WEBVTT 00:00:00.579 --> 00:00:03.599 Good evening. Then we will now be on the record. The 00:00:03.609 --> 00:00:07.500 Commission will come to order. It is now approximately 00:00:07.509 --> 00:00:12.890 5 minutes after 6pm on April 11, 2023. This 00:00:12.898 --> 00:00:15.939 is the remote Public Participation Hearing for the 00:00:15.948 --> 00:00:20.109 application of California American Water Company for 00:00:20.120 --> 00:00:24.670 authority to increase rates and other requests. The 00:00:24.679 --> 00:00:30.839 docket number for this proceeding is A22-07-001. 00:00:31.760 --> 00:00:35.259 Please note that the audio and visual feed of this 00:00:35.270 --> 00:00:38.899 public hearing is being recorded and will be accessible 00:00:38.908 --> 00:00:43.048 on the CPUC website. If you do not wish 00:00:43.060 --> 00:00:48.069 to be recorded, please disconnect now. My name is 00:00:48.079 --> 00:00:51.609 Jacob L. Rambo and I am the Administrative Law Judge 00:00:51.618 --> 00:00:54.679 assigned to this proceeding. 00:00:54.679 --> 00:00:59.009 Joining me is Commissioner Genevieve Shiroma. The Commissioner 00:00:59.020 --> 00:01:02.509 assigned to this proceeding. At this time, Commissioner 00:01:02.520 --> 00:01:07.010 Shiroma will offer some initial comments. 00:01:07.010 --> 00:01:10.599 Good evening everyone. Thank you, Judge Rambo. My 00:01:10.609 --> 00:01:16.540 name is uh, Genevieve Shiroma and my pronouns are she/her? Uh, I'm the 00:01:16.549 --> 00:01:20.219 assigned lead Commissioner for this proceeding. I'm 00:01:20.230 --> 00:01:23.730 pleased to join Judge Rambo today for this Public 00:01:23.739 --> 00:01:27.638 Participation Hearing. Historic drought conditions 00:01:27.650 --> 00:01:31.849 across the State are improving, and the water supply 00:01:31.859 --> 00:01:36.049 is looking more promising. However, California continues 00:01:36.058 --> 00:01:39.790 to face intense weather conditions and water system 00:01:39.799 --> 00:01:44.790 resiliency is of great importance. And must be balanced 00:01:44.799 --> 00:01:49.359 with affordability. Uh, Judge Jacob Rambo and I will 00:01:49.370 --> 00:01:52.900 be working together to carefully consider California 00:01:52.909 --> 00:01:56.599 American Water Company's request, in this General Rate 00:01:56.609 --> 00:02:01.159 Case proceeding. And ensure that customer bills reflect 00:02:01.230 --> 00:02:06.250 quality water service. As these General Rate Case proceedings, 00:02:06.260 --> 00:02:11.050 may have large impacts on the ratepayers. We at the 00:02:11.058 --> 00:02:13.919 California Public Utilities Commission take public 00:02:13.929 --> 00:02:17.838 participation very seriously. And work to ensure that 00:02:17.849 --> 00:02:21.439 customers have ample opportunity to understand the 00:02:21.449 --> 00:02:24.409 proceedings that affect them, and voice any questions 00:02:24.419 --> 00:02:28.110 or concerns. Today, we have an opportunity for Cal- 00:02:28.118 --> 00:02:31.580 Am customers to learn more about the General Rate 00:02:31.588 --> 00:02:35.808 Case application and express their views. I look forward 00:02:35.819 --> 00:02:38.778 to hearing from all of you and from our presenters 00:02:38.788 --> 00:02:42.189 today. Uh, before I turn it back to Judge Rambo. I 00:02:42.199 --> 00:02:45.909 would like to thank today's court reporters, Doris Waman 00:02:46.118 --> 00:02:50.479 and Tamara Dawson. Who are working very hard to cover 00:02:50.788 --> 00:02:54.210 Participation Hearing, and making sure that we have 00:02:54.219 --> 00:02:57.610 captured everything that is said on the record. Thank 00:02:57.618 --> 00:03:00.939 you and back to you, Judge Rambo. 00:03:00.939 --> 00:03:04.330 Thank you, Commissioner Shiroma. The purpose of today's 00:03:04.338 --> 00:03:07.520 Hearing is for the California Public Utilities Commission 00:03:07.528 --> 00:03:11.520 or CPUC. To hear from the public about the 00:03:11.528 --> 00:03:14.460 issues that are addressed in the California American 00:03:14.469 --> 00:03:18.860 application. The CPUC is the state agency that has 00:03:18.868 --> 00:03:22.020 regulatory authority over California American Water 00:03:22.028 --> 00:03:25.659 Company. A water utility providing service in several 00:03:25.669 --> 00:03:30.129 districts throughout the State. The CPUC is composed 00:03:30.139 --> 00:03:33.179 of 5 Commissioners who are appointed by the Governor 00:03:33.250 --> 00:03:37.330 and confirmed by the California State Senate. The Commissioners 00:03:37.338 --> 00:03:40.139 will render a final decision on each of the issues 00:03:40.149 --> 00:03:43.179 raised by the application. 00:03:43.179 --> 00:03:46.460 Fact sheets and other information about this proceeding 00:03:46.469 --> 00:03:51.710 are available on the Commission's website at www. 00:03:51.778 --> 00:03:58.550 cpuc.ca.gov/ 00:03:58.558 --> 00:04:04.240 pph. That address is available on the, on the slide 00:04:04.250 --> 00:04:06.909 on your screen. 00:04:06.909 --> 00:04:10.169 In addition to today's virtual Hearing, the Commission 00:04:10.179 --> 00:04:14.508 will be conducting several in-person Hearings. 00:04:14.508 --> 00:04:18.350 This Thursday, April 13 in-person hearings will be 00:04:18.358 --> 00:04:22.790 held at the Rancho Cordova City Hall at 2 and 6pm. 00:04:22.798 --> 00:04:27.928 On April 25, in-person Hearings will be held at 00:04:27.939 --> 00:04:33.769 the Seaside City Hall at 2 and at 6pm. And on 00:04:33.778 --> 00:04:38.329 May 2, 2023, in-person Hearings will be held at the 00:04:38.338 --> 00:04:43.980 Thousand Oaks City Hall at 2 and at 6pm. 00:04:43.980 --> 00:04:47.199 As the Administrative Law Judge in this proceeding. 