LUCERNE, Calif. – A decision this week by the California Public Utilities Commission will offer rate cuts and a new tiered rate system for customers of California Water Service in Lucerne.
On Thursday, the CPUC issued its decision on Cal Water's required, triennial review of its operations, expenses, rates and needed water system improvements.
In its decision, the commission authorizes Cal Water to invest $1.5 million in infrastructure improvements over the next three years.
The decision enables Cal Water to make water system improvements necessary to continue providing safe and reliable water service to its customers, according to Local Manager Darin McCosker.
Among the improvements Cal Water will be able to make are $1.2 million to replace 4,480 feet of aging and high-risk water main, and $198,000 to replace aging treatment filters to maintain high-quality water in the system.
For the typical residential customer using 3,740 gallons, or 5 CCF, of water per month, the monthly water bill will decrease by $27.37 in 2017 (91 cents per day), and then increase by $1.15 (4 cents per day) in 2018 and by $1.09 (4 cents per day) in 2019.
New water rates go into effect Jan. 1, 2017.
Additionally, the CPUC allowed Cal Water to combine the rates of the Redwood Valley District – which includes Lucerne – with the Bayshore District to form the Bay Area Region.
The regional cost-sharing, which is encouraged by the State Legislature and commission, spreads infrastructure improvements and other costs among a larger base of customers and is helping to significantly reduce bills for each customer in the Redwood Valley District.
As such, Redwood Valley will be implementing tiered water rates in February 2017, which means that customers who use less water will pay a lower rate.
Company officials said the districts will continue to operate independently.
“We work hard to operate efficiently, and we are very pleased that we will be able to continue upgrading the water system while decreasing our customers’ bills,” McCosker said. “Protecting our customers’ health and safety is our highest priority, and our commitment is to do so at the lowest cost possible, even as costs for materials and services are rising across the country. This is part of our promise to our customers to provide excellent quality, service and value.”
The commission’s decision comes after an 18-month review process in which Cal Water’s operations and books are thoroughly audited.
It adopts the proposed decision issued in November 2016 by an administrative law judge and settlement achieved in September 2016 among Cal Water, the commission’s Office of Ratepayer Advocates, and other parties to the case.
Water utilities regulated by the commission, an independent state agency, are required to file such a rate review application every three years to ensure that water rates accurately reflect the costs to provide service. The next required review of rates will be filed in July 2018.
Cal Water customers will receive more details about approved water system improvements and the rate changes in their January 2017 bills.
Separately, the CPUC approved a resolution authorizing Cal Water to recover drought expenses incurred from 2014 to 2015 through a 12-month surcharge of $0.0208 per CCF on customers’ bills in the Redwood Valley District.
Cal Water serves approximately 1,900 service connections in the Redwood Valley area and about 2 million people through 480,300 service connections in California.
CPUC sets Cal Water's new rates; Lucerne residents to see rate cuts
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