James Hunter

Sunday, May 31, 2015

SJWC Pubic Hearing Thursday 5/28/2015, Public Speakers Comments

Comment from the blogger to readers: I'll try to post the comments made by Public attendees that spoke at the Public Hearing, "Notice of Proposed Contingency Plan with Staged Mandatory Reductions and Drought Surcharges and Public Hearing". The Public Hearing was held on Thursday, May 28, 2015, 7:00 PM, Rotary Summit Center, 88 South 4th Street, San Jose, CA 95112.  I'll make an effort to be unbiased and factual, if anything is otherwise I'll note that it's a "comment or blogger" which will indicate its' editorial in nature or a comment from the blogger (me).

Blogger: "Attendance was estimated by one reporter at 350 attendees. After the opening slides by SJWC the floor of the meeting was opened for the Q&A session. The Q&A session lasted close to 3 hours. Attendees stood in line for as long as 2 or more hours waiting for an opportunity to speak. Everyone seemed to feel the drought was important, but the Program announced by SJWC was flawed, unfair and the drought surcharges too high." There was a strongly voiced feeling that the SJWC Drought Program submitted to CPUC was very unfair, in many specific areas, to the attendees at the Public Hearing. When it became apparent based on statements by SJWC that the comments (public input) would not be considered by CPUC since no official transcript or recording was being made.  Contrary to the information published by SJWC and mailed to its customers. Public Speakers and the audience expressed their unhappiness about this. There was some bo's and more than a bit of heckling from the audience.  In general it would appear that the Public Hearing was likely an embarrassment or worse to SJWC, it appears in retrospect SJWC should be glad only 350 ratepayers/customers made the effort to participate and only about 25% were willing to stand in line, up to over 2 hours,  to voice their opinions and offer their public input.

The following issues/problems were raised by public speakers:
  • The Monthly "Draft" Drought Allocation was felt unfair as it was established based on 70% average monthly use by month by SJWC, for residential use.
  • Public speakers felt that apartment buildings and businesses were unfairly exempted from the conservation program.
  • The 30% monthly reduction, compared to 2013 months, based on a SJWC average, as well is 20% being the State requirement, unfair when the requirement was less..
  • Public speakers were very upset when it became apparent that no transcription or official recording was made, not allowing their comment to be considered by CPUC in making a decision on the SJWC Drought filing, Advise Letter # 473.
  • Not fair that SJWC doesn't support "roll-over" or "bank" unused Monthly Drought Allocation (CCF).
  • Public Speakers felt that the SJWC water rates and Drought Surcharges were too high. 
  • Public Speakers were concerned that collected Drought Surcharges would be used for things other than conservation related expenses, by SJWC.
  • Several Public Speakers, builders of Spas and Pools. felt the drought guidelines would damage their businesses.
  • Public speakers felt the conservation rebates were insufficient, in the areas of turf removal, plumbing upgrades (toilet replacement). and other points.
  • Public speakers with established gardens (vegetable), trees and shrubs were concerned losing plants and trees they had been growing for 10 or more years, due to water restrictions and Drought Surcharges.
If I missed a topic raised by a speaker at the Public Hearing, please add a comment to this blog posting or send me an email at j88hunter882@gmail.com and I will be happy to add your topic to the list above, as well as the commented list below. Please try to keep your comment to three lines or 250 letters whichever is lower. Please indicate if you want attribution, example "JH Almaden" otherwise it will be posted as "Comment".

