James Hunter

Friday, June 13, 2014

Will SJWC (GRC) include Homeserv USA revenue sharing with ratepayers?

Based on statements by SJWC management it appears in the next several months the GRC (General Rate Case A1201003) increase will go to CPUC for review and approval. Cal Water agreed, in it's last GRC to pay it's ratepayers a share of the Homesrv USA non-regulated revenue, as is done for example, cell phone antennas, space rental, on a water utilities buildings.

    Service Line Insurance Billing
        In 2008, Cal Water filed an application requesting a CPUC finding that past and future non-regulated transactions with HomeServe USA, aprovider of service line insurance, were in compliance with Commission rules. The CPUC subsequently established a memorandum account to record Cal Water's revenues and expenses related to the billingand other services provided to HomeServe USA. In a decision on February 28, 2013, the CPUC approved a proposed settlement agreement between Cal Water and the ORA resolving all issues in theproceeding, and authorized Cal Water to continue providing billing services to HomeServe USA. Consistent with the settlement, in April 2013, Cal Water began amortizing a portion of the memorandumaccount balance, as required by the settlement, through surcredits to residential ratepayers over a 12-month period. New rates adopted in the pending GRC proceeding will include a forecast of thecosts and revenues associated with this billing service. After the new rates go into effect, Cal Water will amortize the remaining balance and close the memorandum account.

In the case of San Jose Water Company there has not been a mention of revenue sharing with ratepayers, from Homeserv USA.

Cal Water pays 10% of the insurance premiums and the "anniversary or exclusivity" annual payments with it's ratepayers based on an agreement with ORA/DRA and approved by CPUC.

  • What percentage of the Homesrv USA premiums ratepayers pay is SJWC getting?
  • Is SJWC getting an annual fee (anniversary or exclusivity) from Homeserv USA?
  • Since the terms have been negotiated and approved, with Cal Water, by ORA and CPUC, why can't it be included in the current GRC (General Rate Case A1201003)? or will the excuse be the amount of time required? We're already late by over 16 months.
If your concerned about the potential  San Jose Water Company accounting for Homeserv USA revenues and  properly, transparently disclosing what is done with the revenues and what do we ratepayers should receive? Send an eMail as shown below and ask CPUC what do we get, how and when?

If you are concerned about the issues, send email to CPUC at:
District 5 United eForm eMail  Simply click on the "eForm eMail" and you will get a page to fill out the information and specify the reason for your opposition to the SJWC 44% Rate Increase, Homeserv USA water pipe insurance and your opinion of SJWC Customer Service and your concern about lack of openness and transparency, as well as concerned that we are not being informed in a timely manner, of the status of the 44% Rate Increase!

You can also send an email to CPUC Public Advisopublic.advisor@cpuc.ca.gov  The Public Advisor will insure your email will be sent to all the appropriate CPUC staff members.

Other people to drop an email (note) and express your opinion are:
  • Scott Herhold, San Jose Mercury News, sherhold@mercurynews.com
  • Julie Putnam, NBC Channel 5, julie.putnam@nbcuni.com

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