00:04:47.480 --> 00:04:50.588 My role is to evaluate the evidence and the applicable 00:04:50.600 --> 00:04:54.459 law in the proceedings and to write a proposed decision 00:04:54.528 --> 00:04:58.209 based upon the record. The Commissioners will vote 00:04:58.220 --> 00:05:02.629 to adopt my proposed decision or they may adopt their 00:05:02.639 --> 00:05:05.608 own alternate decision. 00:05:05.608 --> 00:05:08.988 If you wish to participate today and provide public 00:05:09.000 --> 00:05:17.389 comments to this Hearing. You will need to call 800-857- 00:05:18.009 --> 00:05:28.389 1917. English callers should enter code 1767567#, and 00:05:28.399 --> 00:05:32.019 press *1. 00:05:32.019 --> 00:05:35.660 We have interpreters available to assist, to assist 00:05:35.670 --> 00:05:41.069 Spanish speakers. If you wish to speak through an interpreter, 00:05:41.290 --> 00:05:47.778 enter code 3799627#, and press *1 on your phone. 00:05:51.980 --> 00:05:56.108 When you enter *1, the operator will be notified 00:05:57.410 --> 00:06:00.720 and will begin to create the queue of public speakers. 00:06:01.569 --> 00:06:05.259 Please when requested, unmute your phone and provide 00:06:05.269 --> 00:06:07.329 your name. 00:06:07.329 --> 00:06:09.759 If you're listening to the hearing online while you 00:06:09.769 --> 00:06:13.178 are on the phone. Please ensure that you mute your 00:06:13.189 --> 00:06:16.509 streaming device, before speaking when you're called 00:06:16.519 --> 00:06:20.069 upon. There is a brief delay between what you say on 00:06:20.079 --> 00:06:23.838 the phone and on the broadcast. 00:06:23.838 --> 00:06:29.139 If you are an elected or a public official, who wishes 00:06:29.149 --> 00:06:32.600 to make a statement today. Please notify the operator 00:06:32.879 --> 00:06:36.259 of your title and position, in addition to your name. 00:06:37.730 --> 00:06:42.269 All of the information regarding the call in and speaker 00:06:42.278 --> 00:06:47.278 codes are available on the slide on your screen. 00:06:47.278 --> 00:06:51.500 In addition, we have separate phone lines for customers 00:06:51.509 --> 00:06:56.100 to ask questions about their bill. That telephone number 00:06:56.108 --> 00:07:06.088 is provided on the screen 619-415-1170. 00:07:06.088 --> 00:07:10.769 If you are unable to call in today or to make comments 00:07:10.778 --> 00:07:16.290 at one of the in-person hearings. You may also submit 00:07:16.298 --> 00:07:19.369 written comments by visiting the link that you see 00:07:19.379 --> 00:07:23.750 on the screen. Make sure you click on the public comment 00:07:23.759 --> 00:07:29.500 tab that link is available at apps. 00:07:29.509 --> 00:07:34.910 cpuc.ca.gov/ 00:07:34.920 --> 00:07:39.488 c/ 00:07:39.500 --> 00:07:47.819 A2207001 As of this evening, we have received 00:07:47.829 --> 00:07:52.088 64 written public comments. 00:07:52.088 --> 00:07:56.548 There are several parties to this proceeding. I will 00:07:56.559 --> 00:08:00.569 now invite the parties to make brief presentations. 00:08:01.209 --> 00:08:05.619 We will start with California American. At this time, 00:08:05.629 --> 00:08:09.329 California American's representatives may make the 00:08:09.338 --> 00:08:14.048 presentation on behalf of the applicant. 00:08:14.048 --> 00:08:18.338 Thank you, Judge Rambo. My name is Evan Jacobs. My 00:08:18.350 --> 00:08:23.108 pronouns are he/him and his? And I'm here representing 00:08:23.119 --> 00:08:26.509 California American Water. I would like to thank the 00:08:26.519 --> 00:08:28.709 customers who are joining us to participate in the 00:08:28.720 --> 00:08:32.519 regulatory process. We also would like to thank representatives 00:08:32.529 --> 00:08:35.119 from the Commission including the Judge, Commissioner 00:08:35.129 --> 00:08:38.408 Shiroma, uh and the Public Advisor Staff. Who have helped 00:08:38.418 --> 00:08:43.798 us, uh get to this point today. Joining me on the, um 00:08:43.808 --> 00:08:48.587 speaker line is Patrick Pilz. He is our customer service 00:08:48.597 --> 00:08:51.678 representative. His phone number appears in the bottom 00:08:51.688 --> 00:08:55.908 right hand corner of the white slide. If you have any 00:08:55.918 --> 00:08:59.058 questions related to customer service, conservation 00:08:59.067 --> 00:09:02.729 programs or affordability programs encourage you to 00:09:02.739 --> 00:09:07.019 give him a call. We also have a lot of great information 00:09:07.029 --> 00:09:11.570 on our website californiaamwater.com, like American 00:09:11.580 --> 00:09:18.759 Water. That's www.californiaamwater.com. There's 00:09:18.769 --> 00:09:22.080 also a fully translated Spanish language website there 00:09:22.090 --> 00:09:26.779 that customers can access. 00:09:26.779 --> 00:09:30.710 California American Water serves over 700,000 residents 00:09:31.099 --> 00:09:35.408 in 10 counties around California. We also provide wastewater 00:09:35.418 --> 00:09:39.769 service in some areas. Our request in the statewide 00:09:39.779 --> 00:09:43.149 General Rate Case varies in each area. So it's important 00:09:43.158 --> 00:09:45.899 to understand that local rates may vary accordingly. 