OJAI : Panel Backs Water Rate Increase of 44%

The state Public Utilities Commission staff has recommended Southern California Water Company be allowed to raise average residential water bills in Ojai by 44% over the next three years under a newly proposed rate structure tailored to encourage water conservation.

Ojai City Manager Andrew Belknap said the city has no position on the proposed rate increase because he has not received details that were requested three weeks ago from the water company. He said the city remains strongly opposed to the company’s initial proposal to raise water bills an average of 41% over three years without inducements to save water.

The commission is scheduled to begin final hearings on the two rate hike requests this morning at the State Office Building in Los Angeles. A decision on approving one of the two proposed rate increases is expected in October.

Southern California Water Company said it prefers its initial plan, which would raise the average monthly residential bill of $31.86 by $6.15 next year, another $3.71 in 1992 and by an additional $2.59 in 1993.

To accomplish the rate hike, the company would double the basic monthly service charged to each customer over three years. The basic fee does not change with the amount of water used.

The City Council complained in April that raising the basic fee would penalize those who use less water without providing an incentive to others to conserve. After promising to revise its plan, the water company waited until a commission hearing in Ojai June 25 to unveil an alternative proposal to encourage conservation.

In the alternative plan, the company’s 2,688 Ojai customers would pay only 5% more on their basic fee along with higher rates for increased water use.

Ojai customers who conserve water would experience a lesser increase on their bills under the alternative plan, but many customers would face much higher bills.

For example, the average household’s water consumption, now $31.86, would increase by $10.62 next year under the alternative plan, compared to a $6.15 jump under the original 41% rate-hike proposal.

After a routine investigation of the company’s records, the utilities commission staff released four reports this week concluding that both the water company’s initial 41% increase and the 44% increase with water conservation incentives are fair rate hikes based on reasonable profit margins.

But commission project manager Richard Tom said that under the proposal that would increase rates with water usage, some Ojai citrus growers might opt to dig new wells instead of paying higher water bills. He said the water company may need to oppose any more private wells in the San Antonio Creek areas where its own wells are located.

The commission staff also recommended the company not be allowed to spend money to hire another service employee or buy a new service truck as is budgeted next year. “The company renders good service and is quick to respond to customers who have a complaint,” the staff report said.