20:11.348 --> 00:20:14.420 Uh, if there's still additional time for me. I could 00:20:14.430 --> 00:20:19.078 I would like to um, put up one more slide? 00:20:19.078 --> 00:20:22.269 That would be the last slide on imported water costs. 00:20:26.709 --> 00:20:33.170 And keep going and one more. Thank you. 00:20:33.170 --> 00:20:36.818 The largest cost in the city's water budget, about 00:20:36.828 --> 00:20:42.229 70% of it is purchased imported water. 00:20:42.229 --> 00:20:45.019 And we, we believe that this is similar for Cal-Am 00:20:45.029 --> 00:20:49.479 and CalWater. And uh, Cal-Am and CalWater Service, yes. 00:20:50.250 --> 00:20:55.269 Imported water is expected to increase 3 to 5% per 00:20:55.279 --> 00:20:59.088 year in the future. As you can see in this chart from, 00:20:59.420 --> 00:21:03.259 provided by the Calleguas Municipal Water District. Who is the 00:21:03.269 --> 00:21:09.150 wholesale imported, importer for Thousand oaks. But this 00:21:09.160 --> 00:21:16.019 equates to adding anywhere from 2 to 3.5% per year 00:21:16.449 --> 00:21:21.680 on top of all other increases. Now for Cal-Am, we 00:21:21.689 --> 00:21:25.680 understand that purchase water increases are passed 00:21:25.689 --> 00:21:32.289 through outside of the General Rate Case process. But 00:21:33.500 --> 00:21:38.660 the significant impact on water bills from these increased 00:21:38.670 --> 00:21:43.209 costs should be acknowledged and shared with customers. 00:21:43.219 --> 00:21:49.358 And again, I thank you for the opportunity to share 00:21:49.368 --> 00:21:54.390 our concerns and some, some slides uh during this Hearing 00:21:54.400 --> 00:22:00.039 today. Thank you. Thank you. I will now call upon the 00:22:00.049 --> 00:22:04.199 Monterey Peninsula Water Management District to make 00:22:04.209 --> 00:22:08.969 a presentation. 00:22:08.969 --> 00:22:11.939 Uh thank you, Judge Rambo. Can you hear me all right? 00:22:13.519 --> 00:22:18.578 Yes? Yes, go ahead. Thank you. My name is Fran Farina. 00:22:19.578 --> 00:22:23.949 I'm with the law firm of De Lay & Laredo. De Lay & 00:22:23.959 --> 00:22:27.789 Laredo is General Counsel to the Monterey Peninsula 00:22:27.799 --> 00:22:31.150 Water Management District. 00:22:31.150 --> 00:22:34.529 The district is a public agency that was formed in 00:22:34.539 --> 00:22:39.900 1978, and serves over 100,000 people in the Monterey 00:22:39.910 --> 00:22:45.019 Peninsula area. Our functions include augmenting the 00:22:45.029 --> 00:22:50.939 water supply, promoting water conservation, fostering 00:22:50.949 --> 00:22:55.739 environmental qualities of the Carmel River. Providing 00:22:55.750 --> 00:23:00.699 integrated management of ground and surface water, and 00:23:00.709 --> 00:23:05.160 promoting water reuse and reclamation. 00:23:05.160 --> 00:23:09.880 Our water supply comes primarily from native groundwater 00:23:09.890 --> 00:23:14.868 in the Seaside Basin, the Carmel River and water from 00:23:14.880 --> 00:23:20.160 the Pure Water Monterey. A joint project between 00:23:20.170 --> 00:23:25.088 MPWMD and Monterey One Water. Additional water comes 00:23:25.098 --> 00:23:28.858 from aquifer storage and recovery, and the Sand City 00:23:28.868 --> 00:23:34.479 desalination facility. California American Water acquired 00:23:34.489 --> 00:23:39.930 the area water system in 1966. There is an existing 00:23:39.939 --> 00:23:44.160 well field for extracting Carmel River water, and a 00:23:44.170 --> 00:23:49.279 separate well field in Seaside. At one time, Cal-Am 00:23:49.608 --> 00:23:54.989 took 14,000 acre feet per year from the Carmel River, 00:23:55.368 --> 00:24:00.709 and over 5,000 acre feet from the Seaside Basin. Both 00:24:00.719 --> 00:24:06.818 resources are now severely constrained. Issues of concern 00:24:06.828 --> 00:24:12.910 to MPWMD in this case include the allocation of 00:24:12.920 --> 00:24:18.979 costs to customers statewide. Monterey main's affordability 00:24:18.989 --> 00:24:26.469 ratio is 40% to 300% worse than other Cal-Am districts 00:24:26.660 --> 00:24:32.519 without any consideration for this disparity. We are 00:24:32.529 --> 00:24:36.400 concerned with the various subsidies between customer 00:24:36.410 --> 00:24:41.789 classes, with consolidation of transmission and distribution 00:24:41.799 --> 00:24:48.838 assets. With the proposed increase to the fixed meter charge 00:24:49.039 --> 00:24:52.900 with the potential to reduce the effectiveness of local 00:24:52.910 --> 00:24:57.769 conservation efforts. We are concerned with the proposed 00:24:57.779 --> 00:25:02.279 decrease in conservation program funding, specifically 00:25:02.289 --> 00:25:06.680 for the Monterey area. And finally, we are concerned 00:25:06.689 --> 00:25:11.500 with operational deficiencies in Cal-Am's overall system. 00:25:13.108 --> 00:25:18.009 ·MPWMD's General Manager will present in-person at 00:25:18.019 --> 00:25:22.838 the April 25 Public Forums in Seaside, California. 00:25:23.199 --> 00:25:26.969 We encourage the public to attend either the 2pm 00:25:27.049 --> 00:25:32.809 or the 6pm session at Seaside City Hall. For additional 00:25:32.818 --> 00:25:36.309 information on Monterey Peninsula Water Management 00:25:36.318 --> 00:25:43.259 District. Please visit our website at www.mpwmd 00:25:43.269 --> 00:25:47.920 .net. And we thank Administrative Law Judge Rambo 00:25:47.930 --> 00:25:52.529 and Commissioner Shiroma today. Plus uh, Staff that has 00:25:52.539 --> 00:25:56.239 assisted in providing us this opportunity to present. 