LUCERNE, Calif. – A public hearing on a proposed water rate increase for Lucerne residents is set to take place next week.
The California Public Utilities Commission will host the meeting on California Water Service Co.’s proposed rate increases beginning at 6 p.m. Friday, April 12, at the Lucerne Alpine Senior Center, 3985 Country Club Drive.
It’s one of a series of public participation hearings to take place in Cal Water’s districts throughout the state between April 8 and May 23.
Last year Cal Water applied to the CPUC seeking rate increases in all of its districts totaling $92,765,000 or 19.4 percent in 2014; $17,240,000 or 3 percent on Jan. 1, 2015; and by $16,950,000 or 2.9 percent on Jan. 1, 2016.
In the Redwood Valley-Lucerne Service Area, Cal Water proposes rate increases of $818,000, or 57 percent in January 2014; and of $48,700, or 2.2 percent, in January 2015; followed by a decrease of $27,400, or -1.2 percent, in January 2016.
The rate application explains that Cal Water is offering two options for the rate increases, a phased-in approach that it says will cost ratepayers in Lucerne an additional $451,450 due to interest collected in the second and third years – but which the company believes will have less impact on ratepayers – and a non-phased-in approach.
In Lucerne the phased-in rates would total $430,250, or 30 percent, in 2014; followed by an increase in revenue by $430,250, or 23.1 percent, in 2015; and $430,250, or 15.8 percent, in 2016.
If rates were not phased in, they would be $818,000 beginning in January 2013; $48,700 in January 2015; and -$27,400 in January 2016.
It’s estimated that the bill for a typical customer using 5 CCF of water per month – one CCF is 100 cubic feet – would rise from the current rate of $62.85 to $124.22 under the phased-in plan and would top out at $104.59 under the plan with no phase-in.
Cal Water is seeking the rates to cover the following expenses, according to the application:
- $136,000 – district operations and maintenance costs;
- $108,000 – employees;
- $103,000 – water infrastructure improvements between 2013 and 2016;
- $43,000 – increased purchased water expenses due to an increase in the unit cost of power;
- $38,000 – to retain the same level of employee health care, pensions and retiree health care benefits for general office personnel, which the company said has increased faster than inflation.
An administrative law judge will preside over the hearing in order to take community comment on the proposed rate hikes.
Additional details about the proposed increases can be found at www.calwater.com/rates/grc or at https://www.calwater.com/bill_inserts/luc/20130325_Notice_of_public_participation_hearing_-_Lucerne.pdf .
Cal Water customers who are unable to attend the hearing or who wish to file comments directly with the Public Advisor’s Office can send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. ; write to Public Advisor’s Office, 505 Van Ness Ave., San Francisco, CA 94102; or call 415-703-2074, toll-free 866-849-8390, TTY 415-703-5282, TTY toll-free 866-836-7825. Reference the formal application A.12-07-007 when contacting the CPUC.
All comments will be circulated to the commissioners, assigned administrative law judge and other CPUC staff working on the Cal Water proceeding.
A copy of Cal Water’s application and further information may be obtained from the company’s local offices by calling 707-274-6624, visiting http://www.calwater.com/rates/grc or contacting Cal Water’s headquarters at 1720 N. First St., San Jose, telephone 408-367-8200.
Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.