00:09:47.928 --> 00:09:50.349 California American Water files an application with 00:09:50.359 --> 00:09:53.969 the Commission once every 3 years. To set budgets 00:09:53.979 --> 00:09:57.609 and design rates. The Commission then conducts a detailed 00:09:57.619 --> 00:10:01.719 review of our information and ultimately approves, modifies 00:10:01.729 --> 00:10:06.820 or rejects our request. Note that the revenue request 00:10:06.830 --> 00:10:10.629 in this case, found in the 2nd paragraph of the notice 00:10:10.639 --> 00:10:14.408 we mailed the customers. Under the "Why am I receiving 00:10:14.418 --> 00:10:19.668 this notice?" section. Does differ than the rate impacts 00:10:19.678 --> 00:10:22.710 for typical customers which are found in the charts 00:10:22.719 --> 00:10:26.869 below. And that is because the revenue requirement 00:10:27.599 --> 00:10:30.629 differs from the rate design. So what may happen with 00:10:30.639 --> 00:10:33.379 rates doesn't always align correctly with those numbers. 00:10:33.678 --> 00:10:35.808 I wanted to point that out, because we have received 00:10:35.820 --> 00:10:38.158 some comments about why those two sets of numbers were 00:10:38.168 --> 00:10:40.840 different. 00:10:40.840 --> 00:10:43.009 The current application we're discussing today just 00:10:43.019 --> 00:10:48.798 for rates from January 2024-December 2026. And 00:10:48.808 --> 00:10:52.658 it requests over $400 million for infrastructure renewal 00:10:52.668 --> 00:10:56.979 and replacement around the state. The request was originally 00:10:56.989 --> 00:11:01.668 filed in July 2022. 00:11:01.668 --> 00:11:06.668 On January 27, 2023, California American Water updated 00:11:06.678 --> 00:11:10.960 its application, incorporating two rate design proposals. 00:11:11.798 --> 00:11:15.750 The Water Resources Sustainability Plan and the Monterey 00:11:15.759 --> 00:11:19.908 Style Water Revenue Adjustment mechanism. 00:11:19.908 --> 00:11:22.519 A key element of the company's updated General Rate 00:11:22.529 --> 00:11:25.500 Case request is the Water Resources Sustainability 00:11:25.509 --> 00:11:29.690 Plan. It is a comprehensive set of proposals designed 00:11:29.700 --> 00:11:32.619 to promote water use efficiency and sustainability, 00:11:33.239 --> 00:11:36.570 improve affordability and provide real protections 00:11:36.580 --> 00:11:40.149 for our customers. By ensuring that volume metric based 00:11:40.158 --> 00:11:43.359 rates collect only the revenues authorized by the Commission 00:11:43.369 --> 00:11:48.349 in this proceeding. If customer use exceeds these sales, 00:11:48.450 --> 00:11:51.149 additional revenue that has been collected will be 00:11:51.158 --> 00:11:55.340 returned to customers through a surcredit. Alternatively, 00:11:55.349 --> 00:11:58.908 if customer use is lower than forecasted, the difference 00:11:58.918 --> 00:12:03.048 will be collected through a surcharge to bills. 00:12:03.048 --> 00:12:06.590 The WRSP establishes customer rates that approximates 00:12:06.599 --> 00:12:10.330 as closely as possible. Actual customer use during the 00:12:10.340 --> 00:12:14.048 3 year rate case cycle. And provide for regular 00:12:14.058 --> 00:12:18.168 sales forecast updates to help mitigate the variances. 00:12:19.519 --> 00:12:22.639 California American Waters work diligently to provide 00:12:22.649 --> 00:12:26.158 a comprehensive set of proposals under this plan. That 00:12:26.168 --> 00:12:28.558 will work in conjunction to provide the best outcome 00:12:28.570 --> 00:12:31.719 for our customers. 00:12:31.719 --> 00:12:34.109 Wanted to talk to our members about water supplies 00:12:34.119 --> 00:12:37.869 and the drought. That's top of mind right now, we have 00:12:37.879 --> 00:12:40.479 received around the state, an unprecedented amount 00:12:40.489 --> 00:12:44.038 of rain and snow this winter. The result is that much 00:12:44.048 --> 00:12:46.729 of the state is no longer in a drought and our water 00:12:46.739 --> 00:12:50.479 supplies are recharging and recovering. That's good 00:12:50.489 --> 00:12:53.840 news. But it's also important for us to recognize. That 00:12:53.849 --> 00:12:56.509 climate change is increasing the length and severity 00:12:56.519 --> 00:12:59.820 of droughts. Between extremely wet winters, like the 00:12:59.830 --> 00:13:03.690 one we had this year. It's important all of our customers 00:13:03.700 --> 00:13:07.519 continue to use water efficiently and I want everyone 00:13:07.529 --> 00:13:09.418 to know and thank you. We've got the right slide up 00:13:09.428 --> 00:13:13.239 here. That we offer a variety of free conservation programs. 00:13:13.840 --> 00:13:17.629 In-home water use surveys, business water use surveys, 00:13:17.639 --> 00:13:21.849 rebates for turf removal and appliances, low flow water 00:13:21.859 --> 00:13:25.379 saving devices, and interactive water efficient and 00:13:25.389 --> 00:13:28.739 educational webinars. I would encourage everyone to 00:13:28.750 --> 00:13:31.279 visit our website. We have a great conservation page. 00:13:31.288 --> 00:13:33.428 We have information about what's available in each 00:13:33.440 --> 00:13:36.460 of our service areas around the State. And a lot of 00:13:36.469 --> 00:13:39.678 great things to help customers use water more efficiently, 00:13:39.820 --> 00:13:44.798 save some money and do it the way that's easy. 00:13:44.798 --> 00:13:47.359 We also recognize that everyone needs access to water 00:13:47.369 --> 00:13:51.109 service for health and safety. To support the affordability 00:13:51.119 --> 00:13:54.058 of water service for residential customers. California 00:13:54.129 --> 00:13:56.798 American Water offers several assistance programs. 