Speakers made following points:
  • The Monthly "Draft" Drought Allocation was established based on the 70% average residential use of the month in 2013.
    • Many speakers felt it should be based on their actual use in 2013, not an average. "one size fits only one person well". Since many of the speakers had been actively reducing their water use for at least two years, their actual use in 2013 by month be a more fair method.
      Comment: It should be noted that California Water Systems addresses this point, as well as roll-over/banking of unused monthly water allocations. When I spoke (about 10:45 PM, one of the last three speakers) at the hearing I raised this specific item to the SJWC representatives and suggested they discuss this with their IT Department.
    • Many speakers felt it didn't adequately consider the number of people in the residence and there should be a way to adjust this. Comment: SJWC speakers did commit to setting up a procedure to appeal the number of people per residence and request relief for medical reasons.
  • Apartment buildings and business should not be exempted from the conservation filing. Commentmost of these are not sub-metered and use a single meter. SJWC representatives didn't seem to offer a satisfactory explanation, other than landscaping companies were not exempted and that was a portion of the water use that could be monitored, but didn't explain how?
    • The 70% Drought Allocation , a 30% reduction 0f the 2013 average each month, was a concern for speakers. Comment: The Governor's Executive Order requires a mandatory statewide cumulative reduction in water use, of 25%. Further there are percentages established by the CA State Water Board for 433 cities or districts in nine tiers. The amount of reduction goes in steps from 4% to 36%. SJWC and the City of San Jose Water service are both 20%. The Santa Clara Valley Water District increased this to 30%, the stated reason was the over pumping of groundwater was causing the ground to sink, in areas of the valley. In the event of subsidence (sinking) damage could occur to roads, sidewalks) underground pipes (gas, water, telephone, TV, etc.), residences and other buildings. The aquifer can also be damaged by removing too much groundwater and reducing its future storage capacity.
    • Speakers found out in the process of the Q&A that neither CPUC or SJWC were making an official transcriptComment: The speakers and it seemed a majority of the 350 attendees that the purpose of the hearing was not honest, but simple way to check off a required legal step. Speakers questioned that there was, No intent to submit the public input to CPUC for consideration. This appeared to be confirmed by SJWC representatives, that consideration would be given at some point in the future when SJWC could revisit the points, since the package was already in-process at CPUC and no changes were possible.
    • Speakers raised the question can they "roll-over" or "bank" unused Monthly Drought Allocation (CCF).  Comment: SJWC representatives indicated that this could not be done? Whether at all or do to other SJWC management determined restrictions. It should be noted that California Water Systems offers a "roll over".
    • Many speakers raised a concern about the water rates and Drought Surcharges, being too high. Comment: There is another General Rate Case being processed requesting another 21% increase for 2016, 2017, 2018, inflation is less than 3%, so their asking twice the inflation rate? SJWC apparently rushed to get a $0.56 rate increase, to balance accounts, in place by May 2015. SCVWD just increased the pump tax (charge to pump water from the ground water in Santa Clara Valley.
    • Many speakers raised the concern that the collected Drought Surcharges would be used for other than actual drought related costs. Comment: SJWC representatives responded that collected Drought Surcharges (penalties to use the un PC word) only with CPUC approval. Given the current questions as to whose interests they (CPUC) represent and investigations of the past - President and his Chief of Staff just retired from CPUC, the last position of the ex-Chief of Staff was apparently for the CPUC Director of the Water department. Does anyone else harbor any reservations regarding potential bias or the possibility of less than ethical actions? A lot of attendees at the hearing may harbor some concerns, from their comments.
    • There were several speakers that are active in the pool and spa business, they indicated a significant unemployment due to the drought restrictions. Comment: They had a valid concern of the economic and employment effects to their businesses.Unused pools also represent a health hazard (mosquitoes). Blogger: To be fair the complaints are even louder from the agricultural segment, their water allocations in many cases have been cut to 0% - in the Central Valley that's right none. I hope anyone that reads this will begin to understand the severity of the drought now and much more severe if it continues into 2016 or 2017.
    • Public speakers felt that conservation rebate programs were not effective and an added cost to SJWC customers. Some of the rebates are offered and managed by Santa Clara Valley Water District (SCVWD). Comment: There seemed to be a general feeling that the rebates were inadequate to compensate ratepayers, for the out0of-pocket costs. Blogger: The current filing by SJWC for their next General Rate Case GRC 1501002, while speaking "glowingly" of the success it appears that only 1-2% of the SJWC have participated. In the final analysis it seems apparent that the economic benefit to the SJWC, would be more effective than trying to appeal to altruism, which doesn't pay the customers bills!   Sounds like a good topic for a posting to this blog!
    • Public speakers with established gardens (vegetable), trees and shrubs were concerned losing plants and trees they had been growing for 10 or more years, due to water restrictions and Drought Surcharges. Comment: This really is in a major part related to the SJWC establishing an arbitrary rationing system based on 2013 monthly average use. All of the speakers indicated they have reduced their water usage compared to their 2013 usage by 30% or more. The financial impact will be significant as a result of the very high Drought Surcharges (really penalties) and they would have to let much of their plantings, trees and shrubs die from lack of water. 

