Cal Am seeks rate increase

While the fact that Californians saved nearly 60 billion gallons of water in May is worth celebrating, it may actually cost them.

“Our customers have done such a great job at saving water,” said Catherine Stedman, Cal Am manager of external affairs. “We have fixed costs to maintain the water system, so when you’re selling less water, then that price per unit of water will need to increase.”

To help make up for the shortfall, Cal Am is requesting a 15 percent rate increase for customers on the Monterey Peninsula.

“The costs of maintaining the water system stays the same, no matter how much water we sell,” said Stedman.

If approved, the spike will happen over a three year period. A typical bill will go from about $61 to $72 a month.

“We’re upset that we blindly go along with what I call feeding the beast,” said George Riley with Public Water Now.

Advocacy group Public Water Now, along with neighbors, told KION they feel Cal Am is sending out a backwards message.

“Please conserve, please conserve, and we’ll help you save water and then they don’t tell us, except every once in a while, like now,” said Riley. “But we’re going to come back and get the money that we don’t collect because of conservation. It’s just a fork to tongue operation from my stand point.”

Cal Am said the rate increase will also help pay for about $9 million for infrastructure improvements, which include repairing aging mains and rehabbing wells that draw groundwater.

“Making sure that you have infrastructure that is reliable and can last for years and years to come is of essential importance for all of us,” said Stedman.

Residents said they wish they could have more input on local water management.

“If it we’re publicly owned, that money would stay local, it would churn in the local economy,” said Riley.

Cal Am said it’s still encouraging customers to conserve water.

The rate increase application will go through an 18 month review process to determine if it’s worth approving.

Customers can submit comments to the California Public Utilities Commission, who will also hold public meetings about the potential hike.

ORIGINAL STORY: About 100,000 Cal Am customers could see a 15% spike in their water bill. The company is proposing the hike to pay for repairs to infrastructure.

This comes after the State Water Resources Control Board announced Wednesday that Californians reduced residential water use by 28 percent in May.

KION’s Maya Holmes will tell us what’s behind the proposal tonight at 6.