00:25:56.250 --> 00:26:01.009 Thank you. 00:26:01.009 --> 00:26:05.289 Thank you. At this time, I'll call upon the California 00:26:05.299 --> 00:26:09.108 Water Efficiency Partnership to make their opening 00:26:09.118 --> 00:26:21.160 presentation. 00:26:21.160 --> 00:26:24.410 If you could please, if the speaker could please unmute. 00:26:24.420 --> 00:26:27.910 We, we aren't able to hear you. 00:26:27.910 --> 00:26:30.759 I'm sorry. 00:26:30.759 --> 00:26:33.939 That would help, wouldn't it? Uh, my name is Maryanne 00:26:33.949 --> 00:26:37.029 Dickinson and I am representing the California Water 00:26:37.039 --> 00:26:41.259 Efficiency Partnership, also known as CalWEP. And CalWEP 00:26:41.529 --> 00:26:45.019 is a party to this proceeding. I'm the former Executive 00:26:45.029 --> 00:26:49.209 Director and I'm now consultant to CalWEP. Uh, CalWEP is 00:26:49.219 --> 00:26:52.650 a membership-based nonprofit organization committed 00:26:52.660 --> 00:26:56.029 to maximizing urban water efficiency and conservation 00:26:56.039 --> 00:26:59.809 throughout California. Partly in response to Executive 00:26:59.818 --> 00:27:03.279 Orders by the Governor of California. But also mandatory 00:27:03.289 --> 00:27:06.630 water conservation requirements as enacted by the California 00:27:06.640 --> 00:27:10.420 Legislature. We are interested in this rate case, because 00:27:10.430 --> 00:27:13.699 we are concerned that utility conservation expenditures 00:27:13.709 --> 00:27:17.160 and reductions in demand get properly dealt with. In 00:27:17.170 --> 00:27:20.660 order to effectively promote water supply or compliance 00:27:20.670 --> 00:27:24.338 with state law. And these conservation investments are 00:27:24.348 --> 00:27:27.769 always cheaper than obtaining new sources of supply, 00:27:27.838 --> 00:27:30.719 and thus should be incentivized. We may have had a 00:27:30.729 --> 00:27:35.420 great water year, and so far in 2023. But drought will continue 00:27:35.430 --> 00:27:38.608 to be in our future. And the State Legislative Conservation 00:27:38.618 --> 00:27:42.029 Requirements and utilities will be enforced despite 00:27:42.039 --> 00:27:46.250 this year's rain. Now, customers are understandably 00:27:46.259 --> 00:27:49.239 concerned about rising water rates, which is a phenomenon 00:27:49.250 --> 00:27:53.088 all over the country. But there is a serious misconception 00:27:53.098 --> 00:27:56.338 that I want to talk about. Uh, about the role that conservation 00:27:56.348 --> 00:27:59.789 plays and how it affects rates. Because consumers often 00:27:59.799 --> 00:28:04.779 complain that conservation makes rates rise. CalWEP together 00:28:04.789 --> 00:28:07.299 with its sister organization, the National Alliance 00:28:07.309 --> 00:28:10.328 for Water Efficiency. Have carefully studied this issue 00:28:10.338 --> 00:28:13.709 over the past decade. And we have examined water utility 00:28:13.719 --> 00:28:18.539 systems in California, Colorado and Arizona to determine 00:28:18.549 --> 00:28:21.539 what the effect of conservation has been on their rates. 00:28:21.890 --> 00:28:26.068 The studies undertaken especially a 2018 study of the 00:28:26.078 --> 00:28:30.049 Los Angeles Department of Water and Power. All conclusively 00:28:30.059 --> 00:28:33.858 prove that on a long term basis, water conservation 00:28:33.868 --> 00:28:37.098 programs have the effect of reducing consumer rates 00:28:37.108 --> 00:28:41.098 over time. Yes, short term rate adjustments are often 00:28:41.108 --> 00:28:44.400 needed. But the cumulative effect, long term is to 00:28:44.410 --> 00:28:47.519 keep rates lower than they would have been had conservation 00:28:47.529 --> 00:28:51.410 not taken place. This occurs because additional water 00:28:51.420 --> 00:28:54.880 supply capacity is not needed when demand is reduced 00:28:54.890 --> 00:28:58.759 over time. Thus saving ratepayers money in the future. 00:28:59.500 --> 00:29:02.049 In the case of Los Angeles, our study found that the 00:29:02.059 --> 00:29:05.309 reduction in L.A.'s water use. Has helped meet the needs 00:29:05.318 --> 00:29:09.239 of a service area population that grew from 3.5 million 00:29:09.250 --> 00:29:14.430 in 1990 to 4 million in 2016. Demand was greatly reduced 00:29:14.439 --> 00:29:17.640 by conservation programs. Consumer demand is now less 00:29:17.650 --> 00:29:20.910 than it was in L.A. in 1970, but with half a 00:29:20.920 --> 00:29:25.019 million more people. Their water supply costs of $11 00:29:25.029 --> 00:29:30.189 billion were thereby avoided from 1990 to 2016. And 00:29:30.199 --> 00:29:34.568 thus customer water bills were reduced by over 26% 00:29:34.578 --> 00:29:38.459 over what they would have been in 2016, if the conservation 00:29:38.469 --> 00:29:43.059 programs had not taken place. So for this reason, CalWEP 00:29:43.328 --> 00:29:46.338 is concerned that the conservation program expenditures 00:29:46.348 --> 00:29:49.338 and lower consumer demand, which obviously results 00:29:49.348 --> 00:29:53.130 in lower revenues to cover costs. If they be compensated 00:29:53.140 --> 00:29:56.719 in the rate base. Which