    Friday, May 29, 2015

    SJWC Public Hearing, May 28, 2015 CPUC Complaint Filed

    The following complaint (for lack of another term) was filed at 4:15 PM, 5/29/2015 since it was very unclear at the Public Hearing when the opportunity to file a ratepayer/consumer complaint ended, with CPUC. A copy was also sent to "Public.advisor" <public.advisor@cpuc.ca.gov> and receipt was confirmed by Their auto email responder at 4:59 PM, 5/29/2015. 

    The Complaint focuses on the effective date a complaint can be filed and requests the 20 day period for filing complaints start on May 19, 2015, first date published in the San Jose Mercury News. The second part of the complaint focuses on the lack of a of an official transcript, casting doubt on whether the Division of Water & Audit could make an informed decision that would take into account public input at the hearing. The third point was based on statements made by SJWC Officers at the Public Hearing that the current Advise Letter # 473 was in process and "could not be modified". 

    A separate post to the blog will specifically address a summary of concerns, complaints, and questions many people who stood in line for an opportunity to speak, for up to 2 hours and 45 minutes, at the Public Hearing.
    =============================================================
    California Public Utilities Commission
    Division of Water & Audit
    505 Van Ness Avenue
    San Francisco, CA 94102

    CC: Regulatory Affairs
    San Jose Water Company
    110 West Taylor Street
    San Jose, CA 95110

    Subject: Complaint regarding the conduct and procedures used at the:

    pg1-header.jpg


    To Whom It May Concern:

    I am submitting a complaint regarding the Public Hearing I attended on May 28, 2015, at the Rotary Summit Center, 88 South 4th Street, San Jose, CA 95112, at 7:00 PM. The Public Notice regarding this meeting stated the following:pg1-0615-about-public-input.jpg

    The current schedule that has been followed by SJWC has been:
    1. Advise Letter # 473 was submitted or dated to CPUC on May 11, 2015, the Notice of the Public Hearing was published in the San Jose Mercury News on Tuesday, May 19, 2015, 20 days after this date is June 8, 2015. The Public Hearing was held on May 28, 2015, as a result only 1 working day is available to ratepayers to file a complaint, from the filing date with CPUC. The actual date of publishing the Public Notice May 19, 2015, in the San Jose Mercury News, consideration should be given, by CPUC,  to extending the period that ratepayers may submit a complaint till a minimum of June 8, 2015.
    2. No evidence of a transcript or recording was seen at the Public Hearing, at most reports by the Press and some casual handwritten notes were made by the representatives of SJWC.
      Lacking a transcript how can CPUC, Division of Water & Audit make an informed decision and “a thorough investigation of of SJWC’s request”, in the absence a transcript containing “public input”.
    p6-public-hearing.jpg

    1. It was stated during the Public Hearing that changes could not be made in the content of the filing contained in Advise Letter # 473 submitted and in-process with CPUC Division of Water & Audit, by a representative of SJWC in response to several public questions. SJWC representative did say that in the future the issues being raised “could be revisited”. The roughly 350 attendees to the Public Hearing seemed to have difficulty with this SJWC statement. California Water Services for example re-submitted their Advise Letter # 2168 and Tariff during the consideration period by CPUC.