00:13:57.529 --> 00:13:59.779 The first is our Customer Assistance Program, which 00:13:59.788 --> 00:14:04.469 provides a discount of between 20 and 30%. To qualified 00:14:04.479 --> 00:14:09.889 residential customers for essential service. We're proposing 00:14:09.899 --> 00:14:12.609 to increase the percentage amount of those discounts 00:14:12.619 --> 00:14:15.210 in this rate case. 00:14:15.210 --> 00:14:18.609 The second program is payment options. Which we try 00:14:18.619 --> 00:14:22.070 to make it easy for customers to make payment arrangements. 00:14:22.080 --> 00:14:24.750 Payment plans of up to 12 months with us for past due 00:14:24.759 --> 00:14:29.399 bills. The third program which is particularly important 00:14:29.548 --> 00:14:32.989 is known as the Low-Income Household Water Assistance 00:14:33.000 --> 00:14:36.379 Program or LIHWAP. LIHWAP 00:14:36.379 --> 00:14:39.450 is a federally funded program that was rolled out in 00:14:39.460 --> 00:14:43.940 the state of California last July. It's offering tremendously 00:14:43.950 --> 00:14:47.000 generous benefits to customers who have arrearages 00:14:47.009 --> 00:14:51.489 or past due bills. The program will pay up to $15,000 00:14:51.500 --> 00:14:54.840 of those past due bills. The program also recently 00:14:54.849 --> 00:14:57.029 announced that they will help residential customers 00:14:57.038 --> 00:15:01.408 who qualify. To get payments in advance for future water 00:15:01.418 --> 00:15:04.349 bills. So we encourage all of our customers to take 00:15:04.359 --> 00:15:08.200 advantage of this program. We expect it to be uh, sunset 00:15:08.210 --> 00:15:11.658 at the end of this year. So please visit our website, 00:15:11.668 --> 00:15:14.178 there's a different third party provider in each county 00:15:14.190 --> 00:15:17.090 who helps process it. We have all the information about 00:15:17.099 --> 00:15:20.229 contacting them on our website. Or Patrick Pilz, our 00:15:20.239 --> 00:15:22.548 customer service representative can also help you get 00:15:22.558 --> 00:15:26.460 in touch with the right agency there. 00:15:26.460 --> 00:15:28.928 In addition to finding rates, conservation, and customer 00:15:28.940 --> 00:15:31.840 assistance information on our website. I want to make 00:15:31.849 --> 00:15:34.779 sure that folks know that Patrick Pilz is available. 00:15:34.899 --> 00:15:38.440 And he can address any specific customer, uh service 00:15:38.450 --> 00:15:41.308 questions that do come up. The phone numbers below 00:15:41.320 --> 00:15:45.489 I'd encourage you to reach out to them. Um, we're available 00:15:45.500 --> 00:15:47.859 and helpful. In our in-person hearings, we will also 00:15:47.869 --> 00:15:51.298 have Staff with all of this information. To help as 00:15:51.308 --> 00:15:55.349 well, um in the coming days and weeks. So thank you 00:15:55.359 --> 00:15:59.570 again and thank you, Judge Rambo. I will hand it back 00:15:59.580 --> 00:16:04.149 to you now. All right. Thank you, Mr. Jacobs. 00:16:04.149 --> 00:16:07.538 Next, we will call upon the a representative from the 00:16:07.548 --> 00:16:11.399 California, the California Public Utilities Commission 00:16:11.408 --> 00:16:14.700 Office of Public Advocates to make a presentation. 00:16:19.000 --> 00:16:23.190 Thank you, Your Honor. Good evening. My name is Cortney 00:16:23.200 --> 00:16:27.099 Sorensen, a Senior Utilities Engineer, with the Public Advocates 00:16:27.109 --> 00:16:31.070 Office. And leading and coordinating the GRC review 00:16:31.080 --> 00:16:34.229 team. The Public Advocates Office is an independent 00:16:34.239 --> 00:16:37.320 office within the California Public Utilities Commission 00:16:37.590 --> 00:16:41.719 that represents the interests of ratepayers. Our statutory 00:16:41.729 --> 00:16:44.719 mission is to obtain the lowest possible rate for service 00:16:44.729 --> 00:16:49.359 consistent with reliable and safe service level. The 00:16:49.369 --> 00:16:53.000 Public Advocates Office has a multidisciplinary Staff 00:16:53.009 --> 00:16:56.690 with engineers, economics and finance and accounting 00:16:56.700 --> 00:17:01.279 expertise. In this proceeding, thirteen experts including 00:17:01.288 --> 00:17:05.430 4 engineers, 3 financial experts, 4 regulation 00:17:05.439 --> 00:17:09.519 experts and 2 attorneys are reviewing Cal-Am's current 00:17:09.529 --> 00:17:14.170 rate increase application. Our testimony is still in 00:17:14.180 --> 00:17:17.709 progress and will be filed on April 13, two days from 00:17:17.719 --> 00:17:22.468 today. Our testimony will present analysis and recommendations 00:17:22.479 --> 00:17:27.439 on various issues including operation expense, capital 00:17:27.449 --> 00:17:32.549 investment, sales rate, design and taxes. In addition 00:17:32.559 --> 00:17:35.618 to specific topics, the report will also focus on the 00:17:35.630 --> 00:17:39.959 following areas. First, the rate making process should 00:17:39.969 --> 00:17:43.880 be transparent to decision makers and ratepayers and 00:17:43.890 --> 00:17:46.630 encourage utilities to operate efficiently and within 00:17:46.640 --> 00:17:52.140 a reasonable budget. Second, as a substitute for competition 00:17:52.150 --> 00:17:55.118 the Commission must ensure that Cal-Am does not abuse 00:17:55.130 --> 00:17:59.338 its position of a natural monopoly. And finally, the 00:17:59.348 --> 00:18:01.769 Commission should limit the use of alternative rate 00:18:01.779 --> 00:18:05.449 making mechanisms. That result in surcharges on customers 00:18:05.459 --> 00:18:08.900 bills. 