Decision on Water Rate Hike Delayed for Clients’ Views

A decision on whether the state Public Utilities Commission should allow the Santa Clarita Water Co. a slight price increase, after first recommending a 20% price cut, was put off Tuesday to allow the water company’s customers time to play a role in the proceedings.

State administrative law Judge Orville Wright listened to three of the water company’s customers at a public hearing Tuesday and agreed that they should have a say in the decision.

Wright delayed a ruling on the terms of a settlement that the company reached with the PUC’s Office of Ratepayers Advocates until the terms can be given in writing to the company’s customers to be studied.

“I want everyone to know everything we’re doing here,” Wright said. “I want to come to an informed decision.”

The three who testified at the public hearing were among the 61 customers who filed a complaint last year claiming that they had been overcharged by the company, which serves about 20,000 customers in the Canyon Country and Saugus area.

The customers complained to the PUC, which polices private utilities, after the company asked for a rate increase.

Accusing the company of squandering money on high pay, luxury cars for its executives, and phantom employees who collected salaries but were rarely present, the PUC ratepayers office recommended last month not only that the rate increase be denied, but that the company be forced to cut prices 20% to compensate customers.

However, in a proposed settlement announced last week, the PUC officials backed off that demand and agreed to accept a 1% increase in the company’s prices.

The hearings will resume in Los Angeles on Feb. 19.