    For your convenience the San Jose Mercury News article by Paul Rogers is available online at:


    Additional information, on the Public Hearing and this email, will be published on the Blog at:


    Thank you for your consideration,

    James Hunter
    j88hunter882@gmail.com
    =============================================================
    ***my address and phone number redacted for privacy reasons***

    Wednesday, May 27, 2015

    SJWC Public Hearing, Rotary Summit Center, Drought Issues

    The Rotary Summit Center only has "paid parking", the parking fee is $5.00 between 6:00 PM to 6:00 AM. San Jose Water Company has not said if "Validated parking is  available".  Click here for more parking information.

    Entrance to parking is at 44 4th Street, elevators are on the 4th Street side of the parking. The Rotary Summit Center is on the 7th Floor.  4th Street is one-way towards San Fernando Street, please see the map below.





    Several points may be of concern and you may wish to consider speaking at the Public Hearing. Currently we are at Stage 3 Severe drought, we have 9 levels of conservation from 4-36% and a Statewide reduction of by Governor Brown's Executive Order, of  25%.

    The SJWC filed a tariff in accordance with Rule 14.1, but announced that consideration would be made for residences with more than 2 occupants, there should be more info announced by SJWC, at the Public Hearing..

    California drought: San Jose Water Company to allow extra drought allocations for larger families

    Some background on the Drought Surcharges.

    The range of reductions varies from 4%-36%, generally higher in Southern California,
    http://www.mercurynews.com/drought/ci_28052142/california-drought-first-ever-mandatory-water-conservation-rules    at bottom, of the article, is the complete list of state required reductions, by City and Water Company. San Jose City is 20% (page 3), San Jose Water Company 20% (page 4).

    While San Jose has allocations of 80%, the Santa Clara Water District and the City of San Jose agreed to decrease the allocation to 70%, SJWC responded by submitting an updated Tariff which is based on the 70%
    http://www.valleywater.org/EkContent.aspx?id=12380    Santa Clara Valley Water District County was voluntarily calling for 20% starting in 2014, got 13%. So used this as a basis of justifying 30%...................also the groundwater levels we pump from are down 30-40 feet, 1/3 of the available water, San Jose uses. SCVWD is also increasing the pump tax, this increase will be showing up as an increase in our basic rates and on our bills from SJWC.

    Lots of variation in the penalties (drought surcharges) across the State. Some cities have opted for the 20% or 25% surcharge on all water use plus an added excessive usage of double the effective underlying rate per CCF, for use above individual customers 2013 water usage. Lots of things that are different from the Drought Surcharge proposed by SJWC. Public Hearings are being held through the middle of June, so until the other Cities and Water Companies in California file the drought tariff and publish information on their tariff will we be sure where SJWC, SCVWD and the City of San Jose proposed tariff is in relation to the other water suppliers. 

    CPUC has also published a Drought Procedures document:


    Please see my posting on SJWC drought windfall profits:


    SJWC is supposed to use drought surcharges collected to pay for conservation costs and then apply available funds to delay future increases, to their customers. ORA also opposes a significant increase in water conservation expenses, based on providing 2,000 low flow toilets per year to SJWC customers Since SJWC has 200,000 customers/connections it appears to me it would take 100 years for some SJWC customers to get a toilet, from the program..............

    My thanks to Jim Boothe, Program Supervisor for the CPUC's Division of Water and Audits in San Francisco, for his email clarification of the use Drought Surcharges, by SJWC.

    I'll be adding a blog post on one of the pending issues in the current GRC 1501002 asking for a complete decoupling of sales and revenues, from the CPUC guaranteed 8.08% profit. Presently the Office of Ratepayer Advocates has opposed providing a full WRAM (Water Rate Adjustment Mechanism), to SJWC. We the ratepayers currently guarantee the profit for 8.08% for SJWC, what benefits do the customers get if SJWC gets approved for a full WRAM? What benefits does SJWC get? So far SJWC has shown that getting a full WRAM is worth about $700,000 per year, unless they get to pass the cost through as a conservation expense.

    SJWC has indicated the cost per toilet would be $320 including actual installation. They try to justify this by saying there will be a significant savings in water use in the low flush toilets, but they attach the requirement that they get a full WRAM to protect their revenues and profits. Well I'd say we have at least the initial bid from them, as someone who spent years negotiating, is probably low from our viewpoint. The other problem is this offer only applies to 1% of the customers each year. Lots of ethical issues are raised in addition to the value, to SJWC value questions.

    Note: The largest single contract negotiation I was responsible for was 122 million dollars (1982 dollars).

    Lots of questions only a few answers that make sense. Let's all keep in mind we all should be concerned about the drought and the only short term "guaranteed" solution is "conservation". Especially if the drought continues for one or more years. Let's conserve, but be sure that the rules are applied in a reasonable fashion and the funds from drought surcharges are used to really help customers/ratepayers conserve water. Let's look at the financial impact of the changes on us and make sure that there is also a positive incentive to conserve as well as a negative incentive.

    Tuesday, May 19, 2015

    San Jose Water Company Water Rationing 15 June 2015

    Updated 05/28/2015


    The Mercury News published table showing the water rationing effective 15 June, 2015, for customers of the San Jose Water Company (SJWC). The State Water Resources Control Board adopted a resolution to reduce water consumption by 25%, statewide. This was then used as the basis of a resolution by CPUC and sent to the water utilities, including San Jose Water Company (SJWC).

    This is more difficult for SJWC customers to understand, as our SJWC is bimonthly, billing is by two month periods. My water bill (redacted to protect personal info) is used as an example:


    Blogger comment: Yes, I also reduced my water consumption by (21-14) = 7,  7/21 =  33% savings over the same period in 2014 and I'm 4 units below the allocation target of 18 units for the 2 month period. I always thought the "Brown is the new Green" was coined by the Governors re-election team. I'm pretty conservative, but he's stepped up to most challenges....................except may be CPUC.  I'd say water under the bridge, but we may not have enough to spare.
    • The penalty charges are also a bit confusing, current rates then in effect apply:
      • 0-3 units (CCF)  -  $3.20706
      • 4-18 units (CCF) - $3.56340
      • 18+ units (CCF)  - $3.91970
    • The 30% difference between your current used units and the monthly 2013 unit average use the applicable additional surcharge:
      • $3.56340 per unit penalty added to the base current per unit charge of $3.56340, you would pay $7.13 per unit
    • All units used above the the applicable monthly 2013 average will pay the base applicable unit charge $3.56340 (currently for units used from 4-18) an added penalty of $7.12680  per unit or apparently $10.69 per unit (CCF).

    Q: What are the excess drought surcharges and how are they calculated? A: Most residential customers are billed bi-monthly. You will be charged at the current rate structure for all the units consumed. In addition to the current charges, each unit of water in excess of your allocation target will be charged as follows:

    • Drought Surcharge 1 (DS1): Excess consumption over allocation up to the 2013 monthly average will be charged at $3.56 per unit 
    • Drought Surcharge 2 (DS2): Excess consumption over the 2013 monthly average will be charged at $7.13per unit  
    What SJWC is trying to say, you get 70% of the 2013 average month water usage or a minimum of 9 CCF at the current rates for that month (red flag - your price is going up!). If you use more than 9 CCF up to the 2013 average usage you pay the basic current rate per CCF (unit), plus a drought surcharge $3.56 (red flag you will pay $7.12 per CCF or more if the base rate per CCF is higher). If your use exceeds 100% of the 2013 monthly average, you pay the basic current rate per CCF (unit), plus a drought surcharge $7.13 (red flag you will pay $10.69, more if there is a basic rate increase per CCF).

