Ryerson introduced Victor Chan of
the CPUC Division of Ratepayer Advocates and GSWC regulatory affairs
manager John Garon. Ryerson then explained each would make a brief
statement before commentary would be taken from customers.
“We are an independent arm of the commission,” Chan told
the crowd, “in charge of reviewing the application and issuing
a report with a recommendation regarding the rate increase request.”
Chan said that the DRA consists of a multidisciplinary staff that
includes engineers and accountants who review all components of the
application before deciding whether to grant or modify the amount
in the applicant’s request. “Any comments you make will
be helpful,” Chan said and invited customers to send comments
to him at vcc@cpuc.ca.gov.
Besides ratepayers, the DRA is also charged with protecting California’s
economy. A recommendation report will be made about the rate increase
on May 14. CPUC public advisor Norm Carter said a copy of the report
would be available later in the week by going to dra.ca.gov/water/index.htm.
The public may also request a copy of the hearing transcript at $2
per page. Carter estimated the transcript would be about 100 pages.
“This is your opportunity to make your statements and have them
be part of the record,” said Geron after reviewing the application’s
request. Although many of the ratepayers expressed outrage, they did
so with respect and decorum.
Jere Kersnar began the comments with an overview of the complaints
he has received from city residents about Golden State. Citing examples
of poor water quality and system reliability, as well as rates up
to three times higher than neighboring water suppliers. Kersnar called
the rate increase outrageous.
“The City of Ojai requests that PUC should grant no increase
unless and until the company develops, and PUC approves, an improvement
to the system that includes water quality and reliability,”
said Kersnar.
“This is one of the rare issues in our town for which there
are not two sides,” said Ojai City Councilwoman Rae Hanstad.
“The constituency is desperate and asking us to help buy our
way out of this problem.”
Another Councilmember, Steve Olsen, related details of the Jan. 5
fire that consumed one of his rental houses. “The fire department
responded within eight minutes. When I arrived, the fire chief explained
to me that he was trying to put out the fire with a garden hose because
two Golden State hydrants within 50 feet of the house were nonoperational,”
Olsen said. “We lost the house, in my opinion, because of poor
maintenance on the part of Golden State Water.”
Customer Nancy Horswell called the rate application an “extortionary
increase.”
Ojai F.L.O.W. organizer, Kathy Couturie, submitted a petition with
more than 500 signatures requesting that the CPUC supply funds to
do a study on “why our rates are so high and our service so
abysmal.” She went on to ask that the PUC deny “any rate
increase to GSWC on the grounds of negligence in providing essential
water services to its Ojai customers.”
Couturie said of GSWC, “They do not provide reliable water sources
and they do not provide water at reasonable or predictable costs …
We believe that further study is imperative, and look forward to working
with Commissioner Grueneich and the California PUC for a successful
resolution to the consumer water crisis we Ojai customers have been
enduring for decades.” Ryerson brought up that Grueneich is
only one of five commissioners who would be voting on the application.
“Where are the key planning and project plans to keep the core
of this system in shape, which is the Grand Avenue pipeline?”
asked Bill Miley.
Barbara Hidreth related her experiences of repeated lawn, garage and
house flooding from broken Golden State pipes in her neighborhood.
“I’ve had sandbags across the front of my house for a
year and a half.”
Kris Jurgens attended the hearing as representative of the Ojai Valley
Inn & Spa. She pointed out that American Water, Golden State’s
parent company, “announced April 17 that it would once again
be able to offer an increase dividend to its investors.”
“I understand that there has to be a profit or they’re
out of business,” said Bill Horne. “In business, if people
don’t like you, they go somewhere else. But we can’t go
somewhere else. This company is holding us hostage.”
“I think the service has been terrible,” Jeannie Barnett
said of the water company. “That’s not the word I want
to say, but I’m being polite.”
Edward Kutchma listed his research of water companies in Southern
California and pointed out that Ojai GSWC rates are higher than comparable
water providers in San Diego and Orange counties. Richard Hajas looked
at operating costs for Ventura River County Water District, which
he said serves about the same number of customers as Ojai GSWC, and
found the former operated at about one-half the cost.
“I’m an attorney and represent health care facilities,”
said Andy Whitman. “Health care facilities are not allowed to
divert money from basic care until they meet a minimum quality of
care. It they don’t, it’s considered malice. I think that
applies to the people of Ojai who aren’t getting a basic level
of product.”
Sarra Jubinville said, “Water is not a product, it’s a
health necessity. It’s a God-given right. I really think that
Ojai needs to consider getting rid of profits for water.”
George Berg spoke as representative of the Upper Foothill Homeowner's
Association. “Last month our board voted to oppose the rate
hike because it’s so high, quality is low, water is hard and
the system needs repairs.”
“GSWC has failed the citizens of Ojai,” said Sara Beby,
“and I ask the PUC to deny the application.”
“Water service continues to degrade,” said Heidi Whitman.
“Everyone in Ojai can tell you where the bad spots are. Basically,
what Golden State has done is patch the roof only when the rain is
coming then never replaced the roof.”
“A normal business would put money into a reserve account for
maintenance,” said Jerry Green. “Golden State finances
it.”
Ojai Valley Sanitary District Director Stan Greene commented on Golden
State’s management. “One of the questions PUC should be
asking about is the accounting system,” said Greene. “There’s
no description of the improvements they want the money for, so, to
me, there’s no real intention.
“They have a monopoly and we can’t break the contract,”
said Greene, adding that GSWC is a deteriorating system. “No
one in their right mind would want to take it over.”
“It doesn’t seem fair that we have to pay more for less,”
said John Whaley, “and I request you look at this and deny their
request.”
“Where have you been,” Kerri Climer asked CPUC officials.
“You’re supposed to be looking out for us. Citizens have
told you about poor quality, poor service, a man’s house burned
down, a woman’s house has flooded multiple times.
“Before I even get water, I get a $50 service fee, then I get
to pay for crappy, brown water. I’m asking you for a decrease,
say 75 percent. Golden State Water has failed this city. You folks
have failed us too.”
“Anyone interested in what PUC has done for this community can
look at public records,” Ryerson said as he closed the hearing.
“All the information is available to you.”
Chan and Golden State Water Company officials declined further comment
at the end of the meeting. For more information from the California
Public Utilities Commission, go to cpuc.ca.gov.
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