|By Marketwired .||
|July 8, 2014 07:04 PM EDT||
SAN JOSE, CA -- (Marketwired) -- 07/08/14 -- The California State Auditor today released its final report on California Water Service Company's (Cal Water) rates and operations in its Antelope Valley District. The audit, titled "Antelope Valley Water Rates: Various Factors Contribute to Differences Among Water Utilities" and approved by the Joint Legislative Audit Committee in August 2013, compared Cal Water's rates and operations with three local municipal utilities, Los Angeles County Waterworks District No. 40, Palmdale Water District, and Quartz Hill Water District.
In its report, the state auditor found that Cal Water complied with all state rules requiring that rates be justified and warranted through the thorough process managed by the California Public Utilities Commission (commission). According to the audit, unlike municipal utilities, investor-owned "utilities such as Cal Water... must justify their proposed rates by presenting cost information to the commission during general rate case proceedings, which take place every three years. The commission... has broad authority over investor utilities, including the authority to inspect and audit their records at any time. A general rate case proceeding is intended to provide the commission, the Office of Ratepayer Advocates, advocacy groups, and the public the opportunity to determine whether the costs than an investor utility proposes to recover in its rates are necessary, reasonable, and fair."
The report concluded that the "water rates Cal Water charged between 2011 and 2013 were approved by the commission" and were properly implemented through the general rate case process.
In the analysis, the auditor found that rates for all four utilities had risen over the three-year period, and that Cal Water's costs were explainable. "Other factors specific to each water utility can also contribute to variations in their costs, including the sources of water and energy costs to pump water."
The audit reported that rates between Cal Water and the municipal utilities differed for several reasons, one of which is that municipal utilities, unlike Cal Water, have other sources of revenue that allow them to keep water rates lower. Investor-owned utilities such as Cal Water, however, pay fees and taxes that benefit the cities and counties in which they operate.
Municipal utilities "receive revenues from monthly water rates and from additional sources, primarily taxes based on the assessed value of properties in their service area. These additional revenue sources help... cover their costs and, therefore, can contribute to lower monthly water rates for their customers... Investor utilities also must pay property and franchise taxes and business license fees," the report noted.
The size of Cal Water's service area also contributes to the difference in rates, as confirmed by the report. Cal Water's Antelope Valley District serves 1,400 customer connections in its Fremont Valley, Lake Hughes, Lancaster, and Leona Valley systems; it is the smallest utility of the four analyzed. "Service areas with a dense population of service connections allow water utilities to disperse their fixed costs over a larger number of water customers, resulting in lower overall monthly bills, whereas service areas with fewer service connections result in higher monthly bills because the water utilities must spread their fixed costs across fewer water customers," according to the report.
However, to help reduce the cost impact to customers in the Antelope Valley, "Cal Water is authorized by the commission to offer rate assistance programs and currently offers two different types of assistance to certain demographics of valley water customers... The public utilities we visited do not currently offer rate assistance, nor are they required to."
"Our priority is to provide our customers with reliable, high-quality, and affordable water service," said Martin A. Kropelnicki, Cal Water President and Chief Executive Officer. "In maintaining reliable water infrastructure and ensuring that we always meet or exceed all state and federal water quality standards, we are constantly also working to operate as efficiently as possible to minimize the cost impacts to our customers."
Included in the efforts Cal Water has undertaken to reduce costs to customers are pumping of more groundwater to reduce the amount of higher-cost imported water the company can purchase, and utilizing every employee in the company to work on teams to find areas in which operating efficiency can be improved or costs can be reduced. Cal Water has also committed to keeping the State Auditor's Office and customers informed of future efforts to reduce costs and the impact to customers.
"We are pleased to have had the opportunity to work with the California State Auditor's office as its team analyzed our rates and operations, and we support not only Assemblyman Fox's interest in the cost of water utility service in the Antelope Valley but also our customers' interests and concerns," Kropelnicki said. "We are committed to being a good partner by operating transparently and always providing excellent service to our customers."
California Water Service Company is the largest subsidiary of California Water Service Group, which also includes Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, Inc., CWS Utility Services, and HWS Utility Services. Together these companies provide regulated and non-regulated water service to approximately 2 million people in more than 100 California, Washington, New Mexico, and Hawaii communities. Group's common stock trades on the New York Stock Exchange under the symbol "CWT." Additional information is available at online at www.calwatergroup.com.
1720 North First Street
San Jose, CA 95112-4598
Oct. 6, 2015 11:15 AM EDT Reads: 264
As-a-service models offer huge opportunities, but also complicate security. It may seem that the easiest way to migrate to a new architectural model is to let others, experts in their field, do the work. This has given rise to many as-a-service models throughout the industry and across the entire technology stack, from software to infrastructure. While this has unlocked huge opportunities to accelerate the deployment of new capabilities or increase economic efficiencies within an organization, i...
Oct. 6, 2015 11:14 AM EDT
Oct. 6, 2015 11:00 AM EDT Reads: 198
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
Oct. 6, 2015 11:00 AM EDT Reads: 210
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Oct. 6, 2015 11:00 AM EDT Reads: 843
Learn how Backup as a Service can help your customer base protect their data. In his session at 17th Cloud Expo, Stefaan Vervaet, Director of Strategic Alliances at HGST, will discuss the challenges of data protection in an era of exploding storage requirements, show you the benefits of a backup service for your cloud customers, and explain how the HGST Active Archive and CommVault are already enabling this service today with customer examples.
Oct. 6, 2015 11:00 AM EDT Reads: 675
SYS-CON Events announced today that Key Information Systems, Inc. (KeyInfo), a leading cloud and infrastructure provider offering integrated solutions to enterprises, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Key Information Systems is a leading regional systems integrator with world-class compute, storage and networking solutions and professional services for the most advanced softwa...
Oct. 6, 2015 11:00 AM EDT Reads: 314
Oct. 6, 2015 11:00 AM EDT Reads: 168
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, ...
Oct. 6, 2015 10:45 AM EDT Reads: 438
Clutch is now a Docker Authorized Consulting Partner, having completed Docker's certification course on the "Docker Accelerator for CI Engagements." More info about Clutch's success implementing Docker can be found here. Docker is an open platform for developers and system administrators to build, ship and run distributed applications. With Docker, IT organizations shrink application delivery from months to minutes, frictionlessly move workloads between data centers and the cloud and achieve 2...
Oct. 6, 2015 10:45 AM EDT Reads: 445
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text...
Oct. 6, 2015 10:45 AM EDT Reads: 162
Oct. 6, 2015 10:34 AM EDT
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
Oct. 6, 2015 10:00 AM EDT Reads: 731
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT ...
Oct. 6, 2015 10:00 AM EDT Reads: 261
Oct. 6, 2015 10:00 AM EDT Reads: 4,417