    Let's see what we would be paying per acre foot, keep in mind SJWC buys 1 acre foot from Santa Clara Valley Water District for about $875.  1 acre foot of water equals 436.5 CCF: 
    $875 one acre foot / 436.5 CCF (acre foot of water) = 
    $2.00 CCF (unit) compares with a unit over 100% 
    with Drought Surcharge (Penalty) $10.69 or means
    an acre foot with all penalties would cost
    $10.69 x 436.5 = $4,666.18, if 1% of the homes
    use 1 unit more than 100%, it would be 2,000 units
    2,000 x $10.69 = $21,380
    Blogger's note: I was so surprised I used a different calculator - this is getting to be 
    real money and we need to have a very clear statement of where it will go and what it 
    will be used for. It will only take 2,000 homes to go over, 100% allocation, by one CCF
    (unit) per month to get $21,380. We can see the Drought Surcharge can be a lot of 
    buck$. We can also see the markup SCVWD - $875 AF to SJWC $4,666
    Now that we have an idea of the penalties that are applied above the average allocation (ration) by month let's look at where the money goes and how it will be used, as indicated in the SJWC FAQ.
    Q: What will happen to the drought surcharges?
    A: The surcharges will be deposited in a drought account authorized by the California Public Utilities Commission to track lost revenues from conservation. The amount collected will offset future surcharges as a result of conservation efforts.  
    Blogger comment: Will it be used to guarantee SJWC gets it's 8.08% profit! I don't think the answer (A:) is thorough and complete? Since ORA is opposed to the annual 2,000 free toilets and installation added conservation option in the new general rate increase, is it possible that SJWC is collecting too much penalties? California Water Systems appears to be using a lower penalty rate and appears to follow the suggested Stage 3 Drought Guideline:



    SJWC ADVICE LETTER NO. 473, Page 6 
    "The proposed Schedule 14.1 further provides that all monies collected by the utility through surcharges or fees shall be booked to the WRAM or a similar memorandum account to offset recovery of lost revenues and that all expenses incurred by the utility to implement Rule 14.1 and Schedule 14.1 that have not been considered in a General Rate Case or other proceeding shall be recoverable by the utility if determined to be reasonable by Commission.
    These additional monies shall be accumulated by the utility in a separate memorandum account, for disposition as directed or authorized from time to time by the Commission." 
    Oops, SJWC doesn't seem to have a WRAM quite yet, they have requested a WRAM again in the current pending General Rate Case 1501002, but they do have a MCRAMA currently.  SJWC feels because other utilities when Mr. Peevey was the CPUC President got full revenue decoupling from operation/cost WRAMs they should get a WRAM, as well . More in a separate post to this blog soon.

    Notice for SJWC ADVICE LETTER NO. 468
    "San Jose Water Company (SJWC) has filed Advice Letter No. 468 (AL 468) with the California Public Utilities Commission (CPUC) requesting authorization to recover the accumulated balance in the Mandatory Conservation Revenue Adjustment Memorandum Account (MCRAMA) of $9,566,814, or approximately 3.4% of authorized revenue. 
    Approved, the requested increase would become effective on or about June 15, 2015. The CPUC authorized SJWC to establish a MCRAMA to track the revenue impact of mandatory conservation upon SJWC’s quantity revenue resulting from mandatory conservation instituted by the State of California and the Santa Clara Valley Water District. As directed by the CPUC’s Water Division, the increase will be recovered via a surcharge on the existing quantity rate for a period of 12-months from the date of CPUC approval."
    In other words the accrued conservation costs, will show up, in your water bill, starting in June 15, 2015 as a $0.1798 surcharge.  My posting to this blog, "SJWC Rate Increase, June 1, 2015" looks at this increase and the actual cost to you.

    Apparently SJWC has spent $9,566,814 on "conservation" as required by the State of California and the Santa Clara Valley Water District. The interested SJWC customer may be interested in reviewing, "Advise Letter 468" (AL 468), it appears that more is included in the $9,566,814 than simply "conservation". The complete text of the Advise Letter 468 is available. please click to view.  While Notices based on Advise Letter 468 seems focused on conservation (that is a lot of blue buckets, pamphlets, customer meetings, lots of aerators, square feet of turf, etc.), but I personally would like to see a breakdown on the actual conservation expenses. Since others numbers indicate the conservation efforts to date don't seem to be very effective. AL 468 seems oriented to collecting the under payments from past years, cleaning up and consolidating accounts to collect balances in various accounts so that the 8.08% CPUC approved profit is achieved and preparing for the implementation of a full revenue decoupling WRAM. Conservation and drought appear to be a fog obscuring the likely purposes.