00:18:08.900 --> 00:18:12.489 You can view our testimony after Thursday, April 13 00:18:12.500 --> 00:18:17.029 on the Commission's website: www.cpuc.ca 00:18:17.039 --> 00:18:21.078 .gov and click on the Public Advocates Office 00:18:21.088 --> 00:18:25.000 link. If you have any questions, you can contact me 00:18:25.009 --> 00:18:28.709 at csn@cpuc.ca. 00:18:28.719 --> 00:18:33.259 gov Thank you. 00:18:33.259 --> 00:18:37.368 Thank you. And now I'll call upon the City of Thousand 00:18:37.380 --> 00:18:42.289 Oaks. 00:18:42.289 --> 00:18:45.539 Thank you, Commissioner Shiroma and Judge Rambo for 00:18:45.549 --> 00:18:50.420 the opportunity to speak today. I'm Jay Spurgeon, retired 00:18:50.430 --> 00:18:53.130 Public Works Director for the City of Thousand Oaks and 00:18:53.140 --> 00:18:56.568 currently assisting the city as a Consultant on this 00:18:56.578 --> 00:19:00.838 Rate Case. Next slide please. There are 3 main 00:19:00.848 --> 00:19:04.799 water purveyors in Thousand Oaks. On this map, the service 00:19:04.809 --> 00:19:10.380 area for Cal-Am is shown in orange. For the city in blue 00:19:11.039 --> 00:19:17.519 and Cal Water Service Company in tan. Next please. Cal-Am is 00:19:17.529 --> 00:19:21.500 the largest purveyor in Thousand Oaks, followed by the city 00:19:21.969 --> 00:19:25.608 and Cal Water. The city believes there should be water 00:19:25.618 --> 00:19:30.660 pricing equity. That is residents and businesses should 00:19:30.670 --> 00:19:35.189 not have to pay significantly more for water. Just because 00:19:35.390 --> 00:19:41.739 they're in a different service area. Next please. 00:19:41.739 --> 00:19:45.670 The city further believes that the actual costs for 00:19:45.680 --> 00:19:49.509 providing water service are similar for all three purveyors. 00:19:49.809 --> 00:19:54.469 Including water supply, infrastructure, operations 00:19:54.479 --> 00:19:58.949 and maintenance. Therefore, costs should be equitable 00:19:59.029 --> 00:20:02.989 for all residents and businesses throughout Thousand Oaks. 00:20:09.539 --> 00:20:14.019 Next. Cal-Am's rate case proposal would result in more than 20% 00:20:14.029 --> 00:20:17.719 cumulative rate increases over the next 3 years. 00:20:18.818 --> 00:20:23.400 This seems excessive to us when compared to recent 00:20:23.410 --> 00:20:28.670 and expected future city rate increases of only 1% 00:20:28.680 --> 00:20:34.949 per year. Also note that, purchase water increases will 00:20:34.959 --> 00:20:40.969 be in addition to those noted here. 00:20:40.969 --> 00:20:44.769 Next, please. 00:20:44.769 --> 00:20:49.930 Cal-Am's proposed rate design results in significant 00:20:49.939 --> 00:20:54.180 inequities in customer water bill increases depending 00:20:54.189 --> 00:20:59.709 on their water usage, as shown in this table. The 1% 00:20:59.719 --> 00:21:04.049 or so proposed increase for an average residential 00:21:04.059 --> 00:21:09.039 customer shown in the PPH notice for this meeting. Does 00:21:09.049 --> 00:21:13.209 not tell the whole story. So we respectfully ask 00:21:13.219 --> 00:21:17.828 the Commission to require Cal-Am to propose a more equitable 00:21:18.108 --> 00:21:20.939 rate design. 00:21:20.939 --> 00:21:24.779 Next please. 00:21:24.779 --> 00:21:28.358 Cal-Am rates are already the highest of the 3 water 00:21:28.368 --> 00:21:31.209 purveyors in the city. 00:21:31.209 --> 00:21:36.400 This proposal in their proposed increases will result 00:21:37.368 --> 00:21:41.809 in greater inequities throughout the city. 00:21:41.809 --> 00:21:47.509 Um, and now if Staff could skip ahead to the last slide, 00:21:47.519 --> 00:21:52.380 imported water costs. Thank you. 00:21:52.380 --> 00:21:57.959 The largest cost in the city's water budget about 70% 00:21:58.259 --> 00:22:03.170 in fact, is purchased imported water. We believe this 00:22:03.180 --> 00:22:07.989 is similar for Cal-Am and Cal Water. Imported water 00:22:08.000 --> 00:22:14.098 is expected to increase from 3 to 5% per year in the 00:22:14.108 --> 00:22:19.239 future. As shown in this graphic provided by the Calleguas Municipal 00:22:19.250 --> 00:22:24.509 Water District. Which is the uh, wholesale water importer 00:22:24.519 --> 00:22:28.699 for Thousand Oaks. 00:22:28.699 --> 00:22:35.618 This will add another 2 to 3.5% per year, on top of 00:22:35.630 --> 00:22:40.150 all these other increases. And for Cal-Am, we understand 00:22:40.160 --> 00:22:43.769 that purchase water increases are passed through outside 00:22:43.779 --> 00:22:48.759 the GRC process. That this significant impact on water 00:22:48.769 --> 00:22:52.009 bills should be acknowledged and shared with customers 00:22:52.019 --> 00:22:54.000 now. 00:22:54.000 --> 00:22:59.328 So in closing, the City of Thousand Oaks urges the Commission 00:22:59.338 --> 00:23:04.729 to consider water cost equity in this uh, GRC proceeding. 00:23:05.420 --> 00:23:07.630 And again, thank you for the opportunity to speak. 00:23:10.838 --> 00:23:14.309 Thank you. I will now call upon the representatives 00:23:14.318 --> 00:23:17.568 from the Monterey Peninsula Water Management District. 