The group of peninsula mayors charged with finding a solution to the water supply shortage -- officially known as the Monterey Peninsula Regional Water Authority (MPRWA)-- voted last week to oppose the public ownership initiative.
The group had received numerous requests from the public to take a stand on the issue, and were scheduled to consider commissioning a consulting firm to investigate whether it was in their purview to take a stand, what the effects would be, etc. But the mayors, to their great credit, said "the heck with that. We've been involved with the issue for years and know more about it than anybody, why pay a consulting firm to study it?" And with that, they took a stand. They're drafting a statement against Measure O (as the public water initiative will appear on the ballot). Who's heard of a bunch of politicians NOT commissioning a study -- hooray for them on that point, anyway.
As much as I don't see why we the ratepayers should pay for a facility that Cal-Am will own, I do see where the mayors are coming from. They're concerned that Measure O will slow down whatever progress is being made on getting a desalination plant built. The deadline for finding an alternative water supply is December 31, 2016, and everyone knows that even if everything goes swimmingly from here on out, there's no way a plant can be built and operational by that date. All the key players are counting on the State Water Resources Control Board granting an extension on the order to reduce pumping from the Carmel River by 70% by the start of 2017. If we can show we're well on the way to getting a plant built, maybe they'll give us a little more time. If we still messing about, arguing about the proposals and conducting studies, with no clear plan for who is going to run the plant, the SWRCB is less likely to give us a break.
The idea behind the Public Water Initiative is to conduct a feasibility study to see if a public entity such as the Monterey Peninsula Water Management District (MPWMD) should purchase Cal-Am's assets and infrastructure within the district, and if it is feasible, to use the power of eminent domain to buy out Cal-Am. There's a whole lot of details that would have to be worked out to make that happen, and maybe now is not the time. Why can't we just get the thing built first, and then seize it? I haven't made up my mind how I'm going to vote yet, but the mayors have definitely delivered the first blow.
For more information,http://www.montereyherald.com/news/ci_25348099/peninsula-water-authority-oppose-public-water-initiative.
Wednesday, March 26, 2014
Tuesday, March 25, 2014
So how do the water rates get set?
So how do water rates get set anyway?
Oooh, oooh, I know this one.
Cal-Am files a rate schedule with the California Public Utilities Commission (CPUC) every three years. The filing includes all districts served by Cal-Am in California. CPUC holds hearings, solicits public comments, etc. It can take several years to work through the process.
If the current rate schedule expires before the new one is approved, Cal-Am applies to continue charging the existing rates (which were approved three years ago). When the new (presumably higher) rates are finally approved, Cal-Am is then allowed to apply a surcharge to make up the difference.
About the water bill...
Wow, I can't believe it.
I actually understand everything on the water bill from Cal-Am. It only took me a couple of weeks, and some fun time on the phone with Cal-Am Customer Service, but I've got it.
I've read estimates that the surcharges to be added while the desalination plant gets built could increase the water bills by up to 60%. This is on top of what we're already paying for past failures and messes. So to understand exactly what it is we're already paying for, I went through the entire water bill line-by-line, compared it to the posted rate schedules, pored over related CPUC decisions, and pestered some poor young man at Cal-Am Customer Service who had the misfortune to answer my call (it's not his fault, he was very nice, but Cal-Am doesn't train staff to answer these questions). Now know what all the numbers are and how they got there. I'm a bit fuzzy on the rationales for some of them--the real reason for them is sometimes a bit obscured by the way they're listed on the rate schedule--but I've got the jist of it.
For example, let's say Cal-Am wants to do some test project. They apply to the CPUC for permission to do it, and the track the costs in a "memorandum account". CPUC issues a ruling that includes authorization to create a memorandum account and report back later. Let's then say everything goes well, the project will proceed, and Cal-Am now wants to recover the money they're spent so far from ratepayers. CPUC gives them permission (of course) to move the total from the memorandum account to a "general account" or "balancing account" and add a surcharge to the water bills. So on the rate schedule, it shows up as some mumbo-jumbo thing like the memorandum account balancing surcharge authorized by decision D00-00-00. So unless you go and read decision D00-00-00, you still don't know what it is. And even if you do read the decision, it probably includes multiple issues, and references previous decisions and other documents that aren't available online. Getting to the bottom of it can be an exercise in futility.
