| San Diego County, CA | November 5, 2002 Election |
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Rate Stabilization Fund Reduced to ZeroBy Richard WrightCandidate for Board Member; Otay Water District; Division 5 |
This information is provided by the candidate | |
There is a need to critically evaluate the rate stabilization fund to determine the minimum size needed to accomplish its purpose. Clearly, a zero fund does not acccomplish the purpose of having a rate stabilization fund.The purpose of this fund is to provide a cushion to soften the blow of rate spikes by wholesale water suppliers. When these spikes occurred in the past, ratepayers were protected from erratic changes in water prices because of the protection provided by this fund. However, ratepayers are now more vulnerable than was previously the case. An editorial in the San Diego-Union Tribune, dated July 11, 2002 said, "the $8.4 million hit on the rate stabilization fund was not a smart thing to do considering that wholesale water rates are likely to increase soon." Wholesale water rate increases impact the retail customers, i.e. the ratepayers less when there is an appropriate rate stabilization fund. |
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ca/sd Created from information supplied by the candidate: October 30, 2002 09:50
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