James Hunter

Sunday, August 10, 2014

San Jose Rate Increase, How much will we pay?

San Jose Rate Increase, How much will we pay? CPUC will vote Thursday 14th August 2014

CPUC will consider the ALJ Proposed Decision, Comments and Replies from SJWC & ORA, at the Consent Hearing in 4 days!

The estimated cost to ratepayers is estimated at $22,063,000 (yes that's millions), so if we divide the 22 million by the approximate number of SJWC water connections 225,000, it appears to be about $100 over three years. If we look at the Proposed Outcome below, $7.96 is estimated the monthly increase, in 2013 test year, plus higher rates in 2014 and 2015. it's possible to estimate $8.00 per month times 36 months gives us $288 total increase?

Fellow ratepayers I'm confused! After 30 months of negotiation between SJWC and ORA/DRA, with CPUC representing "our interests" the increase seems greater than the estimated 22% or the original mythical 44% . As a matter of fact an increase of 20.8% is referenced in the Consent Hearing "Proposed Outcome" for the test year of 2013.

See page 2 of the Office of Ratepayer Advocates, Comments. ORA disagrees:
Using the rates indicated in Table I of the PD’s Attachment A, a residential customer with a 5/8”by 3/4” meter using 15 ccf per month would incur base rate charges of $67.41 (not including surcharges), which is significantly higher than the $46.20 indicated on page 2 of PD. 
This indicates the minimum increase would be $67.41 - $38.24 = $29.17 which is 

a staggering increase of 77%
(for the test year of 2013)

 As at ratepayer I'd like to see the number that CPUC will consent to and what are we really going to have to pay, before they vote! So to be fair it's very complicated ............... the other implication is the effective increase is really not $22 million, it's really, if we take $29.00 monthly increase x 36 months = $1044 x 225,000 =  $251,100,000

$235,000,000 that's a really big number
(my calculator must be broken)

Is it unreasonable to expect to know what CPUC is going to vote on? Is it unreasonable to question whether CPUC Commissioners know what they're voting on? Is it unreasonable to know much we'll pay to SJWC per month? CPUC needs to tell us the (ratepayers) what their going to vote on - on Thursday in 4 days!

Public Agenda 3340                                                                                 Thursday, August 14, 2014
Consent Agenda - Orders and Resolutions (continued)

18                                 San Jose Water Company's General Rate Increase for 2013,
[13130]                        2014, and 2015

In the Matter of the Application of San Jose Water Company for an Order authorizing it to increase
rates charged for water service by $47,394,000 or 21.51% in 2013, by $12,963,000 or 4.87% in 2014, and by $34,797,000 or 12.59% in 2015.

  • Authorizes San Jose Water Company (SJWC) to increase rates by amounts designed to increase revenue by $22,063,000 or 9.79% in its test year 2013, $11,579,000 or 4.72% in 2014, and $15,356,000 or 6.02% in 2015.
  • As a result of the revenue increase granted by this decision, the monthly bill for the average SJWC residential customers using 1500 cubic feet of water with a 5/8" by 3/4" meter would increase by $7.96 or 20.8% to $46.20 from $38.24 for the test year 2013.
  • Closes the proceeding. 
  • Pursuant to Public Utilities Code Section 451, SJWC must take all actions necessary to promote the safety, health, comfort, and convenience of utility patrons, employees, and the public.
  • $22,063,000.
(Comr Sandoval - Judge Wilson)
htp://docs.puc.agov/SearchRes.apx?docfrmat=AL&docid=9840303 ** Proposed Decision

Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

If you think the participants should be able to tell us (ratepayers) how much we'll pay for water, to San Jose Water Company , after 30 months of negotiating, please do the numbers and send an email.

Please send email, make your opinion heard!

 If you are concerned about these 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 Rate Increase and the simple fact that we don't know how much were going to pay monthly, to SJWC, for our water and we're not sure CPUC knows! and they plan to vote in four days.

You can also send an email to CPUC Public Advisopublic.advisor@cpuc.ca.gov  The Public Adviser 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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