Welcome!

News Feed Item

California State Audit Confirms California Water Service Company Rates Justified, Reasonable

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

Contact:
Shannon Dean
(310) 257-1435

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...