The price of water may be going up
By Chelsea Ma Special to the Thousand Oaks Acorn

California American Water, the drinking water provider for parts of T.O. and Newbury Park, filed for a general rate case last Wednesday that would increase residents' monthly water bills beginning in 2008.

The rate hike would be implemented primarily to cover the costs necessary to meet the goals of the California Public Utilities Commission.

"We're trying to comply with the objectives of the CPUC water action plan," said Gary Valladao, network general manager for Southern California.

The extra revenue generated from the increases would go toward water conservation programs offered jointly with Calleguas Municipal Water District, Cal Am's supplier.

According to Valladao, the company is hoping to provide low flow toilets and washing machines, a weather-based irrigation control system and educational programs. About $3 million will be spent on major projects such as tank and reservoir renovations.

Cal Am plans to improve its service, allowing customers to reach qualified representatives 24 hours a day, seven days a week.

More assistance will also be given to lowincome residents, who may see their monthly bills drop by about 15 percent.

Cal Am's new rate system would feature three tiers, for low, medium and high consumption. The majority of the funding for programs and service improvements will come from the third tier--those who use the most water.

"Most customers will see bills remain about the same or experience a modest increase," Valladao said. "Low water users may see their bills go down, but high water users will see their bills increase, due to third tier pricing."

The current charge per unit of water (748 gallons) is $2.14. The proposed rate would be $2.05 for the first six units per month, $2.56 for the next 34 units per month, and $3.07 for any additional units. As a result, Cal Am expects to see an 8.11 percent increase in revenue in 2008.

The proposed rate calculations remain tentative. A long process of public input, hearings, discussions and reviews must be completed before the rates can be approved. A final decision is expected at the end of next year.

Chelsea Ma is a senior at Westlake High School. She's completing an internship for the Acorn Newspapers.