thus encourages more conservation 00:29:56.729 --> 00:30:00.118 to be achieved. Also lowering utility system costs 00:30:00.130 --> 00:30:04.348 and ratepayer bills over the long term. Allowing this 00:30:04.358 --> 00:30:07.098 decoupling revenue adjustment means that it can work 00:30:07.108 --> 00:30:10.328 in the other direction as well. Adjusting the utility 00:30:10.338 --> 00:30:13.479 revenue collection to the customer's benefit when collected 00:30:13.489 --> 00:30:16.920 revenue would exceed the water supply costs. And if 00:30:16.930 --> 00:30:20.420 conservation further reduces utility costs, that kind 00:30:20.430 --> 00:30:24.199 of consumer payback would be welcome. And note that 00:30:24.209 --> 00:30:27.059 the Los Angeles Department of Water and Power has adopted 00:30:27.068 --> 00:30:30.779 a similar decoupling mechanism. So this is, this is 00:30:30.789 --> 00:30:33.818 something that is certainly in effect, even in the public 00:30:33.828 --> 00:30:38.858 agency side. Therefore, CalWEP urges the CPUC to adopt 00:30:38.868 --> 00:30:43.140 the WRSP Revenue Adjustment Mechanism. As listed 00:30:43.150 --> 00:30:45.930 and described in the Cal American Water Company General 00:30:45.939 --> 00:30:49.509 Rate Case application. Um, we thank you for the opportunity 00:30:49.519 --> 00:30:53.229 to let us comment. 00:30:53.229 --> 00:30:56.108 Thank you. 00:30:56.108 --> 00:30:59.390 The National Association of Water companies is a party 00:30:59.400 --> 00:31:01.969 to this proceeding. But they have elected not to make 00:31:01.979 --> 00:31:05.779 a presentation today. So now we are ready to hear from 00:31:05.789 --> 00:31:09.250 the public. Commissioner Shiroma and I will pay close 00:31:09.259 --> 00:31:12.150 attention to the opinions expressed during today's 00:31:12.160 --> 00:31:16.598 Public Hearing. I want to remind you that a court reporter 00:31:16.608 --> 00:31:19.489 will be transcribing everything that is said today. 00:31:20.949 --> 00:31:25.140 The court reporters are also on the line. When speaking 00:31:25.880 --> 00:31:30.250 please speak slowly and clearly, so that the reporter 00:31:30.930 --> 00:31:35.930 and interpreters can capture everything you say. Before 00:31:35.939 --> 00:31:40.309 speaking, please state and then also spell both your 00:31:40.318 --> 00:31:44.880 first and last name, and let us know which city you 00:31:44.890 --> 00:31:49.390 are from. The written transcript of today's hearing 00:31:49.400 --> 00:31:53.209 will be posted publicly on the docket card of this 00:31:53.219 --> 00:31:58.608 proceeding. As a reminder, if you want to provide comments 00:31:58.750 --> 00:32:09.068 please call 800-857-1917. For English, enter the 00:32:09.078 --> 00:32:18.568 passcode 1767567# and press *1. For Spanish, enter passcode 00:32:18.578 --> 00:32:27.059 3799627# and press *1 on your phone. When you are 00:32:27.068 --> 00:32:31.338 called upon to speak unmute your phone, and record your 00:32:31.348 --> 00:32:36.088 name when prompted. 00:32:36.088 --> 00:32:41.809 For Spanish commenters, please put your comment into 00:32:41.818 --> 00:32:45.719 blocks of time pausing regularly. To allow the interpreter 00:32:45.729 --> 00:32:51.219 to hear, and then appropriately interpret your comments. 00:32:54.439 --> 00:32:58.828 A chime will be sounded when you have spoken for 3 00:32:58.838 --> 00:33:03.009 minutes. Please at that time, wrap up your comments. 00:33:03.309 --> 00:33:07.368 We want to accommodate everyone desiring to speak today. 00:33:13.039 --> 00:33:18.459 The, I will now call upon the operator to uh, call upon 00:33:18.469 --> 00:33:22.328 our first commenter. 00:33:22.328 --> 00:33:25.519 Thank you. The public comment telephone line is now 00:33:25.529 --> 00:33:28.660 open. For those on the phone, if you wish to speak during 00:33:28.670 --> 00:33:31.229 the public comment period. Please unmute your phone, 00:33:31.239 --> 00:33:34.689 press *1, record your first and last name slowly 00:33:34.699 --> 00:33:38.160 and clearly when prompted. Our first caller is Marli 00:33:38.170 --> 00:33:44.269 Melton. You may go ahead. 00:33:44.269 --> 00:33:47.130 Hello. Can you hear me? 00:33:47.130 --> 00:33:51.689 Hello? Yes, you may speak. 00:33:51.689 --> 00:33:57.068 Thank you. This is Marli Melton, M. A. R. L. I. M. E. 00:33:57.078 --> 00:34:02.078 L. T. O. N, and I'm Monterey System ratepayer in Carmel 00:34:02.088 --> 00:34:06.529 Valley. Please do not grant the rate increases that 00:34:06.539 --> 00:34:11.519 Cal-Am has requested. They far exceed the rate of inflation 00:34:11.530 --> 00:34:18.000 and reasonable cost forecasts. CPUC regulations link profits 00:34:18.010 --> 00:34:22.239 to capital investment. So Cal-Am lobbies public officials 00:34:22.250 --> 00:34:26.800 and agencies vigorously. For wasteful, unneeded capital 00:34:26.809 --> 00:34:31.300 projects. Often public officials never even learn accurate 00:34:31.309 --> 00:34:36.349 details about better, lower cost options. Cal-Am even 00:34:36.360 --> 00:34:40.139 wants us to pay for water we do not need or use. 00:34:40.579 --> 00:34:44.139 Please do not allow Cal-Am's version of decoupling or 00:34:44.148 --> 00:34:47.659 whatever name they are using for this practice. We 00:34:47.668 --> 00:34:52.409 already pay the most expensive water rates in the State. 