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Published on 08/21/1995 All articles from this issue

California Water Service Company raising water rates in Los Altos

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By Clyde Noel / Town Crier Staff Writer

The California Public Utilities Commission (CPUC) granted the California Water Service Company (CWS) a three-year rate increase for the Los Altos district, which will translate to minimal increases for Los Altos-area residents.

Water bills will increase .68 cents a month for 1995, an additional 65 cents a month in 1996, and 66 cents a month more in 1997. The rate increase went into effect Aug. 15 and will be prorated for the month. As an example, the monthly bill for a residential customer using an average 2,420 cubic feet of water is $41.97 and will be increased to $42.65.

CWS officials sought a 13 percent rate increase to cover an increasing operational expense and to add new plant capacity to meet customer growth.

Operating expenses increased because wholesale water suppliers increased their rates to CWS. Purchased power and pump tax expense increased $472,000 in 1994 due to wholesale suppler increases for purchased water and pump taxes in certain districts.

The increased water rates also reflect a change in the rate of return on common equity from 10.2 percent to a 11.05 percent. The increase on return on equity allows CWS to attract and retain needed investment.

CWS net income for the second quarter was $3,467,000, which is equivalent to 55 cents per common share. Net income decreased primarily to the heavy rainfall and cool weather during the spring months causing a decrease in consumption compared to last year when there was less than normal precipitation in the second quarter.

Net income for CWS in the twelve months period ending June 30 was $13,449,000.

CWS, headquartered in San Jose, serves about 17,400 customers in Los Altos and parts of Los Altos Hills, Mountain View and Cupertino.