    Collected penalties will be held in an account MCRAMA or worst case in a new WRAM and used to pay conservation related expenses, it's not clearly addressed if there is an amount larger that the the identifiable conservation expenses? I suspect if the conservation costs are covered any left over will be used to insure that the CPUC annual profit currently 8.08% is achieved.

    There will be a public hearing I encourage you to attend. SJWC ADVICE LETTER NO. 473, Page 6 :

    The Drought Procedures require that “A public hearing shall be help prior to a utility adding
    Schedule 14.1 to its tariffs.” SJWC has planned for a public meeting as shown below:
    THURSDAY, MAY 28, 2015
    7:00 PM
    ROTARY SUMMIT CENTER
    88 SOUTH 4TH
    STREET
    SAN JOSE, CA 95112 

    More information about the ROTARY SUMMIT CENTER is available at:
    http://www.clubrunner.ca/Data/5170/3975/images/Rotary_Summit_Center.pdf

    Parking, Evening Rate Enter After 6pm Exit by 6am  $5.00
    http://sanjoseparking.spplus.com/san-jose-44-south-4th-street-parking.html#Tab_coupon-rates

    If you need handicap parking or feel $5.00 parking fee is not appropriate to a public hearing send email to: 

    Regulatory Affairs San Jose Water Company
    110 West Taylor Street San Jose, CA 95110 
    Fax 408.279.7934 
    Regulatoryaffairs@sjwater.com

    Request "Validation" of your parking ticket to allow you to attend the SJWC public hearing.

    Sunday, May 10, 2015

    Homeserve USA (HEIS) and BBB Accreditation and A+ Rating

    I appreciate all comments, feedback and suggestions and a recent comment by "Michael K" (privacy respected). I was encouraged by his recent experience and his neighbors. I hope my efforts, on this blog, have encouraged and motivated HEIS (aka Homeserve USA, Home Emergency Insurance Solutions, etc.) to provide improved service and coverage to their customers.

    ------------------------------------- Comment on Blog ------------------------------------------
    Michael K********May 8, 2015 at 12:51 PM
    It might be time to update your blog... I just looked up HEIS on the web site of the CT. BBB and its rating (as of 2014) is A+. I've gotten several of these letters over the last couple of years and thrown them all away. It's clear to me that it's not from the water district, but I can see how some people might be deceived. Plus, all the alarmist text makes it sound fishy. Then my next door neighbor had a leak. He had previously gotten the insurance. His $2800 repair was completely covered. They even upgraded his pipe from galvanized to copper at no cost. I think it's important to separate the criticism about the deceptive advertising from the criticism about the coverage itself. While I agree that the advertising should be more transparent, the coverage is pretty well defined, albeit admittedly of narrow scope. Based on my neighbor's experience I plan to get the coverage, as our houses are 50+ years old, and like a prior poster said - $59 a year is cheap peace of mind.
    ReplyDelete
    Replies


    1. I'm very pleased to hear they are improving not only their BBB rating, but providing excellent service to your neighbor. Several years ago that didn't seem to be true. I hope my blog helped motivate some of the improvement. I will check their BBB rating and see what comments are being posted in the press and update the blog, as appropriate.
    -------------------------------------- End Comment on Blog -------------------------------

    I checked Michael K's reference to BBB (Better Business Bureau) and a rating of A+, in 2014. Links from excerpts are provided to the BBB web site referenced by Michael K, so content can be verified.

