All Frequently Asked Questions
Why does Cal Water sometimes flush water from pipes?
At Cal Water, we conduct periodic flushing as part of our ongoing water quality and water system maintenance program. By opening certain fire hydrants under controlled conditions, we remove minerals and sediment that build up in water lines over time. This improves water quality and increases the amount of water that can flow through the water lines.
Although it may seem wasteful to the casual observer, flushing is actually an important and necessary water utility activity that is endorsed by the American Water Works Association and conducted in accordance with guidelines set by the California Division of Drinking Water.
You will continue to receive water while we are flushing, but the pressure might be lowered temporarily. If you notice any discoloration and/or sediment in your water after we have flushed, please allow water to run from your outside hose bib until it clears.
What are trihalomethanes?
Trihalomethanes (chloroform, bromoform, bromodichloromethane, and chlorodibromomethane) are commonly found in drinking water that has been chlorinated or chloraminated. Trihalomethanes (THMs) form when chlorine reacts with organic matter in the water. THMs are found mainly in water that originally came from surface sources, such as rivers and lakes. THM levels are typically low in groundwater (produced by wells). THMs have been associated with increased cancer risk, at least in animals, and the EPA has for many years regulated the amount of THMs allowable in drinking water.
Why is drinking water chlorinated/chloraminated?
Drinking water is often chlorinated or chloraminated to kill microorganisms that could cause serious illnesses. Overall, chlorination of drinking water has benefited public health enormously.
There are other methods of disinfecting public drinking water, but they are often more expensive, and the potential health effects of using these other methods are generally less well understood. Additionally, some alternative disinfectants do not remain effective as the water is transported from the source to the tap through the distribution system.
Is there a regulatory standard for chlorine or chloramine in water?
Drinking water utilities that use chlorination or chloramination are required by law to sample water throughout their distribution system, average the total THM measurements, and report the results to the Division of Drinking Water. The Maximum Contaminant Level (MCL) permissible for total THMs in drinking water by California and federal law is currently an average of 80 parts per billion (ppb) over four consecutive quarters. In other words, a utility has not violated the standard unless the average system-wide level over the past year is more than 80 ppb. There are no standards currently for the individual trihalomethanes.
What are the California Division of Drinking Water and EPA doing to look at the issue of THMs in drinking water?
In 2006, the MCL for THMs and HAAs was revised so that the MCL was met at every location, and not just in the system as a whole.
How are water rates set?
Cal Water’s rates are set by an independent third party, the California Public Utilities Commission (CPUC). The CPUC’s job is to protect customers and make sure that rates are fair and reasonable. Oversight by the CPUC helps determine necessary improvements that are made to the water system, that the system is operated efficiently, and that the company only earns a modest return on the funds it invests in water system infrastructure. Rates are based upon “cost of service,” which means that the majority of every dollar a customer pays to Cal Water is dollar-for-dollar what we pay to operate the system.
Infrastructure Improvement Plan/General Rate Cases
All large water companies regulated by the CPUC are required to file an Infrastructure Improvement Plan, formally known as a General Rate Case, every three years so rates reflect the current cost of service. In the General Rate Case process, the CPUC sets rates to cover the costs of providing water and allow the utility to earn a reasonable return on its investment in the water system. Major costs to operate a water system include purchased electric power, purchased water, treatment costs, groundwater pumping fees, labor, and chemicals.
The six steps in the rate-case process are as follows:
- Cal Water reviews its historical costs, projected costs, and planned water system improvements and prepares a General Rate Case application for the consideration of the CPUC staff.
- The CPUC Division of Ratepayer Advocates (DRA) analyzes Cal Water’s application and makes a recommendation. DRA usually recommends a smaller increase than that requested by the utility.
- The CPUC hosts public hearings to receive input from customers on the application. Customers may also write to the CPUC.
- The CPUC holds a formal hearing, presided over by an Administrative Law Judge (ALJ), which is similar to a court proceeding.
- The ALJ issues a proposed decision.
- The CPUC Commissioners vote on the proposed decision. New rates typically become effective five days later. The entire process can take 18 months or more.
What is WRAM?
The Water Revenue Adjustment Mechanism (WRAM) is a rate-making mechanism adopted by the California Public Utilities Commission that breaks the link between water sales and revenues to encourage conservation. The WRAM works with the Modified Cost Balancing Account (MCBA) to balance out cost savings and revenue under collection.
Each year, Cal Water is allowed to recover a set amount of revenue to cover its fixed and variable operating expenses. When sales go down, Cal Water collects less in revenue, but it also incurs lower variable expenses. The cost savings from the variable expenses is deducted from the authorized revenue level. The difference between the actual revenue collected and the authorized revenue, after taking out the cost savings, is the shortfall in revenue for fixed costs. Cal Water is allowed to implement a surcharge to recover the annual shortfall in revenue. This is what you see on the bill.
With the WRAM, Cal Water instituted tiered rates for metered customers, which do not increase overall revenues to the company, but instead reallocate those revenues so that high-water-using customers pay a higher rate, and low-water-using customers pay a lower rate. The quantity charge is lowest for the first several units of water a customer uses, and the quantity charge goes up in steps as usage increases. These rates are designed to reward water conservation, so the less water a customer uses, the more money he or she saves.
Why did Cal Water implement increasing block rates?
The CPUC supports increasing block rates, also called tiered or conservation rates, because they provide an incentive for customers to conserve water. They do not change the overall amount collected by Cal Water, but high-water-using customers will pay more, and low-water-using customers will pay less.
