OPINION: Claremont Residents' Scrutinize Water Company's Rates

While Claremont and Golden State Water Company officials verbally battle over the company's water rates and the city's attempts to take over the water delivery system, some of the locals are working to be heard.

Below is a letter to the editor submitted by Claremonters Against Outrageous Water Rates.

For over a year we have heard about Golden State Water Company (GSWC) and the high rates they charge for water in Claremont.  In 2011, this for-profit water company applied to the California Public Utilities Commission (PUC) for a rate increase, seeking a 25.54% more from Claremont ratepayers, for 2013 and beyond.

In GSWC’s 2011 rate request application, the water company stated that reduced water usage was a primary reason for the rate increase.  GSWC has figured out a way to increase our water bill, when we actually use less water.  On top of that, we see that the parent company (AWR) posted 2012, 3^rd Quarter profits of $15.1 Million.  Not once in this recession have they cut back expenses, posted a loss or shown any sign of an economic slowdown.  Indeed, they have increased staff 31%, posted record results (increasing operating income by 55% in four years) all with a 21% decrease in the amount of water delivered.  They delivered less water and made more money doing it.   

The CA PUC has a Division of Ratepayer Advocates (DRA).  The DRA has 137 state employees who are charged with obtaining the “lowest possible rate for service consistent with reliable and safe service levels.”  Just last week the DRA released their 2012 Annual Report.  The report touted that they saved the average customer $6 a month over what water companies were proposing to charge ratepayers.  Really DRA?  You pat yourself on the back for saving ratepayers six dollars monthly, when the water bills in Claremont have virtually doubled since May 2011, when GSWC billing went from a 2 month to a 1 month bill.   

In August 2012, we were told that the DRA negotiated a proposed Settlement Agreement with GSWC, whereby Claremont ratepayers would ONLY, and I use the word only to highlight the absurdity - see 15.1 percent increase in 2013. All we have been looking for in this David vs. Goliath fight is a fair and reasonable price for water.  Look at our surrounding cities and see they are paying half, or even less, for their water.  On average, our water rates have increased 11% per year for the last seven years.  Who is looking out for the Claremont ratepayer?

The DRA’s Annual Report goes on to explain how they forced one for-profit company to except a rate of return of 9.99% versus 10.02%.  No one in Claremont should be tricked into thinking that a fair settlement was reached was reach with the CA PUC - because, it wasn’t.  Until we have local control of the water company/provider, we are forced to rely on 137 DRA employees.  To date, the DRA has failed ratepayers, earning them a letter grade of “F”.   The DRA failures are something that should have been included in their Annual Report. The report can be viewed at www.dra.ca.gov

Hal Hargrave & Randy Scott

Claremonters Against Outrageous Water Rates

claremontoutrage@gmail.com