Application to Decrease Redwood Valley Customer Bills

Application Reflects Regulated Utility’s True Cost of Service

Cal Water filed an application with the California Public Utilities Commission (CPUC) today that will result in bill decreases for the utility’s Redwood Valley District customers. The filing implements various ratemaking mechanisms that ensure customer bills continue to reflect the true cost to provide water service.

For the typical residential Coast Springs system customer who uses 1,496 gallons, or 2 Ccf, of water per month, the monthly bill will decrease by $11.04. The typical residential customer in the Rancho Del Paradiso system who uses 3,740 gallons, or 5 Ccf, of water per month will see a bill decrease of $13.56. Remaining Unified system customers also using 3,740 gallons per month will see a monthly decrease of $0.62. Redwood Valley District customers who are billed for water service every two months would see double the decrease on the bimonthly bill.

Included in the application is a 12-month credit to reflect lower capital financing costs and changes in the federal tax law from Jan. 1-June 30, 2018. In July 2018, Cal Water reduced customer rates going forward due to these changes; the utility also tracked their effect in order to enable customer savings to go back to the first half of 2018.

Additionally, Coast Springs customers will receive a 12-month credit to reconcile the difference between actual and forecasted water system costs in 2017 and 2018, due to variations in water consumption and water supply costs. And, Rancho Del Paradiso customers have a low-interest loan for capital improvements made that has now been paid off; the credit for this system reflects both elimination of the loan surcharge and excess funds being returned to customers.

The filing also includes a surcharge to reconcile the difference between actual and forecasted water system costs in 2017 and 2018 in the Rancho Del Paradiso and other Unified systems, due to variations in water consumption and water supply costs, along with a surcharge for expenses incurred in 2016 and 2017 for programs implemented to support customers’ efforts to meet state-mandated water-use reduction requirements. The surcharges, both running for 12 months, are less than the credit, however, resulting in lower water bills.

“At Cal Water, we are committed to providing a reliable supply of safe, high-quality water to our Redwood Valley communities,” said Evan Markey, District Manager. “As a regulated utility, our customers’ bills reflect the true cost of providing water service, and we’re pleased to pass along these savings to our valued customers. It’s part of our promise to always provide quality, service, and value.”