00:34:52.739 --> 00:34:57.418 So we have to conserve and we are. Please do not require 00:34:57.429 --> 00:35:01.369 us to continue to subsidize Cal-Am's wasteful spending. 00:35:01.570 --> 00:35:05.309 Thank you. 00:35:05.309 --> 00:35:10.309 Thank you. 00:35:10.309 --> 00:35:14.559 We'll take our next commenter. My next caller is Walt 00:35:14.628 --> 00:35:16.769 Motley, 00:35:16.769 --> 00:35:20.628 you may go ahead. Uh, uh can you hear me 00:35:20.639 --> 00:35:23.289 now? 00:35:23.289 --> 00:35:27.148 Yes, you may go ahead. Yes, go ahead. Okay. Uh, yes. Um 00:35:27.438 --> 00:35:31.300 good afternoon Commissioners. Uh, my name is Wallace 00:35:31.309 --> 00:35:35.679 W. A. L. L. A. C. E. Last name Motley, M. O. T. 00:35:35.688 --> 00:35:40.780 L. E. Y. I live on the Monterey Peninsula and this is 00:35:40.789 --> 00:35:43.969 um, uh. What I'm referring to is the Cal-Am is asking 00:35:43.978 --> 00:35:55.300 for 18.7% for 2024, 5.5% for 2025, 5.3% for 2026. But 00:35:55.309 --> 00:35:59.050 why is Cal-Am even allowed additional rate increases outside 00:35:59.059 --> 00:36:03.668 the general rate increases? Is this Commission sufficiently 00:36:03.679 --> 00:36:08.159 aware of the cumulative totals to generally case uh, 00:36:08.168 --> 00:36:13.378 uh increases. Why did Cal-Am get an 11% increase starting 00:36:13.389 --> 00:36:18.079 last January? What justifies this last increase? Their 00:36:18.239 --> 00:36:20.739 increases have substantially surpassed the rate of 00:36:20.750 --> 00:36:25.840 inflation. Cal-Am has not produced one drop of new water. They 00:36:25.849 --> 00:36:28.829 had to be stopping illegally overdrafting, and almost 00:36:28.889 --> 00:36:32.639 destroying the Carmel River. And they were trying to 00:36:32.648 --> 00:36:35.719 build an environmentally destructive, costly and unneeded 00:36:35.789 --> 00:36:39.869 desalination plant. Up until recently, they were holding 00:36:39.878 --> 00:36:42.958 the Monterey Peninsula residents hostage. By refusing 00:36:42.969 --> 00:36:46.070 to sign the water purchase agreement for the award 00:36:46.079 --> 00:36:50.309 winning, Pure Water Monterey Recycled Water Expansion 00:36:50.320 --> 00:36:55.320 project. In short, Cal-Am has been a continually abusive 00:36:55.329 --> 00:36:59.599 neighbor. If it is too late to refuse this last 11% 00:36:59.610 --> 00:37:04.360 increase. It is only fair that you refuse any future 00:37:04.369 --> 00:37:08.289 increases until they are really justified. Thank you. 00:37:11.789 --> 00:37:16.780 Thank you. We call upon the next commenter. 00:37:16.780 --> 00:37:22.809 Our next caller is Carol Setinek, you may go ahead. 00:37:22.809 --> 00:37:29.188 I am Carol Setinek from Seaside, you can hear me? 00:37:29.188 --> 00:37:34.179 Yup. Yes, go ahead. All right. You spell that C. A. R. 00:37:34.188 --> 00:37:41.648 O. L. S as in Sam, E. T. I. N. E. K. 00:37:43.349 --> 00:37:48.878 Cal-Am is requesting to raise its rates 18.7% this year, 00:37:48.889 --> 00:38:01.708 5.5% in 2025, and 5.30% in uh, '26. They refused to sign the 00:38:01.719 --> 00:38:06.119 water purchase agreement until they were granted $10 00:38:06.128 --> 00:38:12.590 million. These increases are far above inflation and 00:38:12.599 --> 00:38:17.728 far above the cost of doing business. This corporation 00:38:17.739 --> 00:38:22.510 has been a calamity for Monterey Peninsula residents. 00:38:22.519 --> 00:38:27.099 That only replacing Cal-Am through eminent domain will 00:38:27.110 --> 00:38:33.208 solve. Please do not agree to their rate increase. 00:38:33.398 --> 00:38:37.739 Thank you. 00:38:37.739 --> 00:38:41.708 Thank you. You can call upon the next commenter. Our 00:38:41.719 --> 00:38:48.188 next caller is Dustin Kirk, you may go ahead. 00:38:48.188 --> 00:38:52.320 Hello. My name is Dustin Cook, Carmel Valley resident. 00:38:53.030 --> 00:39:01.128 That's D. U.S. T. I. N. C. O. O. K. Um, I look back 00:39:01.139 --> 00:39:07.869 3 years at my Cal-Am bill. And I, um at that point. And for 00:39:07.878 --> 00:39:16.418 500 gallons usage more 3 years ago. I, I now pay 00:39:16.429 --> 00:39:20.530 $20 a month more. In other words, I'm paying $20 a 00:39:20.539 --> 00:39:24.628 month more on this, this year than I did 3 years 00:39:24.639 --> 00:39:30.039 ago and I'm getting 500 gallons less. That's a 60% 00:39:30.050 --> 00:39:32.559 increase if you figure it on a per gallon basis. And 00:39:32.570 --> 00:39:35.478 I know there's many other basis. Everybody figures 00:39:35.489 --> 00:39:40.949 these things. Um, just to speak to the point that you 00:39:40.958 --> 00:39:44.668 guys are there to review this and see what's justified. 00:39:45.378 --> 00:39:48.750 I think from the tales that you're hearing now and 00:39:48.760 --> 00:39:51.989 the Thousand Oaks presentation. You can 00:39:52.000 --> 00:39:58.340 see that Cal-Am, Cal-Am's extraction is mostly for money, not water. 00:39:58.949 --> 00:40:02.289 And they're not above um, 00:40:02.289 --> 00:40:07.610 almost blackmail, if you will. So please do, um do review 00:40:07.619 --> 00:40:12.570 this, review because the next 3 rates coming up 00:40:12.579 --> 00:40:16.728 are pretty excessive. And we've just suffered an 11% 00:40:16.739 --> 00:40:20.260 increase in January, but I'm not sure what reason. 00:40:20.978 --> 00:40:25.208 Thank you for your time. 00:40:25.208 --> 00:40:29.289 Thank you. You may call up on the next commenter. 