00:23:20.019 --> 00:23:23.779 Thank you, Judge Rambo and Commissioner Shiroma. My name 00:23:23.789 --> 00:23:27.559 is Fran Farina. I'm with the law firm of De Lay and 00:23:27.568 --> 00:23:31.739 Laredo. De Lay and Laredo is General Counsel to the Monterey 00:23:31.750 --> 00:23:35.769 Peninsula Water Management District. MPWMD 00:23:35.769 --> 00:23:41.789 is a public agency formed in 1978 serving over 100,000 00:23:41.799 --> 00:23:45.818 people in the Monterey Peninsula area. It is governed 00:23:45.828 --> 00:23:50.299 by a locally elected board of director, directors. Its 00:23:50.309 --> 00:23:54.459 functions include augmenting the water supply, promoting 00:23:54.469 --> 00:23:58.630 water conservation, fostering environmental qualities 00:23:58.640 --> 00:24:02.588 of the Carmel River. Providing integrated management 00:24:02.598 --> 00:24:06.890 of ground and surface water and promoting water reuse 00:24:06.900 --> 00:24:12.039 and reclamation. Our water supply comes primarily from 00:24:12.049 --> 00:24:15.979 the native groundwater in the Seaside Basin. The Carmel 00:24:15.989 --> 00:24:20.368 River and water from Pure Water Monterey. A joint 00:24:20.380 --> 00:24:24.848 project by MPWMD and Monterey One Water, both public 00:24:24.858 --> 00:24:29.449 agencies. Additional water comes from our aquifer storage 00:24:29.459 --> 00:24:33.309 and recovery program, and a small desalination facility 00:24:33.318 --> 00:24:38.439 in Sand City. California American Water Company acquired 00:24:38.449 --> 00:24:43.189 the area water system in 1966. There is an existing 00:24:43.199 --> 00:24:46.789 well field for extracting Carmel River water and a 00:24:46.799 --> 00:24:51.459 separate well field in Seaside. At one time, Cal-Am 00:24:51.568 --> 00:24:55.729 took over 14,000 acre feet from the Carmel River and 00:24:55.739 --> 00:25:00.750 over 5,000 acre feet from the Seaside Basin both resources 00:25:00.759 --> 00:25:05.719 are now severely constrained. In this General Rate Case, 00:25:05.729 --> 00:25:09.150 issues of concern to the Monterey Peninsula Water Management 00:25:09.160 --> 00:25:13.469 District include the allocation of costs to customers 00:25:13.479 --> 00:25:18.309 statewide. Monterey main's affordability ratio is 00:25:18.318 --> 00:25:24.759 40% to 300% worse than other Cal-Am districts, without 00:25:24.769 --> 00:25:30.029 any consideration for this disparity. MPWMD is concerned 00:25:30.039 --> 00:25:33.348 with the various subsidies between customer classes. 00:25:33.868 --> 00:25:37.049 The consolidation of transmission and distribution 00:25:37.059 --> 00:25:42.180 assets, the proposed increase to the fixed meter charge. 00:25:42.189 --> 00:25:45.939 With the potential to reduce the effectiveness of local 00:25:45.949 --> 00:25:49.670 conservation efforts. Our concern is also with the 00:25:49.680 --> 00:25:53.348 proposed decrease in conservation program funding for 00:25:53.358 --> 00:25:57.959 Monterey, as well as significant operational deficiencies. 00:25:58.739 --> 00:26:03.799 MPWMD's General Manager will present in-person at 00:26:03.809 --> 00:26:08.969 the April 25 public forums in Seaside. We encourage 00:26:08.979 --> 00:26:12.368 the public to attend either the 2pm or the 6pm 00:26:12.380 --> 00:26:17.029 session at city, uh Seaside City Hall. For additional 00:26:17.039 --> 00:26:22.160 information on MPWMD. Please visit our website at 00:26:22.170 --> 00:26:32.390 www.mpwmd.net Thank you. 00:26:32.390 --> 00:26:37.809 Thank you. The California Water Efficiency Partnership 00:26:38.130 --> 00:26:42.269 and the National Association of Water Companies are 00:26:42.279 --> 00:26:46.309 parties to this proceeding. But they have not, they 00:26:46.318 --> 00:26:50.239 have elected not to make a presentation today. So we 00:26:50.250 --> 00:26:54.078 will now turn to Public Comment. Commissioner Shiroma 00:26:54.088 --> 00:26:57.390 and I will pay close attention to the opinions expressed 00:26:57.400 --> 00:27:01.400 during today's public Hearing. A court reporter will 00:27:01.410 --> 00:27:05.709 be transcribing everything that is said today. Court reporters 00:27:05.719 --> 00:27:11.880 are also on the line. When speaking, please speak slowly 00:27:12.098 --> 00:27:16.459 and clearly. So that the reporters and our Spanish language 00:27:16.469 --> 00:27:21.519 interpreters can capture everything you say. 00:27:21.519 --> 00:27:25.390 Before you begin speaking, I ask that you spell your 00:27:25.400 --> 00:27:29.420 first and last name, and tell us which city you are 00:27:29.430 --> 00:27:34.180 from. The transcript of today's Hearing will be posted 00:27:34.189 --> 00:27:39.519 publicly on the docket card of this proceeding. As 00:27:39.529 --> 00:27:43.509 a reminder, the call in information to present live 00:27:43.519 --> 00:27:56.949 public comment is provided on the screen in bold. 00:27:56.949 --> 00:27:59.660 Operator at this time, you may call upon the first 00:27:59.670 --> 00:28:03.219 commenter. 00:28:03.219 --> 00:28:07.118 Thank you, Judge Rambo. The public comment of the telephone 00:28:07.130 --> 00:28:11.088 line is now open. For those on the phone, if you wish 00:28:11.098 --> 00:28:13.549 to speak during the public comment period. Please press, 00:28:13.670 --> 00:28:17.209 unmute your phone, press *1, and record your first 00:28:17.219 --> 00:28:22.729 and last name slowly and clearly when prompted. 00:28:22.729 --> 00:28:26.150 One moment for our first commenter, 00:28:26.150 --> 00:28:30.989 from Tammy Jimmy, Jennings. Your line is now open. 00:28:33.469 --> 00:28:36.400 Can you hear me? 00:28:36.400 --> 00:28:41.160 Yes, we can hear you. Okay, thank you. My name is Tammy 00:28:41.170 --> 00:28:46.358 Jennings, T. A. M. M. Y. J. E. N. N. I. N. G. 00:28:46.368 --> 00:28:51.640 S. I live in Monterey. 