ITEM:		ACTION ITEM
16.	CONSIDER RECOMMENDATION FROM WATER DEMAND COMMITTEE REGARDING CALIFORNIA AMERICAN WATER BILLING PRACTICES
Meeting Date:			October 15, 2012	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Rachel Martinez	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: The Water Demand Committee reviewed this item on September 25, 2012 and provided the options outlined below.
CEQA Compliance: N/A

SUMMARY: Over the past several months there has been increased media coverage on unexpectedly high bills and complaints from California American Water (CAW) customers. The increased coverage has resulted in heightened public concern and confusion over the issue. District board members and staff have been asked by members of the public for help in resolving the problems they are having with the private water provider.

CAW General Manager Eric Sabolsice was invited to give a presentation explaining the high bills and water leaks during the September 17, 2012 MPWMD Board Meeting. Mr. Sabolsice attributed the spikes in bills to typical residential leaks that result in higher than normal bills due to the tiered rate structure currently in place. He also outlined CAW’s high bill adjustment policy. Following the CAW presentation, the Board referred the matter to the Water Demand Committee to develop recommendations for Board action.

During its September 25, 2012 meeting, the Water Demand Committee discussed the issue and agreed to recommend the following options to the Board:

1. Have the District serve as the local ombudsman for persons wishing to lodge a complaint with the California Public Utilities Commission (CPUC) regarding spikes in metered water use. This would involve the District providing CPUC contact information and complaint forms at the District offices.

2. Place information on the District’s website on how to file a complaint with the CPUC, including a link to the commission’s website.

3. Include information on the CPUC complaint process in the next District newsletter. This newsletter should be mailed to ratepayers in the District.

4. Request CAW include a bill insert in its next mailing with information on the complaint process.

Note: CAW has developed such a bill insert that is going out to customers this month.(Exhibit 18-A)

5. During the next General Rate Case, consider requesting CAW to modify its high bill adjustment policy to bill the increased amount at the Tier 1 or lower level for customers experiencing a first-time unexplained spike in metered water use.

Request CAW to provide data on spiked billing complaints from other service areas.

RECOMMENDATION: The Board should review the options and provide direction to staff on what options to act on.

EXHIBIT

16-A CAW Bill Insert on High Bills

U:\staff\Boardpacket\2012\20121015\ActionItem\16\item16.docx

U:\Rachel\Public Outreach Committee\Board Meeting Items\101512 Item 18.doc