CalAm water rate system criticized by customers during study session

Water rates are coming under scrutiny on the Monterey Peninsula as some customers are saying California American Water is charging residential customers unfairly. Some residents said they believe they’re paying more for water than they should be charged. This comes after state ratepayer advocates recently claimed local businesses were getting a break.

“Our rate payer representatives in San Francisco suggest that the rates that are charged to commercial customers, are more favorable to them and more discriminatory to residential customers,” said George Riley with Public Water Now.

Riley said he’s concerned with these recent findings by the Office of Ratepayer Advocates, a division of the California Public Utilities Commission, explaining current rates for residential customers are 8 percent higher than their fair share. CalAm said residents should pay more because there’s more residential customers.

“We do not set our water rates. Our rates are set by the state of California by the Public Utiliies Commission, and they direct us to ensure that residential customers pay their fair share for water commercial customers pay their fair share,” said CalAm spokesperson Catherine Stedman.

Continuing a discussion Cal Am started in August, the company said its trying to help customers understand a new rate system it started for businesses a year ago. Businesses are now using a flat-rate system, while residents are still using a 5-tier system. CalAm said businesses are being rewarded for conserving.

“If you have done everything you can to retrofit all of your fixtures, reduced your outdoor use, then you’ll be paying a lower rate for water,” Stedman said.

CalAm said it recognizes the fact many residents are good at conserving as well. But also said because residents consume more than businesses, there’s a higher cost to provide the service.

Some residents said they don’t believe businesses’ conservation efforts are being monitored close enough by Cal Am. CalAm said the incentives to save water are working, because overall use is going down.