CUC said the purchased power charge will be adjusted whenever it adjusts its Levelized Energy Adjustment Clause, or LEAC, and/or its Monthly Fuel Adjustment Clause fuel charge.
CUC chief finance Officer Charles H. Warren yesterday said their proposed water and wastewater rate is still subject to revision based on changes to the electric rates.
“Power is the biggest expense in the water and wastewater divisions. The utilities commission has ordered that those divisions pay for the total cost of providing services. Those costs need to be recovered from the ratepayers,” he said in an email interview.
CUC is seeking to implement three new customer classes: the multi-family customers, CUC, and Public School System.
Water
For water, CUC collects a fixed charge from unmetered customers: from $40 to $54 for residential and multi-family; and from $204 to $275 for commercial, CUC, government and PSS.
CUC said the unmetered and flat rates will be phased out upon completion of the meter change-out program.
On Oct. 10, 2011 CUC filed a petition and supporting evidence with the commission to raise its water and wastewater rates as well as some electric fees and charges.
CUC said its rate increase request is “primarily due to reasons that are beyond their control.”
Wastewater
For wastewater, CUC will increase the monthly service fee from $9.69 to $12.21 for the metered and unmetered residential and multi-family customers; and from $9.24 to $11.64 for the commercial customers.
The volume rate per 1,000 gallons for residential and multi-family will increase from $1 to $1.26 for 6,000 gallons; and from $3.13 to $3.94 for 6,001 and more gallons.
The volume rate per 1,000 gallons for commercial will increase from $3 to $3.78 for the first 6,000 gallons, and $3.13 to $3.94 for 6,001 and above.
The volume rate per 1,000 gallons for government entities is from $68 to $85.68 for over 6,000 gallons.
Although the effective date for the rate increase is set for February, the possibility of a change in the rate schedule is still imminent, CUC said.
Warren said “fuel charges are the largest component of the electric rates, and are charged to ratepayers through the LEAC.”
“The LEAC will be reset at the January regulatory session [of CPUC]. If the LEAC changes from the current level, water electric and wastewater electric charges will change as well,” he added.
Power
For power, CUC said the average residential ratepayer uses approximately 500 kWh per month.
The proposed rate adjustment will increase the average residential ratepayer’s monthly electric bill by $6.87.
For customers who use approximately 250 kWh per month, the proposed rate increase will be $4.87.
“Higher volume residential and commercial users will experience greater increases,” CUC said.
According to Warren, the average consumption of electricity has declined over the past 12 months, especially among residential consumers.
“But water has remained fairly constant,” he added.
CPUC will conduct a public hearing on Jan. 20, 2012, at 10 a.m. in the Retirement Fund building conference room on Capital Hill.
The commission will receive evidence and hear arguments, discussions and public comments on CUC’s petitions for water, wastewater and power base electric rate increases.
