James Hunter

Monday, May 4, 2015

SJWC Rate Increase, June updated to 15th, 2015

Did you receive this Public Notice or read it in the San Jose Mercury News? The entire text of the CPUC AL 486 request is available on the SJWC web site, but is hard to find. I found it by doing a search on "CPUC", on the web site, as there didn't appear to be easily found link in the general pages.

This rate increase be a surcharge on your SJWC bill, in a separate line item:
Apparently this only represents the actual line item on your bill, in addition there is a San Jose City Utility of an added 5%. If we check the math, SJWC estimates a consumer user of 15 CCF bill will increase from $78.90 to $81.60, a $2.70 increase, 3.42%, but if we add the City Tax of 5% the increase becomes a 3.42% increases to 3.59% and the impact on your bill is an increase to $81.73.  This is minor but takes the view of the impact on what we spend, as well as takes into account a long dry summer with likely additional increases caused by the drought, as the cost of water increases and we conserve more. 

The MCRAMA (Mandatory Conservation Revenue Adjustment Memorandum Account), if you read the entire text this surcharge is to collect $9,566,814 of uncollected revenue due to us (ratepayers/consumers) conserving water and as a result decreasing SJWC revenues.

It seems we're again paying more for less water and guaranteeing a "for profit" corporations' profits.

 The present General Rate Case 1501002, also has another request, to CPUC in the served Exhibit H for a complete decoupling of SJWC revenue from sales and operations. Adjustments are likely to be requested more frequently as the drought continues with no motivation, for SJWC, to become more cost effective. SJWC obviously looks at it as removing their incentive to sell more water.........not to make their operations and defer large expenses that won't contribute to controlling costs during the drought.

A separate posting will be made to the blog looking at the WRAM (Water Revenue Rate Adjustment) justifications, motivations and it's effects on water conservation efforts. Is it possible that SJWC feels it needs to prepare for implementing the full decoupling of revenues from operations and this is a step in it's preparations?

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