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April 26, 2007
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Hearing on water rate increases attracts just a trickle of attention
By Nancy Needham  nancy@theacorn.com

PEOPLE DROUGHT?--The library community room held less than an overflow crowd during a public participation hearing conducted by the California Utilities Commission on California American Water's application requesting rate increases for Thousand Oaks.
Only six residents showed up to hear about the rate increases proposed by California American Water, the city's water company.

The Thousand Oaks Library community room was prepared with seating for 85 last Thursday. The meeting began at 6:10 p.m. as the six took seats in the back.

Administrative Law Judge Linda Rochester presided over the California Public Utilities Commission hearing.

Darlene Clark, a water company representative, made a presentation to show the proposed rate will increase 7.13 percent in 2008 and close to
1 percent in 2009 and again in 2010.

For an average customer, someone who uses 22 Ccf, that would mean a bill in 2007 of $56.14 would be $60.14 in 2008, $60.73 in 2009 and $61.33 in 2010.

A Ccf equals 748 gallons, or 100 cubic feet, of water.

"A tiered rate program is also proposed to promote water conservation," Clark said.

That means customers who use less water will pay less for their water per Ccf. Of course, that also means customers who use more water will pay more for each Ccf as they reach higher levels of use.

Clark also said there would be a discount on water used by low-income customers, which would probably be paid for by other customers.

Resident Joyce Alessandrino, who has about 50,000 square feet of land surrounding her home, said she has planted drought-resistant plants and done everything she knows to her landscape to conserve water. Still, she's worried what a rate increase will do to her single-mom, one-paycheck family budget, she said.

"I'm afraid of where I'm going to fall in the tier," she said. "A rate increase is going to have a pretty big impact on me financially."

Gordon Thomas was also concerned about the impact of the proposed rate increase. He lives in a condominium where most residents spend about $20 a month on their personal water use, but the homeowners association spends about $100,000 a year watering the surrounding landscape. He said he was concerned about the homeowners association's future water bills and how it would ultimately affect the residents.

Water company representatives said they couldn't respond to his concerns during the public hearing and would get back to him.

Deputy Public Works director Jay Spurgin was among those who spoke to California American Water on behalf of the 20,000 customers who are Thousand Oaks residents. The city is also a customer of California American Water and pays them about $500,000 a year, he said.

He asked that the proposed rate increase be more evenly spread over the three years. He also asked the water company to prepare for the inevitable complaints that will come when--if the increase is allowed--residents get their higher bills. He suggested they offer customers no-cost water inspections to help them learn how they can lower their water usage by changing things such as landscaping and fixtures.

Spurgin also expressed concern about the possibility that the company's low-income discount would be made on the backs of their other customers.

A copy of the company's application may be seen at the California American Water office, 2439 W. Hillcrest Drive, Newbury Park.

For more information, call (888) 237-1333 or go online to www.calamwater.com.

Information on the rate increase proposal can also be found on www.dra.ca.gov.