I've added a new tab to this site -- Water Rates. On the Water Rates page I've attempted to explain all of the charges and fees that appear on the Cal-Am water bill in Monterey County. I used my own water bill as a reference, so some of the information is specific to city of Monterey residents. But if you're crazy enough to try to decipher your own bill, hopefully this information will help.
While I was at it, I also added some information about another water expense we're paying -- the Water Supply Charge that is added to property tax bills.
Have fun.
I've read estimates that the surcharges to be added while the desalination plant gets built could increase the water bills by up to 60%. This is on top of what we're already paying for past failures and messes. So to understand exactly what it is we're already paying for, I went through the entire water bill line-by-line, compared it to the posted rate schedules, pored over related CPUC decisions, and pestered some poor young man at Cal-Am Customer Service who had the misfortune to answer my call (it's not his fault, he was very nice, but Cal-Am doesn't train staff to answer these questions). Now know what all the numbers are and how they got there. I'm a bit fuzzy on the rationales for some of them--the real reason for them is sometimes a bit obscured by the way they're listed on the rate schedule--but I've got the jist of it.
For example, let's say Cal-Am wants to do some test project. They apply to the CPUC for permission to do it, and the track the costs in a "memorandum account". CPUC issues a ruling that includes authorization to create a memorandum account and report back later. Let's then say everything goes well, the project will proceed, and Cal-Am now wants to recover the money they're spent so far from ratepayers. CPUC gives them permission (of course) to move the total from the memorandum account to a "general account" or "balancing account" and add a surcharge to the water bills. So on the rate schedule, it shows up as some mumbo-jumbo thing like the memorandum account balancing surcharge authorized by decision D00-00-00. So unless you go and read decision D00-00-00, you still don't know what it is. And even if you do read the decision, it probably includes multiple issues, and references previous decisions and other documents that aren't available online. Getting to the bottom of it can be an exercise in futility.
I've added a new tab to this site -- Water Rates. On the Water Rates page I've attempted to explain all of the charges and fees that appear on the Cal-Am water bill in Monterey County. I used my own water bill as a reference, so some of the information is specific to city of Monterey residents. But if you're crazy enough to try to decipher your own bill, hopefully this information will help.
While I was at it, I also added some information about another water expense we're paying -- the Water Supply Charge that is added to property tax bills.
Have fun.
Friday, March 21, 2014
What is the ORA?
I keep running across references to the ORA/DRA, which stands for Office of Ratepayer Advocates (formerly Division of Ratepayer Advocates). Spokespersons from ORA are frequently quoted in news stories about water issues, and they seem to get involved in various legal proceedings in front of the California Public Utilities Commission (CPUC). Who are these people?
Turns out, ORA is an agency within an agency. ORA is mandated under state law, and is described as an independent entity within the CPUC advocating on behalf of utility ratepayers. In other words, the ORA is charged with protecting the interests of ratepayers vs. utility companies like Cal-Am. You read that right...ORA exists within the CPUC to advocate for consumers. Isn't that what the CPUC does? According to its website, the CPUC's mission is to "serve the public interest by protecting consumers and ensuring the provision of safe, reliable utility service and infrastructure at reasonable rates."
So if a utility company, let's say, Cal-Am, wants to add a surcharge to water bills to pay for some project, it must apply to the CPUC for permission. The ORA then (usually) takes the other side, and argues against the increase. But it's part of the CPUC, so it's kind of arguing to itself. I guess the point is that the utility comes in with all of its reasons why it needs the increase, and somebody has to say why the increase is unreasonable. Seems like a strange system.
Turns out, ORA is an agency within an agency. ORA is mandated under state law, and is described as an independent entity within the CPUC advocating on behalf of utility ratepayers. In other words, the ORA is charged with protecting the interests of ratepayers vs. utility companies like Cal-Am. You read that right...ORA exists within the CPUC to advocate for consumers. Isn't that what the CPUC does? According to its website, the CPUC's mission is to "serve the public interest by protecting consumers and ensuring the provision of safe, reliable utility service and infrastructure at reasonable rates."
So if a utility company, let's say, Cal-Am, wants to add a surcharge to water bills to pay for some project, it must apply to the CPUC for permission. The ORA then (usually) takes the other side, and argues against the increase. But it's part of the CPUC, so it's kind of arguing to itself. I guess the point is that the utility comes in with all of its reasons why it needs the increase, and somebody has to say why the increase is unreasonable. Seems like a strange system.
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