Lucerne Water Issues

By Janie Ultsch, REALTOR©, GRI
Contact Janie at janie@countryair.com

Recent Updates from the Record Bee:

June 23, 2006

LUCERNE Administrative Law Judge James McVicar has released a draft of the proposed settlement for determining water rates in Lucerne, but has requested additional information before final rates will be approved.

In September, California Water Service (CWS) requested that the California Public Utilities Commission (CPUC) approve a 273 percent increase in water rates for Lucerne residents to pay for a new water plant.

The Division of Ratepayer Advocates (DRA), who represents the rate paying customers of utilities regulated by the California Public Utilities Commission, said in a December report that, "Water rates should be low enough so that low-income customers will not have to displace other essential services (food, energy, medical care, etc.) to pay their water bills."

That's the message Lucerne residents gave McVicar repeatedly at the November hearings held at the Lucerne Alpine Senior Center. Lucerne Community Water Organization (LCWO)'s pro bono attorney, Stephen Elias, communicated that message again, entering it as evidence in hearings held in later January.

LCWO was granted intervenor status in the hearings to speak on behalf of Lucerne's residents.

"When his final decision comes in," Elias said last week, "it will have a set rate for Lucerne."

McVicar has asked that Cal Water and DRA "provide assistance to the Commission's Water Division in preparing the figures and appendices needed to complete the proposed decision."

Elias said that McVicar "wants more information on the actual numbers from CWS to complete his decision."

In March, all parties in the rate case settled to establish a new Rate Support Fund (RSF) to address the issues of who would pay for the upgrades to the water plant and how to give a subsidy to low-income residents.

"The new RSF settlement would ... lower rates in [Lucerne] by spreading some of their costs across all 24 [CWS] districts. It would also provide support for a new low-income ratepayer assistance program," the proposal says.

"He ruled on what he could judge on, what he had the information for," Elias explained, "Now he's waiting for more information from CWS and DRA."

And so is Lucerne.

January 20th, 2006 Record-Bee Update Detailing Cal Water Reaction (PDF 12KB)
December 24th, 2005 Record-Bee Update (PDF 15KB)
November 22nd Record Bee Article Detailing Hearing (PDF 20KB)

Are you thinking about buying real estate in Lake County? Then you are thinking about coming to the right place. There’s truly something special and different about living in Lake County, California. The natural, rural environment and the relaxed atmosphere make it a wonderful place to call home.

Don’t let the Lucerne CA Water Services Water Proposal scare you away. In 2005 the California Water Service Company responsible for Lucerne’s water system proposed a rate hike to cover long delayed system upgrades and expansion. The increase would bring the average water bill to over $300/month by 2008. The current water system does not meet state requirements and is in need of a larger storage tank as well as new pipes to replace the galvanized pipes installed over 70 years ago.

At least two solutions have been brought to the table by the CWSC. These include a revolving loan fund from the state and a rate based equalization involving nearly a half million CWSC customers. The rate based equalization solution would spread the cost for Lucerne water system improvements out over the entire CWSC customer base. This method has been successfully employed in previous years for other types of utilities but has not been tried with water to this point.

It’s really very simple. Vote NO on the RBEA (Rate Base Equalization Account) and let our government know were you stand and how this could affect you as a new property buyer in Lucerne. We can make a difference. Ask your local agent for more information.

California Water Services in Lucerne says they recognize that it would be difficult for Lucerne customers to afford the rate increase that is needed to pay necessary water system improvements. That is why they have proposed a Rate Base Equalization Account (RBEA) in their rate case. If the California Public Utilities Commissions approves the RBEA proposal, the rate increase would be dramatically reduced because costs for certain improvements would be shared by all Cal Water’s California customers.

If you support the RBEA proposal, please let the Commission know in one of the following three ways. Whichever way you choose, be sure to mention Application 05-08-007.

1. Write to:
Public Advisor’s Office
California Public Utilities Commission
505 Van Ness Avenue, San Francisco, CA 94102

2. E-Mail:
Public.advisor@cpuc.ca.gov

3. Call toll-free:
1-866-849-8390

Don’t forget about attending each and every meeting in regards to this water issue Lucerne residents are now facing. The next meeting held by the PUC is scheduled for Monday, 11/21/05 at 2 P.M. and 7 P.M. at the Lucerne Senior Center.

Additional Resources regarding Lucerne's Proposed Water Increase.
System Improvements Driving the Lucerne Rate Increase (PDF 38KB)
Lucerne Rate Increase Components (PDF 52KB)
Lucerne's General Rate Case (PDF 112KB)
Online Bill Pay (PDF 62KB)
Low Income Assistance Request (PDF 46KB)