00:40:29.289 --> 00:40:32.750 The next caller is anonymous with Temple City. You 00:40:32.760 --> 00:40:36.219 may go ahead. Oh, can you hear me? 00:40:36.219 --> 00:40:40.418 Hello? Yes, we can hear you. If you can state and spell your first 00:40:40.429 --> 00:40:43.760 and last name. Thank you. Uh okay. I'm from Temple City. 00:40:43.769 --> 00:40:48.809 Uh, A. L. Last name, C, period. 00:40:48.809 --> 00:40:52.050 Uh we, we got a lot of free rain this year. And, uh 00:40:52.059 --> 00:40:54.918 they're still trying. We got tons of free rain this 00:40:54.929 --> 00:40:58.369 year and they're still trying to charge us for that. 00:40:58.659 --> 00:41:03.398 Uh, the tables that, uh that they sent me in your paragraph. 00:41:03.409 --> 00:41:08.760 You put um, uh table one, you put 9.9%. And then you 00:41:08.769 --> 00:41:15.188 put um, uh 6.24 and then 5.02. But on your table, your 00:41:15.199 --> 00:41:19.300 proposed table you, you put 5.05 instead 00:41:19.309 --> 00:41:23.289 of 9.29, I don't get that. And then the same thing with 00:41:23.300 --> 00:41:26.648 the, the second paragraph on the second table. You 00:41:26.659 --> 00:41:33.769 put 8.87%, yet you represented 4.58 for the 2024 year. 00:41:33.789 --> 00:41:36.590 But the other two years match. So you're talking uh, a 00:41:36.599 --> 00:41:43.458 percent increase uh, if you add that in 16.31 to 20.55%, 00:41:43.610 --> 00:41:51.500 in 3 years. Uh, then from 15.8 to 20.9% on your 2nd table, 00:41:51.519 --> 00:41:54.918 in 3 years. And here the U.S. government is trying 00:41:54.929 --> 00:42:00.260 to get inflation down to 2%. Uh, East Pasadena Water Company, 00:42:00.269 --> 00:42:03.539 our old water company was very conservative. They were 00:42:03.550 --> 00:42:08.769 billing us every 2 months. Uh, instead of Cal-Am coming around 00:42:08.780 --> 00:42:12.059 every month to go hire someone to read the meter. Every 00:42:12.070 --> 00:42:16.840 month and hire people to bill us every month. Is that 00:42:16.849 --> 00:42:22.429 cost saving? I hear the lady talk about water conservation 00:42:22.679 --> 00:42:26.579 saves money on our bill. If that's true, why are we 00:42:26.590 --> 00:42:31.369 getting increases every year from Cal-Am? Uh, we're also paying 00:42:31.378 --> 00:42:36.449 for the shareholders uh, as well as funding all these 00:42:36.458 --> 00:42:40.159 increases for the low-income people. It's coming out 00:42:40.168 --> 00:42:43.590 of the rate is not coming from Cal-Am's profits. That's 00:42:43.599 --> 00:42:49.360 gonna go to their shareholders. They want uh, for my 00:42:49.369 --> 00:42:56.559 area, they want $27 million to $28 million in 3 00:42:56.570 --> 00:43:02.699 years. For what, for what? Uh do they, do they document things 00:43:02.708 --> 00:43:05.119 that they're going to do? I want to see them document 00:43:05.128 --> 00:43:10.139 it and notarize the past year's projects in my area. 00:43:10.148 --> 00:43:13.668 Because they're hitting us for our area of this increase, 00:43:13.679 --> 00:43:18.019 and see how much this $27 million they're spending. 00:43:18.079 --> 00:43:21.909 I've watched them repair a leak out in the sidewalk 00:43:21.918 --> 00:43:27.438 there. Four men, four men to do the job. Took them 00:43:27.449 --> 00:43:31.458 about very quick, 3 to 4 hours to repair. Uh, I thought 00:43:31.469 --> 00:43:33.929 they were gonna dig up the sidewalk, the concrete sidewalk. 00:43:33.938 --> 00:43:37.728 No, they got a backhoe. They dug a hole across the 00:43:37.739 --> 00:43:43.289 street in the asphalt and then they ran a sleeve, a 00:43:43.300 --> 00:43:47.269 sleeve into a broken 00:43:47.269 --> 00:43:50.530 into the broken pipe. And it took them about 3-4 hours 00:43:50.539 --> 00:43:55.250 to fix the leak. Uh, does that require $26, $27 to $28 00:43:55.260 --> 00:43:59.079 million in my little area. That they're raising it to 00:43:59.090 --> 00:44:02.699 to fix something? Uh where, where does all that come 00:44:02.708 --> 00:44:07.530 from? I don't get the $28 million that being a corporation 00:44:07.539 --> 00:44:10.648 doesn't help either. Because they need to pay their 00:44:10.659 --> 00:44:14.648 all their presidents and all the shareholders, because 00:44:14.659 --> 00:44:18.820 they're on the stock exchange. Uh unfortunately, East 00:44:18.829 --> 00:44:21.188 Pasadena is a little mom and pop place, they had to 00:44:21.199 --> 00:44:26.320 sell out. Um, I think my time's up. But I wish 00:44:26.329 --> 00:44:29.978 everyone take consideration that their increases are 00:44:29.989 --> 00:44:34.309 really ridiculous, high. And here the government is trying 00:44:34.320 --> 00:44:37.699 to keep inflation down to 2% a year, I don't get it. 00:44:38.550 --> 00:44:41.760 Uh thank you for hearing me out, everybody. Um, thank 00:44:41.769 --> 00:44:45.978 you very much. Thank you. We'll call upon the next 00:44:45.989 --> 00:44:49.469 commenter. 00:44:49.469 --> 00:44:52.458 Our next caller is Melvin Stokes, you may go ahead. 00:44:53.590 --> 00:44:58.619 Good afternoon. Uh, Commissioner and the rest of the 00:44:58.639 --> 00:45:03.889 people on the line. I agree, I'm from Bellflower and 00:45:03.898 --> 00:45:08.918 my last name is spelled S. T. O. K. E. S. Melvin, 00:45:08.929 --> 00:45:12.340 M. E. L. V. I. N. And I agree with the last 00:45:12.349 --> 00:45:18.050 caller about the rate increase of almost $27 million. 