00:28:51.640 --> 00:28:58.539 I am asking that you deny this increase in 00:28:58.539 --> 00:29:05.868 rates to Cal-Am. My water bill has gone up over 26% since 00:29:05.880 --> 00:29:12.818 2019. Social Security has only increased 10.9% over 00:29:12.828 --> 00:29:16.799 the same period of time. How are we supposed to survive 00:29:16.809 --> 00:29:20.400 if the water rates keep going up? Remember we're paying 00:29:20.410 --> 00:29:26.180 for water, we didn't even use. And they just had 11% 00:29:26.189 --> 00:29:31.809 increase in January. I know it's not this part of this 00:29:31.818 --> 00:29:36.489 application, but it seems like every year we're getting 00:29:36.900 --> 00:29:44.910 dinged with increases in the amount of rates that nobody 00:29:44.920 --> 00:29:47.739 can pay. We are paying one of the highest rates in 00:29:47.750 --> 00:29:52.479 the country as it is. Please, please don't do this. 00:29:52.489 --> 00:29:56.059 We're seeing increases across the board for food, gasoline 00:29:56.068 --> 00:29:59.818 PG&E, housing. If you vote yes, you are sentencing 00:29:59.828 --> 00:30:05.328 me and a slew of other fixed income people. To horrible 00:30:05.338 --> 00:30:10.779 times. I mean, we're talking homelessness, starvation, 00:30:11.140 --> 00:30:14.689 indebtedness of which we will never be able to recover. 00:30:15.568 --> 00:30:20.170 Cal-Am. 00:30:20.170 --> 00:30:24.910 Please don't. Please, please don't approve this. It 00:30:24.920 --> 00:30:27.838 seems like I have talked at several of these meetings 00:30:27.848 --> 00:30:31.900 over the years, and every time they have been approved. 00:30:31.910 --> 00:30:36.160 I have never seen one application that Cal-Am has put 00:30:36.170 --> 00:30:41.519 before the CPUC denied. Please deny this one. I'm 00:30:41.529 --> 00:30:46.410 begging you. For me and a lot of other people that are 00:30:46.420 --> 00:30:52.318 on fixed incomes. I am only 63 years old, I have multiple 00:30:52.328 --> 00:30:56.130 sclerosis. I didn't ask to get this. I thought I was 00:30:56.140 --> 00:31:00.150 going to be able to survive these next few years, and 00:31:00.160 --> 00:31:02.920 I'm, I'm at the end of my rope. I don't know what 00:31:02.930 --> 00:31:07.959 to do so, please deny this. Thank you. 00:31:07.959 --> 00:31:12.910 Thank you. Operator, you may call the next presenter. 00:31:14.519 --> 00:31:18.289 Our next comment comes from John Folsom. Your line is open. 00:31:19.009 --> 00:31:24.650 Yes. Thank you. My name is Shawn Folsom, S. H. A. W. 00:31:24.660 --> 00:31:30.160 N. F. O. L. S. O .M. And I have been a 00:31:30.170 --> 00:31:36.358 resident of Carmel Valley Village since 1956. I would 00:31:36.368 --> 00:31:41.160 like to state for the record, that I am against a rate 00:31:41.170 --> 00:31:45.130 increase for Cal-Am. There's several reasons but one 00:31:45.140 --> 00:31:50.920 of them is their desire to capture stranded costs on 00:31:50.930 --> 00:31:54.799 the back of the ratepayers. And I understand that 00:31:54.809 --> 00:31:58.160 they have lots of business adventures in other parts 00:31:58.170 --> 00:32:04.160 of the State. And they seem to always turn to us as 00:32:04.170 --> 00:32:08.588 if we're the inexhaustible piggy bank for all their 00:32:08.598 --> 00:32:13.289 uh, various dealings. The other thing is I, I was very 00:32:13.299 --> 00:32:15.949 intrigued over the last year to find out that they'd 00:32:15.959 --> 00:32:22.828 idled the um, uh small uh, water distillery there 00:32:22.838 --> 00:32:29.009 at, at uh at the uh, beach at Sand City. When they 00:32:29.019 --> 00:32:33.900 could have been all this time putting water from that 00:32:33.910 --> 00:32:39.660 facility into the basin at Seaside. And I often wondered 00:32:39.670 --> 00:32:44.769 as I read through all this stuff, why that was not 00:32:44.779 --> 00:32:49.500 done, is that, is that somehow a problem for them? 00:32:49.578 --> 00:32:54.555 And then the last thing of course, is there delay 00:32:54.693 --> 00:32:59.703 in actually connecting to the water reclamation project 00:32:59.713 --> 00:33:04.924 at Pure Water Monterey? I just really resented the 00:33:04.934 --> 00:33:08.354 fact that we had to be put through delay after, delay 00:33:08.364 --> 00:33:14.114 after, delay. So, thank you Commissioners, Judge and 00:33:14.125 --> 00:33:20.255 Staff. Please deny Cal-Am this rate increase. Thank 00:33:20.265 --> 00:33:22.939 you. 00:33:22.939 --> 00:33:26.068 All right, thank you. Uh, you may call the next speaker. 00:33:27.568 --> 00:33:31.019 Thank you. Before we go to the next caller. If you wish 00:33:31.029 --> 00:33:34.130 to speak during the public comment period. Please unmute 00:33:34.140 --> 00:33:37.618 your phone, press *1, and clearly state your first 00:33:37.630 --> 00:33:41.989 and last name slowly when prompted. 00:33:41.989 --> 00:33:45.759 The next commenter is Anna Thompson, your line is open. 00:33:46.750 --> 00:33:53.118 Yes, good evening. Anna Thompson, A. N. N. A. T. H. O. 00:33:53.150 --> 00:33:59.868 M. P. S. O. N. I am a Cal-Am ratepayer in the Monterey Peninsula. 00:34:00.969 --> 00:34:05.799 Cal-Am asks the CPUC to increase its revenues for water 00:34:05.809 --> 00:34:14.208 services in the Monterey Peninsula by $55,771,300. This 00:34:14.219 --> 00:34:18.619 spread across 3 years. I urge this Commission not 00:34:18.628 --> 00:34:22.958 to approve Cal-Am's request. There is no justification 00:34:22.969 --> 00:34:26.958 for this rate increases. We in the Monterey Peninsula 00:34:26.969 --> 00:34:30.039 already have some of the highest water rates in the 00:34:30.050 --> 00:34:33.949 nation, if we're not the highest. The problem is the 00:34:33.958 --> 00:34:37.860 problem as I see it. Cal-Am continually asks for 00:34:37.869 --> 00:34:42.000 rate increases outside the General Rate Case increase. 