www.montereycountynow.com September 26-october 2, 2024 MONTEREY COUNTY WEEKLY 13 Proceeding number A2207001 before the California Public Utilities Commission began on July 1, 2022 when California American Water filed an application to increase revenues from ratepayers. The utility company pitched a tiered plan: A $55.8 million increase in 2024 (18.7 percent), followed by $19.6 million in 2025 (5.5 percent), then $19.9 million (5.3 percent) in 2026. “California American Water’s main focus is our customers,” the application reads. It went on to note cost pressures: capital investment, labor costs, inflation and anticipated decrease in water sales as customers increasingly emphasize conservation. That last part poses a fundamental problem to utility companies: They make money by selling a product (in this case, water) and it’s a product we are encouraged to use less of. That’s where utilities rely on what are known as decoupling mechanisms, formulas that enable the company to bill customers with a surcharge. The idea is that if actual water sales fall short of projected revenue, a utility company can still collect the difference to reach its target. This has long been the way Cal Am has sold water. But in a proposed decision released on Aug. 27 by Administrative Law Judge Jacob Rambo, it’s time for it to come to an end. “A forecast is just that, a forecast, a reasonable prediction,” Rambo wrote. “It is not a guarantee. As with all investments, Cal Am’s equity investors assume some risk.” Rambo’s proposed decision will be taken up by the CPUC, as early as Oct. 17 for a vote. Commissioners may choose to adopt his 64-page proposal, or something different. And Cal Am is advocating for something different. Since Rambo’s decision was released, representatives of Cal Am, National Association of Water Companies and California Water Association have logged 11 one-on-one meetings with commissioners or their representatives about the proposed end of the decoupling mechanism. In a brief filed earlier this year in defense of decoupling, Cal Am wrote: “California’s water supply is increasingly at risk as it confronts more frequent and extreme droughts and floods, rising temperatures, aging infrastructure and other challenges made more acute by climate change. This is not a time for half-measures.” Decoupling is the major sticking point, but on most issues, Cal Am and the Public Advocates Office reached a settlement, and Rambo proposed the commissioners adopt it. Their agreement calls for lower revenue than what Cal Am initially pitched in its 2022 application: A $20 million increase (6.4 percent) in 2024, $15.5 million (4.7 percent) in 2025, and $15.4 million (4.4 percent) in 2026. In total, that is $44.3 million less than originally sought over three years. Melodie Chrislock, managing director of Public Water Now, is organizing ratepayers to post comments on the CPUC website urging commissioners to adopt Rambo’s proposed decision. “We need hundreds of comments to offset Cal Am’s lobbyists,” she says. “The cost of water right now is a major issue.” Pay Scale A proposed three-year rate schedule for Cal Am leads to a battle over how utilities can bill for water. By Sara Rubin Melodie Chrislock of Public Water Now says fighting to keep water rates low is her primary focus right now while other big projects, like a public buyout of Cal Am, are in court. NEWS “A forecast is just that, a forecast.” DANIEL DREIFUSS CITY OF MARINA REMINDS YOU TO… PROTECT OUR WATER AND WILDLIFE RECYCLE AND PICK UP LITTER! Artwork by Los Arboles Middle School Student “I brought my Subaru to Hartzel on advice of a friend and I was so pleased with the service & attention I got from them. Not only finished on time, but under the estimate I was given. Very rare these days. So pleased with the whole experience & great peace of mind knowing it was done correctly. Highly recommend this guy.” —David F., Seaside 2/14/19 510 California Avenue | Sand City | 394.6002 hartzelautomotive.com EXPERT SERVICE WHEN YOU NEED IT. Subaru Mazda Lexus Infiniti Saab vintage MG SCHEDULE YOUR NEXT SERVICE ONLINE TODAY
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