Public Utility Commission regulated water companies have rates increased

By R. William "Bill" Robinson

The paper explains some of the reasons why water bills in the San Gabriel Valley have sky rocketed in the past 4 years.

The following outlines "the perfect storm" of factors that have triggered raised cost to the water billing paying public:

Due to a court decision 4 years ago of Federal Judge Wanger, Fresno; the price of imported water upon which the Valley depends has tripled; due to increased costs of water delivered by the state water project. Additionally, the law and voters demand clean water that meets all legal standards. Additionally the price of cleanup of contamination plumes in the San Gabriel Valley groundwater is high and rising.

Water is too expensive not only reflecting the high cost of groundwater contamination cleanup. (See also website for cost break down)

But also the Rate-payers Advocates office of the Public Utility Commission (PUC) has been a bit lackadaisical about allowing Utility applicants to get away with higher rate increases than would ordinarily be justified by more forceful advocacy based on a higher standards of evidence and verification. You pay while Utilities have been able to profit from ground water clean up. Though ratepayers did not contaminate the aquifer, they have borne much of the cost burden of cleaning up the local water. The government never recovered the full costs of cleanup from the guilty parties.

The water industry is not organized as a non-profit industry. Stockholder interests, privatized ownership models are the norm. Suburban Water aka Southwestern Water, bought in 2010 by J. P. Morgan-Chase is bank owned and now requires a profit center for dividends for bank stockholders. The banking industry it seems can never earn enough to satisfy the demands of stockholders for dividends and appreciation of their invested capital. Bank ownership has ultimately changed Suburban's water supply philosophy and management.

WQA cleanup costs have increased and increase have been saddled upon the rate payers: See the minutes of The basin Water Quality Authority that is headquartered in West Covina. Near City Hall. The chief executive officer is former Upper District Director, Mr. Ken Manning.

An unelected 9 member San Gabriel basin water master board can now levy assessments on valley rate payers as agreed to by Judge Maureen Duffy-Lewis recently. In a lightly attended and unreported, by local media court hearing on June 20, 2012; the Upper District board refused to go to bat for rate payers in this case. But Bill Robinson, did testify before the judge explaining the down side of allowing an unelected, court controlled entity such as the basin unelected basin watermaster vastly increased authority over rate-payers pocket books and the abiltiy to go into debt, that is borrow funds.

But the judges decision allowes the industry to fatten up, since then becoming another unaccountable layer of the industry. All the powers that were requested were granted by the court. Water rights holders did not appear in court and generally took the change in a passive manner by their refusal to get involved in the hearing. The single party appearing in opposition was Director, Bill Robinson.

and YES part of this litany of increases were pass throughs of Upper District rate increasea as well as Metropolitan Water District rate increases. Though property tax increments payable to Upper District has not increased; the administrative increments and charges by the Upper District's, Monrovia office have increased by about 80 percent in 4 years due to 3 rate increases. Robinson dissented on 2 of the 3 rate increases.

It is said that the PUC being a toothless regulator, has granted Suburban water huge unjustified rate increase based on misleading and unverified evidence. The advocacy office is lazy or co-opted. Robinson has fought excessive water rate increases by Azusa; and Suburban water before Public Utility Commission. To end this Summary on a positive note: Residents could notice the District has developed smart voluntary community water conservation programs. Not encouraging new mandates and fines for water wastage. Morevover, on the positive side the District has used the new revenue to complete construction in December 2012 on a major recycled water pipeline for West Covina schools/parks and South Hills Country club saving enough drinking water to serve 5,000 new or existing homes.