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California American Water Updates Customer Rate Impact Estimates For Proposed Monterey Peninsula Water Supply Project

California American Water, in an ongoing effort to keep the community informed, has updated its estimate of bill impacts for customers on the Monterey Peninsula. As a result of the proposed Monterey Peninsula Water Supply Project and all other rate changes proposed between now and 2018, a typical customer should expect an approximate 40-percent increase in their bill between 2013 and the end of 2018.

The estimates incorporate a major settlement that was reached on the Monterey Peninsula Water Supply Project application, which is currently pending before the California Public Utilities Commission. Among the various issues settled in the agreement was a public funding contribution that could reduce the overall cost of the project.

“The settlement agreement, along with implementation of our San Clemente Dam decision and the recent rate filing, allowed us to update our numbers,” said Dave Stephenson, director of rates and revenue for California American Water. “With the settlement in place, including the planned public contribution, we have revised our customer bill-impact estimates. This 40-percent increase will be phased in over five years.”

This equates to a monthly bill increase from about $75 to about $106 or about an additional dollar per day. This is based on a typical customer who uses 74 units of water per month (10 cubic feet per unit, or about 5,600 gallons per month). Customers with different water consumption levels will be affected differently.

“Our goal in updating these estimates was to give customers a realistic idea of how their bills will change with the Monterey Peninsula Water Supply Project and all other infrastructure investments and system operating costs between now and 2018,” Stephenson said.

California American Water conducted an analysis of how infrastructure investment over the next five years, including those anticipated in the settlement agreement, will impact the typical customer. The methodology assumes CPUC approval of California American Water’s full request to fund infrastructure improvements and expenses for 2015, 2016 and 2017. The following monthly bill estimate is what a typical customer can expect to pay between now and the end of 2018.

                                                             

2013

          2014           2015           2016           2017           2018
$75.74           $79.86           $88.42           $97.27           $97.38           $106.73
                                                 

More detail on how these numbers were developed and a detailed explanation of the various surcharges and their effective dates can be found at www.californiaamwater.com or at www.watersupplyproject.org.

These numbers are provided as estimates based on current conditions and are subject to change based on actual costs and other factors. California American Water is committed to keeping customers informed of all major project updates, including rate impacts. Customers interested in following the development of this project are encouraged to visit its website, www.watersupplyproject.org where customers can review the latest information and sign up for email updates.

California American Water customers interested in reducing their bills and their water use can contact the conservation department at (831) 646-3205. Customers interested in learning more about discounts available to qualifying low-income customers can call (888) 237-1333. At this time, more than 3,400 local customers receive discounts on their service by participating in the low-income assistance program.

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