Issues:
Water rates and affordability
If you are a PCWA customer in Zone 3 (Alta, Colfax, Applegate), this year your water rates are going down. Here's how it's going to work this year, and why.
Historically, Zone 3 was operated separately from Zone 1 and 2 (Auburn to Lincoln and Roseville). Because our area had fewer customers, and we have such a low density with long distances for pipes and flumes, the cost to operate this upper system was higher than the lower Zone 1 system which has higher density population and shorter distances for pipes and flumes between customers. Additionally, there was debt attached to Zone 3 from its acquisition in 1984. We finally paid down our debt through the rates, which eliminated the financial reason for separate operations of the systems. And particularly in recent years it has become ever clearer that the entire western slope PCWA water system is operated in an integrated way. Many Zone 1 customers are entirely dependent on water conveyed through Zone 3 each year during the Fall when PG&E canals are emptied for maintenance. So the Agency has combined Zones 1, 2, & 3 into a single area of operations.
The change in rates has actually been happening over a series of years, so Zone 3's rates have been going up slower than Zone 1's rates for some time now. But 2008 is the year when the final alignment of rates between the zones happens. And so total rates will go down.
All PCWA customers will have already received a letter notifying them of this change, which is a letter required by Proposition 218. The changes are outlined on that letter. Here's a summary:
Monthly service charges for metered service will be brought into alignment with Zone 1, which means the smallest meter sizes will go down in the monthly charge, and larger meter sizes will go up in the monthly meter charge. For the average household with a 5/8 meter, monthly charges will go from $21.45 to $14.20. State and Federally Mandated Program and Projects charge is going to be eliminated, and brought into the Commodity Charge for water tiers. For the average household with a 5/8 meter, monthly charges will go from $5.27 to zero. Renewal and Replacement Charge will go up. This is the fund that was established and dedicated to replacing our aging water system and making it reliable, and can only be used for that purpose. For the average household with a 5/8 meter, monthly charges will go from $12.50 to $13.69. Tiered rates will be increasing to be in alignment with Zone 1. For the average household with a 5/8 meter, the first tier rates for 400 units will go from $1.07/unit to $1.25 and for the next 600 units will go from $1.33/unit to $1.35/unit.
So the news on rates is good for this year. It should come as some relief during these stressful economic times.
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