    I found the following that might place the comment in perspective:
    • HomeServe USA Corp.BBB ACCREDITED BUSINESS SINCE 2/3/2014
    • Since Michael didn't provide a general location, his, other than CT (Connecticut) BBB, I have to assume the service and insurance claim occurred near Norwalk, CT. or did it occur someplace else?

    BBB Accredited since 2014 for 1 year of continuous accreditation. 

    BBB has determined that HomeServe USA Corp. meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.  

    BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services. HomeServe USA Corp. affirms that it meets and will abide by the following standards. 

    "The customer review(s) below are un-filtered. These positive and negative reviews are not used in the calculation of the BBB Rating. If you wish to file a complaint and request a resolution to your issue please click here. This customer review section is not BBBs complaint resolution system. Customer Reviews are the subjective opinion of the individual who posted the review and not of Better Business Bureau. A customer review is not posted on a business if a BBB complaint on the same issue(s) is also filed. BBB cannot guarantee the accuracy of any customer review and is not responsible for the content of any customer review. Public comments are not customer reviews." 

    It appears that over the last year the Homeserve USA BBB accreditation and rating appear to be misleading. The reviews are quite negative , Customer Experience-Negative 80% and Customers will Recommend - Negative- 86.7%.
    • It should also be noted that complaints and reviews are different things to BBB. The reviews cover the period of accreditation - 1 year. The complaints appear to cover roughly 3 years? There were 302 "complaints", of which 33 were not "customer not satisfied with business response", roughly 11% of the customers were dissatisfied. I suggest the interested reader read the, "Complaint Breakdown by Resolution". You can look at the complaints which are redacted to protect complainants privacy.There is also a link to the BBB Closure Definitions. It appears to me there is a bias towards closing complaints? Readers comments are appreciated.

    Some conclusions


    It's really hard to determine if there has been an improvement in Homeserve USA customer service/support, what does the A+ rating, new since 2/2014, really signify since it doesn't seem to represent the quality/value of the product or service? BBB evaluates a published set of criteria for rating a business which includes a fair and reasonable effort to resolve customer problems, honest advertising, etc.

    BBB has also published a chart of customer complaints by type, display by clicking on "http://www.bbb.org/connecticut/business-reviews/water-and-sewer-line-protection/homeserve-usa-corp-in-norwalk-ct-87067998/complaints" then click the text link "View Complaints Summary by Type Pie Chart on HomeServe USA Corp", to display this pie chart:




    It seems obvious that Homeserve USA needs to work on "Problems with Product and Service" and Advertising/Sales, which are a bit over 82% of customer complaints.

    As a result of spending some time evaluating what the BBB Accreditation and the A+ rating that Michael K pointed out in his posting, I decided to try to find a bit more about Michael K. I should point out I've been working in the computer industry since 1967 and an Internet user since 1983, so I'm reasonably aware of publically available tools and how to use them for research. I found a Michael K who may have submitted the comment to this blog, was apparently employed by a California County in their IT Department, the County has a water district, the water district is a partner of Homeserve USA and gets compensated by Homeserve for each policy sold.  I hope that Michael K reads this and clarifies his comment a bit. Keep in mind Ian Fleming's novel Goldfinger, Moscow Rules slightly paraphrased "Once is an accident. Twice is coincidence. Three times may be a deliberate action". Just a guess that I hope is incorrect. Remember, "Trust first then try to Verify".


    Contact BBB if you have a complaint about Homeserve USA (AKA Home Emergency Insurance Solutions (abbreviation HEIS), Home Serve HomeServe. Please click on the link below:

    https://www.bbb.org/consumer-complaints/file-a-complaint/get-started


    You may also submit a review to BBB regarding your experience as a customer of  Homeserve USA (AKA Home Emergency Insurance Solutions (abbreviation HEIS)Home Serve HomeServe. Please click on the link below:



    I encourage customers, prospects and advertising recipients of Homeserve USA (AKA Home Emergency Insurance Solutions (abbreviation HEIS), Home Serve HomeServe. To submit either a complaint or review, as is appropriate.

    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?