00:45:18.059 --> 00:45:22.500 And then it comes down at the tables, the tables don't 00:45:22.510 --> 00:45:27.438 reflect the same as the, the proposal. Now, I've 00:45:27.449 --> 00:45:32.809 been in Bellflower since 2015. I bought my house in 00:45:32.820 --> 00:45:38.168 2015. I, if I'm not mistaken we had another water 00:45:38.179 --> 00:45:42.260 company come in. There was another water company present 00:45:42.458 --> 00:45:46.639 and then Bellflower Water took over that company. And 00:45:46.648 --> 00:45:50.769 each time, there was always a rate increase. And then 00:45:50.780 --> 00:45:54.090 I remember the proposal for this was about 2 years 00:45:54.099 --> 00:45:59.469 ago and I believe we had a Hearing, and that was also 00:46:00.010 --> 00:46:03.619 they're requesting an increase. It seems like to me, 00:46:05.628 --> 00:46:09.639 I'm not certain and I'm not making any accusations. But it seems 00:46:09.648 --> 00:46:14.269 like to me it's like, it's some kind of hidden ball, 00:46:14.280 --> 00:46:18.059 three-card Monte they playing. I buy the water company, 00:46:18.340 --> 00:46:22.949 I raise the, the rates, make my money, sell it. And 00:46:22.958 --> 00:46:26.250 then the next company comes in, they raise the water 00:46:26.260 --> 00:46:31.228 rates, they sell it. And it's all this time it's, 00:46:31.418 --> 00:46:36.829 it's no benefit to the consumer. Now I've asked for, 00:46:36.840 --> 00:46:40.539 I got a uh, a puddle that settles in the front of 00:46:40.550 --> 00:46:44.978 my lawn. And I've asked them to come out and check it. 00:46:45.239 --> 00:46:48.250 They said it's the city, the city says it's the water. 00:46:48.349 --> 00:46:51.059 I don't know who it is, I really don't care. I just 00:46:51.070 --> 00:46:55.449 want it fixed and they have never come out. I have 00:46:55.458 --> 00:46:58.659 a uh, a leaking hydrant. No one's ever come out to 00:46:58.668 --> 00:47:02.469 fix it. And I'm like the other gentleman, they've done 00:47:02.478 --> 00:47:06.619 some moderate work on the streets. Uh, they've leveled 00:47:06.628 --> 00:47:10.579 some other streets in front of the houses. And they 00:47:10.590 --> 00:47:14.849 told me mine would be 3 years away, before they 00:47:14.860 --> 00:47:17.760 were able to get to it. I'm only concerned about the 00:47:17.769 --> 00:47:21.320 rate increase right now and I don't think it's fair. 00:47:21.478 --> 00:47:25.320 And I hope that uh, the Public Utilities Commission 00:47:25.329 --> 00:47:28.760 denies this increase. Uh, but it was really kind of 00:47:28.769 --> 00:47:32.300 hard to tell whether the Public Utilities was for or 00:47:32.309 --> 00:47:36.739 against it. They didn't really come out and say. But 00:47:36.989 --> 00:47:39.489 uh, 00:47:39.489 --> 00:47:46.389 thank you for your time. 00:47:46.389 --> 00:47:49.389 Hello? We'll call upon the next. Thank you. We'll 00:47:49.398 --> 00:47:52.938 call upon the next commenter. And before we go to 00:47:52.949 --> 00:47:55.179 the next caller. Again, if you wish to speak during 00:47:55.188 --> 00:47:57.829 the public comment period. Please unmute your phone, 00:47:57.840 --> 00:48:00.989 press *1, and clearly state your first and last 00:48:01.000 --> 00:48:04.869 name slowly and clearly when prompted. Our next caller 00:48:04.878 --> 00:48:09.398 is Robin Durston, you may go ahead. 00:48:09.398 --> 00:48:13.449 Hi. Um, Robin R. O. B. I. N. Durston, D. U. R. 00:48:13.458 --> 00:48:19.110 S. T. O. N. I'm from Sacramento. Uh, 00:48:19.110 --> 00:48:21.829 I do not believe a water company should be run as a 00:48:21.840 --> 00:48:25.639 for-profit company. The stockholders and owners make 00:48:25.648 --> 00:48:29.309 too high a return and that's all they care about. Their 00:48:29.320 --> 00:48:33.929 main concern is their rate of profit. Water is a necessity 00:48:33.938 --> 00:48:37.139 and people have a right to clean safe water at a reasonable 00:48:37.148 --> 00:48:39.398 cost. 00:48:39.398 --> 00:48:43.199 They say they need to invest in the infrastructure, 00:48:43.539 --> 00:48:46.978 protect from known and emerging contaminants and expand 00:48:46.989 --> 00:48:49.769 water supplies. 00:48:49.769 --> 00:48:55.030 And the increased rates are for increased labor costs, 00:48:55.039 --> 00:49:00.269 and balancing demand and inflation. Have they done 00:49:00.280 --> 00:49:04.949 any of these things since the last rate increase? 00:49:04.949 --> 00:49:07.878 Wasn't there a law passed in Sacramento County, that 00:49:07.889 --> 00:49:11.688 all residents should have water meters? And why do we 00:49:11.699 --> 00:49:16.590 still have flat rate customers in the Fruit Ridge area, 00:49:16.599 --> 00:49:22.530 where I am? Uh, I believe they just use the water to 00:49:22.539 --> 00:49:25.769 buy up more small water companies across the State. 00:49:27.728 --> 00:49:30.809 Often these small water companies have problems that 00:49:30.820 --> 00:49:34.050 need fixing and then they raise the rates again. How 00:49:34.059 --> 00:49:37.958 many more water companies do they plan on buying this 00:49:37.969 --> 00:49:42.539 year? The rates are already high. I paid approximately 00:49:42.570 --> 00:49:47.489 $100 per month in the Summer months last year. 00:49:47.489 --> 00:49:50.389 My neighbors who rent, they don't water the trees. 