00:34:42.387 --> 00:34:46.168 Is the CPUC keeping track of the cumulative rates 00:34:46.177 --> 00:34:49.947 from all this balancing in memorandum accounts. That 00:34:49.958 --> 00:34:56.110 are that are added to the GRC increases. This proposed 00:34:56.119 --> 00:35:00.289 rate increase is not only exceed the general rate of 00:35:00.300 --> 00:35:05.280 inflation. But they would also add to the inflation 00:35:05.289 --> 00:35:10.280 rate itself. The various businesses usually pass 00:35:10.289 --> 00:35:14.300 this cost on to the consumers. By increasing the price 00:35:14.309 --> 00:35:17.820 of the product or services they provide. This high 00:35:17.829 --> 00:35:21.500 cost of living in our Monterey Peninsula is creating 00:35:21.510 --> 00:35:25.219 much hardship for many families on limited income, 00:35:25.760 --> 00:35:29.070 especially for them. Many of these families are not 00:35:29.079 --> 00:35:32.869 even able to apply for the lower bills, because the 00:35:32.878 --> 00:35:36.438 water is already included in the rent they pay or the 00:35:36.449 --> 00:35:40.559 Homeowners Association dues they pay. Also, we must 00:35:40.570 --> 00:35:44.494 remember that we, the ratepayer are paying for any 00:35:44.503 --> 00:35:48.503 discounts that some families may receive. Nothing ever 00:35:48.514 --> 00:35:52.735 comes from the profits that Cal-Am makes. We the ratepayer 00:35:52.744 --> 00:35:57.264 pay for all costs. While Cal-Am is guaranteed a high 00:35:57.273 --> 00:36:01.014 rate of return on their investments even on failed 00:36:01.023 --> 00:36:05.958 projects. It becomes abundant, abundantly clear to 00:36:05.969 --> 00:36:11.878 me. That Cal-Am looks to the CPUC to automatically grant 00:36:11.889 --> 00:36:15.659 their rate increases with little or no regard for the 00:36:15.668 --> 00:36:20.329 ratepayers. Who must contend with the impact of real 00:36:20.438 --> 00:36:25.860 inflation. I urge this Commission not to approve Cal-Am's request. 00:36:27.128 --> 00:36:32.909 It's not justified. Thank you. 00:36:32.909 --> 00:36:37.769 Thank you. At this time, I'm informed there are no 00:36:37.780 --> 00:36:43.128 additional speakers requesting to speak. We will take 00:36:43.139 --> 00:36:47.639 a brief 5 minute break. To allow any individuals 00:36:47.648 --> 00:36:52.360 who wish to sign up to speak, to utilize the call in 00:36:52.369 --> 00:36:57.228 feature to do so. This will be your last opportunity 00:36:57.239 --> 00:37:00.679 to sign up to speak during this Hearing. We will come 00:37:00.688 --> 00:37:06.780 back on the record at 6:55pm. Thank you. We are 00:37:06.789 --> 00:37:11.829 off the record. Hearing is again in session. Operator, 00:37:11.840 --> 00:37:15.110 do we have any additional individuals wishing to speak? 00:37:16.958 --> 00:37:19.688 Your Honor? I'm showing no additional speakers that 00:37:19.699 --> 00:37:27.139 like to speak. All right. It is now 6:55pm. We 00:37:27.148 --> 00:37:30.418 have no more speakers on the line. 00:37:30.418 --> 00:37:33.219 I want to say thank you to everyone who participated 00:37:33.228 --> 00:37:37.559 today. Before we adjourn, Commissioner Shiroma do you 00:37:37.570 --> 00:37:41.000 have any additional comments? 00:37:41.000 --> 00:37:44.889 Uh yes, thank you Judge. I just wanted to thank all 00:37:44.898 --> 00:37:48.648 of the presenters. Want to thank the public that tuned 00:37:48.659 --> 00:37:54.099 in. The speakers who commented at this Public Participation 00:37:54.110 --> 00:38:01.878 Hearing. And also the um, team that uh, took care of logistics 00:38:01.889 --> 00:38:07.059 for the Hearing. Uh, this is kind of a rare day where 00:38:07.070 --> 00:38:12.079 the adminmonitor uh had, had hiccups both in the 00:38:12.090 --> 00:38:15.099 afternoon and this evening. But uh thank you, Judge 00:38:15.110 --> 00:38:19.418 for navigating that uh, for us. Uh, and I look forward 00:38:19.429 --> 00:38:24.639 to the next Public Participation Hearing uh in, uh Rancho 00:38:24.648 --> 00:38:28.289 Cordova. On uh, Thursday starting at 2 o'clock, I'll 00:38:28.300 --> 00:38:33.070 be there. Thank you back to you. Thank you, Commissioner 00:38:33.079 --> 00:38:36.489 Shiroma. I, I want to remind everyone that you will 00:38:36.500 --> 00:38:39.938 be able to submit written comments by visiting the 00:38:39.949 --> 00:38:43.550 link shown on the screen. Click the public comment 00:38:43.559 --> 00:38:49.050 tab at apps.cpuc. 00:38:49.059 --> 00:38:54.099 ca.gov/c/ 00:38:54.898 --> 00:39:01.800 A2207001. If you need assistance, providing additional 00:39:01.809 --> 00:39:05.039 comments. You may also contact the Commission's Public 00:39:05.050 --> 00:39:11.809 Advisers Office at public.advisor@cpuc. 00:39:11.820 --> 00:39:16.699 ca.gov As a reminder, there will be 00:39:16.708 --> 00:39:20.449 6 additional Public Participation Hearings. These 00:39:20.458 --> 00:39:26.059 will be held in-person at 2 and 6pm. First, on 00:39:26.070 --> 00:39:29.769 April 13, this coming Thursday at the Rancho Cordova 00:39:29.780 --> 00:39:37.050 City Hall. The next will be on April 25 at the Seaside 00:39:37.059 --> 00:39:43.409 City Hall, and finally on May 2 at the Thousand Oaks City 00:39:43.418 --> 00:39:48.418 Hall. This concludes today's Public Participation Hearing. 00:39:49.300 --> 00:39:52.599 Thank you to everyone for your participation, for your 00:39:52.610 --> 00:39:55.688 patience with our technical issues and to all of our 00:39:55.699 --> 00:39:59.699 Staff. Who, who have assisted in ensuring that the public 00:39:59.708 --> 00:40:02.090 has an opportunity to be heard in this proceeding. 00:40:03.260 --> 00:40:06.030 We are off the record. Good evening.