James Hunter

Sunday, November 22, 2015

SJWC is requesting $150,000,000 yes SJWC that's $150 million dollars, reference A1508016

August 21, 2015
San Jose Water Company
Application of SAN JOSE WATER COMPANY (U168W), a California corporation, for an order to authorize the issuance and sale of additional debt and equity securities not exceeding the aggregate amount of $150,000,000 and other related requests.
ALJ: Adeniyi A. Ayoade (Assigned Aug 28, 2015) COMMISSIONER: Catherine J.K. Sandoval (Assigned Aug 28, 2015)

San Jose Water Company has certainly “quietly” handled this request to CPUC to raise $150,000,000 for a variety purposes. The SJWC Application is available online from CPUC. In particular it was requested that Public Notice is not necessary, see page 11. Again parts of the application were served to CPUC, but were not published. We continue to see SJWC apparently try to obscure information from the ratepayers or make it difficult to obtain, in my opinion. It should also be noted that the $150.000.000 would pass through apparently, SJW Corp., since SJWC supposedly the recipient of the funding, it raises the concern about the use of the funds for purposes other than SJWC. Note, the comment quoted below "use of proceeds for acquisition of existing water systems"? SJW Corp. using proceeds to buy another water system in California or Texas? I generally get concerned when there's an apparent limited visibility into operations that may affect the use of funds and potentially result in rates being increased, in the future.

This appears to say that there will be no rate increases, oops! Reading carefully it says this doesn’t propose a rate increase, so no notice to customers is required. It seems difficult that spending $150,000,000 will not have an effect on rates, either in the ROE 9.99% calculation or in “guaranteed” 8.08% profit. . . . . It does say that, "above those authorized by prior Commission decisions". Sounds to me that it's a two step strategy, (1) get CPUC approval or have a Full WRAM and the second step is to RAISE RATES! I'd appreciate readers comments on this understanding, of the application verbiage.
The schedule proposed by the applicant, SJWC, is quite aggressive. Presently nothing has been posted on the CPUC website since October 5, 2015 when the ALJ requested a reply within 15 days, oops! that was 10/20/2015 and there has not been a response from SJWC. That's 34 days late apparently, unless this was a confidential response.

I really appreciate that we the ratepayers may be funding the acquisition, of another water company or as the application says "acquisition of existing water systems", with some part of the $150,000,000. Who is the existing water system? Great Oaks Water Company or the remaining part of the City of San Jose  water system?

The ALJ has requested clarification of certain financial estimates in the Ruling dated 10/05/2015, “ADMINISTRATIVE LAW JUDGE’S RULING DIRECTING APPLICANT TO FILE A RESPONSE TO INFORMATION REQUEST WITHIN 15 DAYS”.

So, we find ourselves as ratepayers looking forward to a Happy Thanksgiving and again we’ll be getting the bird. It really seems committing to $150,000,000 that will despite comments “probably” will affect (that means increase) our water rates.  The questions the ALJ posed were focused on where the money was supposed to be spent on, not on whether the requirements were reasonable technically. The CPUC Commissioners already classified the proceedings, “No public review or comment is required for this resolution pursuant to Rule 14.7. “.

The next questions are will the SJWC response to the ALJ Ruling be available, to the public? I own 10 shares of SJW Corp. common stock, as a shareholder (very, very, small) when will I get notice of being diluted by the sale of more stock? I thought we were starting the beginning of a new day of transparency and openness, on the part of CPUC? Oops, Governor Brown vetoed those laws.

A1508016 Proceedings are available from CPUC online.

If you're concerned about how these funds will be used by SJW Corp./SJWC send email to:

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 currently contested issues and continuing requests to de-couple their revenue from the requirement to do business efficiently and your concern about their lack of openness and transparency. 

Please consider pasting the following, or parts you agree with, when you fill in the eForm:
"I am concerned about the $150,000,000 funding package that SJW Corp./SJWC has submitted an application (A1508016) to CPUC, for approval. I'm concerned about the potential effect this may have on increased future water rates, the possibility of these funds being used by SJW Corp. to fund the acquisition of existing water systems, the concern of mixing the funds within the two corporation SJW and the regulated water utility SJWC and the continuing practice making access to information by ratepayers difficult, which is apparently not fully supporting the openness and transparency that CPUC and a majority of elected officials in Sacramento appear to support."
CPUC Public Advisopublic.advisor@cpuc.ca.gov  Reference San Jose Water Company (SJWC) A1508016.The Public Adviser will insure your email will be sent to all the appropriate CPUC staff members and commissioners. 

Other people to drop an email (note) and express your opinion are:

No comments:

Post a Comment