00:49:50.769 --> 00:49:53.878 So many of the trees died and fell over in the Winter 00:49:53.889 --> 00:49:57.820 months. The renters are not allowed to plant gardens, 00:49:57.829 --> 00:50:01.958 because the cost of water is so high. The Fruit Ridge 00:50:01.969 --> 00:50:05.010 area is a very poor district. Inflation is high and 00:50:05.019 --> 00:50:09.329 we're not getting wage increases to keep up with inflation. 00:50:10.349 --> 00:50:13.289 No one drinks the water, it doesn't taste good. They 00:50:13.300 --> 00:50:17.329 either buy bottled water or use a filter. 00:50:17.329 --> 00:50:20.938 And there's no water equity in the rates, I don't live 00:50:20.949 --> 00:50:25.918 in the city. The Sac City water is significantly cheaper, 00:50:27.139 --> 00:50:32.438 it only goes up like 1% a year. And um, 00:50:32.438 --> 00:50:36.079 these water rates um, 00:50:36.079 --> 00:50:46.579 are going up 8.55% in 2025, and 7.93% in 2026. I do not 00:50:46.590 --> 00:50:49.619 believe they're justified in charging such a high rate 00:50:49.628 --> 00:50:54.148 increase. I wonder if they're just raising the rates, 00:50:54.159 --> 00:50:56.989 because we had all this rain. And they want to make 00:50:57.000 --> 00:51:00.429 up for their losses for not us, not using as much water. 00:51:01.269 --> 00:51:07.119 Um, please protect the public and deny such large rate 00:51:07.128 --> 00:51:11.929 increases. Thank you. 00:51:11.929 --> 00:51:15.969 All right, thank you. At this time, we are going to 00:51:15.978 --> 00:51:20.699 take a brief 5 minute recess. While we are 00:51:20.708 --> 00:51:24.739 on recess. If anyone, if, if there are any additional 00:51:24.750 --> 00:51:27.208 commenters. I'd encourage you to please call in at 00:51:27.219 --> 00:51:35.898 this time. We will return at 3:07pm. We are off the 00:51:35.909 --> 00:51:45.769 record. 00:51:45.769 --> 00:51:53.199 The Commission will be in order. 00:51:53.199 --> 00:51:56.128 Operator, do we have any additional speakers in queue? 00:51:58.039 --> 00:52:05.168 Yes. Uh Saoirse Folsom, you may go ahead. 00:52:05.168 --> 00:52:09.958 Hi, thank you. Can you hear me? Yes, we can. You may 00:52:09.969 --> 00:52:13.789 provide your comments. Great, thanks. Thank you very much. Um, I'm 00:52:13.800 --> 00:52:19.019 calling in opposition to uh Cal-Am's uh, rate increase. 00:52:20.309 --> 00:52:28.809 You know, gosh. it's so disheartening. Um, every year 00:52:28.820 --> 00:52:33.570 it seems like Cal-Am is asking for a rate increase. And 00:52:33.579 --> 00:52:41.969 every year not once since 2003, since I started. Uh, 00:52:41.978 --> 00:52:47.369 paying bills here in Monterey Peninsula. Not once 00:52:47.378 --> 00:52:51.708 have you guys denied or questioned or, or withheld 00:52:51.809 --> 00:52:58.619 the rate increase. And unfortunately, we're now located 00:52:58.628 --> 00:53:02.719 in one of the most expensive water districts in California. 00:53:03.769 --> 00:53:09.340 And I want you to know that this affects families, 00:53:10.300 --> 00:53:17.099 it affects children. Right now, we can only afford for 00:53:17.110 --> 00:53:23.168 my daughter to shower once a week. That's real, that's 00:53:23.179 --> 00:53:28.289 honest. Okay. My husband and I, because we work we shower 00:53:28.300 --> 00:53:32.579 twice a week. Can you think about that for a second? 00:53:32.949 --> 00:53:36.918 Can you think about what that means? 00:53:36.918 --> 00:53:41.208 Can you think about what it means to wonder how much 00:53:41.219 --> 00:53:46.090 it will cost if you maintain your laundry? When you 00:53:46.099 --> 00:53:49.889 think about that for a second? Can you think about 00:53:49.898 --> 00:53:54.590 what it's like, to think about whether or not you should 00:53:54.599 --> 00:53:59.438 run, you can afford to run your dishwasher or if it 00:53:59.449 --> 00:54:05.208 would be better off for you to, to uh, to use recycled 00:54:05.219 --> 00:54:09.708 water that you caught off of your roof? When you think 00:54:09.719 --> 00:54:13.809 about that for a second what that's like? If you can 00:54:13.820 --> 00:54:18.929 think about what that's like, dear welly-paid CPUC. 00:54:18.938 --> 00:54:22.958 Commissioners. Then you can think about what that's 00:54:22.969 --> 00:54:29.889 like to live under the tyranny of Cal-Am water on the 00:54:29.898 --> 00:54:38.280 Monterey Peninsula. We are in a stranglehold. Please, please 00:54:38.289 --> 00:54:46.719 help our families. Please tell them no. Too many rate 00:54:46.728 --> 00:54:52.869 case, uh applications. They're, they're doing rate increases 00:54:52.878 --> 00:54:55.250 every 3 years in the General Rate Case. And then 00:54:55.260 --> 00:54:59.530 they're asking for authorizations outside of the General 00:54:59.539 --> 00:55:02.820 Rate Case. Are you guys keeping track about what that 00:55:02.829 --> 00:55:12.199 means for working families? 00:55:12.199 --> 00:55:14.550 Uh, before the last caller hangs up. Could you please 00:55:14.559 --> 00:55:17.719 spell your first and last name for the record. So the 00:55:17.728 --> 00:55:27.409 court reporter has it. Sure. First name is S. A. O. I. R. S. 00:55:27.438 --> 00:55:36.829 E. Last name is F. O. L. S. O. M. Saoirse means freedom 00:55:36.840 --> 00:55:40.579 in Gaelic. I need freedom from Cal-Am Water. Please 00:55:40.590 --> 00:55:43.898 help us. 00:55:43.898 --> 00:55:47.869 All right. Thank you. Thanks. Operator, do we have any other speakers? 