1. Monterey Wastewater
Rate Application

2. Setting Your Rates: A 20 month process
WW Schedule:
Initial proposal filed November 30, 2007
Final Application filed January 30, 2008
Public hearings in Monterey May 28 & 29, 2008
DRA Report on their findings and review August 2008
Evidentiary hearings October 2008
Proposed Decision by Administrative Law Judge April 2009
Final Decision by CPUC Commissioners in June 2009
Final rates effective July 2009
*DRA= Division of Ratepayer Advocates, an independent entity of the CPUC

3. Filings for a Sustainable System
Current GRC + General Office January 30, 2008
For rates in
Rate of Return May, 2008
Next GRC + General Office May, 2010
For rates in
San Clemente Dam Total Cost Recovery Future
Coastal Water Project EIR & CPCN On-going review
CWP Total Cost Recovery Future
Monterey Customers currently pay for Coastal Water Project preconstruction costs through a surcharge on the bill

4. History
In 2003, California American Water acquired Las Palmas Ranch, Laguna Seca Ranch and Village Greens, White Oaks, Carmel Valley Ranch from Monterey County through competitive bid process
In 2004, California American Water acquired Spreckles, Oaks Hills and Indian Springs from Watertek Systems
First General Rate Increase proposed for systems since the acquisitions

5. Map of Wastewater Service Area

6. Customer Service Area Las Palmas Ranch - 1,041 customers
Laguna Seca Ranch – 219 customers
Village Greens – 22 customers
White Oaks – 38 customers
Carmel Valley Ranch customers
Indian Springs customers
Oak Hills customers
Spreckels customers
TOTAL Wastewater Customers = 2,428

7. Wastewater Systems At-A-Glance
Regulated by California Public Utilities Commission and State Water Resources Control Board
2,428 customers in 8 systems
98.2% residential customers
Customers are billed flat rate
230,000 feet of sewer mains
926 manholes
Systems are geographically diverse – miles apart
Treat 462,000 gallons per day of sewage
Various sophisticated treatment technology utilized
All sewage effluent water land applied except White Oaks and Village Green
8 full-time employees
Propose to add 2 full time employees in this rate case

8. Proposed Revenue Increase 108% overall increase from 2008, due to compounding
Year
Percent Increase
$ Proposed Revenue
2009
83.47%
$1,387,600
2010
6.32%
$195,400
2011
6.40%
$212,800
Customers have different % increase (87% - 196%)
depending on system location

9. Major Drivers of the Increase
Propose to have same rates for all sewer customers regardless of system
Rates kept artificially too low during acquisition phase of the systems (5 years)
Proposed rates in represent actual costs to operate wastewater systems
Investing over $4 million for needed capital improvements
Propose adding 2 additional employees

10. Proposed Monthly Rates
Area
Current
2009
2010
2011
% Increase
Las Palmas
$56.57
$94.00
$99.94
$106.25
87%
Laguna Seca Ranch
Village Greens
White Oaks
Carmel Valley Ranch
Indian Springs
$49.21
116%
Oak Hills
$39.93
166%
Spreckels
$35.93
196%

11. Contacting the Commission
California Public Utilities Commission
Public Advisor’s Office
505 Van Ness Avenue
San Francisco, California 94102
(toll-free)
(415)
Case Numbers: A ; A
May 29 - CPUC Public Participation Hearing – 2pm & 6pm
Monterey City Hall, Pacific & Madison, Monterey
Application available for download at: