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California American Water will host two public workshops addressing modifications to the current rates and rate design that were recently approved by the California Public Utilities Commission (CPUC). The rate design changes, which take effect October 21, apply to all California American Water’s customers in Monterey County, excluding those in Ambler Park, Toro, Ralph Lane, Garrapata and Chualar.
The workshops will be held Wednesday, September 18 and Tuesday, September 24 at the company business office in Pacific Grove. Customers are invited to visit between the hours of 3:00 p.m. and 6:00 p.m. either day to speak with company representatives about the forthcoming changes to area water bills.
The new rates and rate design (CPUC Decision 13-07-041 in Application 10-07-007) are supported by The Division of Ratepayer Advocates, the Monterey Peninsula Water Management District, the Coalition of Peninsula Businesses and the Independent Reclaimed Water Group. The new design will alter the allocation of costs between customer classes as well as the methodology under which commercial, public authority, industrial, other water utilities, construction and miscellaneous services are billed. As a result, customers’ monthly bills will change.
While the authorized changes do not represent a rate increase for California American Water and do not change the company’s CPUC authorized revenue, there will be increases in all customer rates to allow for recovery of the current authorized revenue requirement. The new rate design will allow California American Water to recover its costs to maintain and operate its water system during the period approved by the California Public Utilities Commission. The new rates will help prevent overuse of true-up mechanisms, which allow the utility to compensate for revenue shortfalls that can result from increased water conservation.
Some of the key differences in the revised residential rate design include new prices for tiers one through five. A typical single family customer that consumes 74 units a month (a unit is approximately 75 gallons) will see their monthly bill increase from $68.81 today – including surcharges – to $75.74 as a result of the changes.