California American Water Hosts Workshops on Revised Rate Design

California American Water Hosts Workshops on Revised Rate Design

Recent California Public Utilities Commission decision changes customers' water rates

PACIFIC GROVE, Calif.--(BUSINESS WIRE)-- California American Water will host two public workshops addressing modifications to the current rates and rate design that were recently approved by the California Public Utilities Commission (CPUC). The rate design changes, which take effect October 21, apply to all California American Water's customers in Monterey County, excluding those in Ambler Park, Toro, Ralph Lane, Garrapata and Chualar.

The workshops will be held Wednesday, September 18 and Tuesday, September 24 at the company business office in Pacific Grove. Customers are invited to visit between the hours of 3:00 p.m. and 6:00 p.m. either day to speak with company representatives about the forthcoming changes to area water bills.

The new rates and rate design (CPUC Decision 13-07-041 in Application 10-07-007) are supported by The Division of Ratepayer Advocates, the Monterey Peninsula Water Management District, the Coalition of Peninsula Businesses and the Independent Reclaimed Water Group. The new design will alter the allocation of costs between customer classes as well as the methodology under which commercial, public authority, industrial, other water utilities, construction and miscellaneous services are billed. As a result, customers' monthly bills will change.

While the authorized changes do not represent a rate increase for California American Water and do not change the company's CPUC authorized revenue, there will be increases in all customer rates to allow for recovery of the current authorized revenue requirement. The new rate design will allow California American Water to recover its costs to maintain and operate its water system during the period approved by the California Public Utilities Commission. The new rates will help prevent overuse of true-up mechanisms, which allow the utility to compensate for revenue shortfalls that can result from increased water conservation.

Some of the key differences in the revised residential rate design include new prices for tiers one through five. A typical single family customer that consumes 74 units a month (a unit is approximately 75 gallons) will see their monthly bill increase from $68.81 today - including surcharges - to $75.74 as a result of the changes.

Key changes for non-residential customers include the elimination of commercial water allotments and the annual "true-up" process while implementing rates based on compliance or non-compliance with Rate Best Management Practices and outdoor watering habits.

To implement the new rate design for its non-residential customers, California American Water needs survey information from more than 3,500 commercial, industrial and public authority customers. To date, less than 700 surveys have been returned. Non-residential customers who do not return surveys will be placed in the highest rate category. The non-residential Rate BMP surveys are due September 25.

"These workshops are also an excellent opportunity for residential customers to learn about the new rates and for non-residential customers to get help filling out their Rate BMP surveys and turn them in," said California American Water Monterey County District Director of Operations Eric Sabolsice.

For a copy of the rate design decision, visit www.californiaamericanwater.com or visit the company's local office at the address listed above. For questions about these meetings contact Luke Gianni at (831) 646-3252 or luke.gianni@amwater.com.

California American Water, a subsidiary of American Water (NYS: AWK) , provides high-quality and reliable water and/or wastewater services to approximately 600,000 people.

Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,700 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 30 states, and parts of Canada. More information can be found by visiting www.amwater.com.

California American Water
Catherine Bowie, 831-646-3208
Mobile: 831-241-2990
catherine.bowie@amwater.com

KEYWORDS: United States North America California

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