00:55:50.969 --> 00:55:53.208 And we have no callers in queue at this time. But again, 00:55:53.219 --> 00:55:55.349 if you would like to make a comment. Please press star 00:55:55.360 --> 00:56:03.969 1. 00:56:03.969 --> 00:56:07.119 All right, we'll give it a minute or two here. To give 00:56:07.128 --> 00:56:10.360 anyone who wishes to make one more comment, the chance 00:56:10.369 --> 00:56:37.289 to speak. 00:56:37.289 --> 00:56:40.019 All right, Operator. If we have another speaker, you 00:56:40.030 --> 00:56:44.610 may, uh call upon them. 00:56:44.610 --> 00:56:47.530 We do have one more caller Cate Mulligan, 00:56:47.539 --> 00:56:52.239 you may go ahead. Hi, Cate Mulligan here from Seaside. 00:56:52.860 --> 00:56:55.079 I agree with all of the people that are complaining 00:56:55.090 --> 00:56:59.059 about the price hike. I think it's invalid and the 00:56:59.070 --> 00:57:02.389 $10 million giveaway is just to get rid of them. Let's 00:57:02.398 --> 00:57:04.708 just get rid of them. Let's not have them continue 00:57:04.719 --> 00:57:07.728 to ask for more money. If they want to save some money 00:57:07.739 --> 00:57:10.840 they should stop wasting money on advertising. Especially 00:57:10.849 --> 00:57:14.668 insulting advertising, that calls us their heroes. We 00:57:14.679 --> 00:57:18.260 are their wallets, not their heroes. I don't trust 00:57:18.269 --> 00:57:22.539 them and I think you shouldn't either. Thank you. Caller 00:57:22.550 --> 00:57:24.820 before you hang up. Could you please, uh spell your 00:57:24.829 --> 00:57:30.019 first and last name for the record and the court reporter can record it. C. 00:57:30.030 --> 00:57:34.239 A. T. E. M. U. Double L. I. G. A. N. Thank 00:57:34.250 --> 00:57:37.619 you. Thank you. 00:57:37.619 --> 00:57:40.079 All right Operator. Do we have any other commenters on 00:57:40.090 --> 00:57:42.469 the line? 00:57:42.469 --> 00:57:44.809 And we have no additional callers online at this time. 00:57:45.699 --> 00:57:48.860 All right. Ladies and gentlemen, this will be the last 00:57:48.869 --> 00:57:53.599 opportunity to uh, call in. If you wish to provide comment. 00:57:53.978 --> 00:57:57.188 I remind you, we will be having another virtual public 00:57:57.199 --> 00:58:00.550 participation hearing this evening, beginning at 6 00:58:00.559 --> 00:58:04.309 pm. 00:58:04.309 --> 00:58:09.760 So at this point, it is now almost 3:15 pm. And 00:58:09.769 --> 00:58:12.938 since we have, uh we have no more speakers on the line. 00:58:12.949 --> 00:58:17.228 I want to thank everyone who participated today. Before 00:58:17.239 --> 00:58:20.369 we end the Hearing. I'll ask if Commissioner Shiroma 00:58:20.500 --> 00:58:24.639 would like to make any additional comments. 00:58:24.639 --> 00:58:28.530 Yes. Thank you, Judge Rambo. Uh, I want to thank all 00:58:28.539 --> 00:58:34.958 of the presenters today and all of the folks who um, 00:58:35.340 --> 00:58:41.719 um logged in to the adminmonitor webex. And uh, those 00:58:41.728 --> 00:58:45.840 who called in and provided public comments. Very much 00:58:45.849 --> 00:58:49.728 appreciated the time everyone took, uh during their 00:58:49.739 --> 00:58:54.000 afternoon. Uh and appreciate all the comments made. 00:58:54.708 --> 00:58:57.918 Thank you, back to you Judge Rambo. 00:58:57.918 --> 00:59:01.458 Thank you, Commissioner Shiroma. Before we conclude, 00:59:01.469 --> 00:59:05.429 I want to remind you that you are able to submit written 00:59:05.438 --> 00:59:08.628 comments by visiting the link of, shown on the screen. 00:59:09.550 --> 00:59:13.719 You can click on the public comments tab at app 00:59:13.728 --> 00:59:17.489 s.cpuc.ca.gov 00:59:17.500 --> 00:59:26.059 /c/A2207001 Additionally 00:59:26.070 --> 00:59:29.769 as I indicated earlier, there will be another virtual 00:59:29.780 --> 00:59:33.300 Public Participation Hearing this evening at 6pm. 00:59:34.188 --> 00:59:37.769 And we will have in-person Public Participation Hearing 00:59:37.780 --> 00:59:41.849 this Thursday at 2 and 6pm in Rancho Cordova at 00:59:41.860 --> 00:59:45.360 the Rancho Cordova City Hall. There will be another 00:59:45.369 --> 00:59:49.239 Public Participation Hearing at the Seaside City Hall 00:59:49.619 --> 00:59:55.168 at 2, and again at 6pm on April 25. And then, 00:59:55.179 --> 00:59:58.898 our final scheduled Public Participation Hearings are 00:59:58.909 --> 01:00:03.280 scheduled for 2 and 6pm. On May 2nd at the Thousand 01:00:03.289 --> 01:00:06.478 Oaks City Hall. 01:00:06.478 --> 01:00:09.829 If you have, uh require assistance providing additional 01:00:09.840 --> 01:00:13.050 comments or you wish to uh, have difficulty with the 01:00:13.059 --> 01:00:17.059 website. You may contact the Commission's Public Advisors 01:00:17.070 --> 01:00:22.708 Office at public.advisor@cpuc. 01:00:22.719 --> 01:00:27.398 ca.gov This concludes this afternoon's Public 01:00:27.409 --> 01:00:31.628 Participation Hearing. I thank you all for your participation 01:00:31.958 --> 01:00:34.898 and for bearing with us through the technical difficulties 01:00:34.909 --> 01:00:37.820 earlier. Uh, we are now off the record.