CPUC Hearing - 2026-04-13
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California Public Utilities Commission
Follow its sittingsSpeaker 2
I'll begin by providing some brief introductory remarks about my role in this proceeding. As the judge in this proceeding, I manage the day to day activities of the case. As commissioner Baker said, the commissioners will decide with a vote on whether to approve the request made by the utility. So my my role as judge is to evaluate all the evidence in this proceeding and to write a proposed decision based on that evidence. The current schedule for this proceeding indicates that the commission will vote on the decision in the 2026.
Now I'll provide a brief summary of the utility's application. In January, Suburban Water Systems submitted its general rate case application seeking commission approval of their expected costs for owning and operating the company for the years 2027, 2028, and 2029. We're here this evening to receive comments from the public on their request to increase rates by 19.41% in 2027, by 8.91% in 2028, and by 8.15% in 2029. Comments from you, the public, help the Public Utilities Commission reach an informed decision. The commissioner and I will pay close attention to the opinions expressed during today's public hearing.
There is a court reporter present who will be transcribing everything that is said today. So if you do speak, I ask that you speak slowly and clearly so that the reporter is able to capture everything that's said. The written transcript of today's hearing will be posted publicly on the docket card for this proceeding. In addition to submitting oral comments today, written comments on Suburban Water's application may be submitted on the docket card for this proceeding by going to the following URL, apps.cpuc.ca.gov/c/a26010zero. As of today, we have received 15 public written comments.
As there are many from the public who wish to speak today, I ask that each speaker limit their comments to a few minutes. I will provide a more specific time limit once we have a better estimation of the number of callers. As a reminder, press star one on your phone now so that the operator may begin to form the speaking queue. Thank you. Okay.
So it's my understanding that we have three speakers in queue. And based on that, let's go ahead and start with three minutes for each speaker. A chime will be sounded when your three minutes is up. And as a reminder to those preparing to speak, please speak slowly and clearly so that the reporter is able to capture everything that's said. Before you begin your comment, please state and spell your name, and if you'd like, the city you're calling from.
We will be able to hear you best if you speak directly into your phone or headset and avoid having your phone on speaker when you are providing comment. Operator, please call on the first person in the queue.
Speaker 1
Thank you. The public participation line is now open. Our public our first public comment comes from Joshua Houghton. Your line is open.
Speaker 4
Thank you very much. Again, my name is Joshua Houghton. I'm a resident of Whittier. Before I begin, I want to acknowledge the important work that employees of the Suburban Water Systems do and the critical nature of the services they provide. I'm not here to be right the people who deliver the service, but I cannot quietly accept the proposal that has been put forward.
40% is an astronomical increase in cost, especially considering the perceived value to the customer remains largely unchanged. In the private sector, for a company to justify such an increase, a commensurate increase in delivered value would be expected, the absence of which would result in customer attrition. However, in the case of a public utility, there is no feasible alternative, so customers are forced to pay whatever price the utility provider puts on their service. It's the duty of the public utility, however, excuse me. It's the duty of the public utility commission to hold utility providers accountable.
So that means ensuring customers are not being taken advantage of and that the utility providers are responsibly managing their operations in such a way to minimize operating costs, allowing services to be delivered at a reasonable price. In today's economic environment, with the cost of living nearing or surpassing what many can afford, the role of the commission is more important than ever. Prior to approving such an astronomical increase in pricing, it's my sincere hope that the commission has performed a thorough review of Suburban Water Systems financial reports with a specific focus on operating expenses to ensure an unreasonable burden is not being placed on the consumer to compensate for irresponsible financial management. Prior to this call, I did some digging and found that the 2020 fiscal year, the last year for which financial statements were made available to the public on the California Public Utility Commission's website, Suburban Water Systems reported $7,900,000 in miscellaneous general expenses. That's almost $8,000,000 listed as miscellaneous general expenses, making up over 15% of total operating costs for the year.
Additionally, administrative and general salaries and miscellaneous source of supply expense were reported at 4.8 and 4,500,000 respectively, which together add up to 32.8% or nearly one third of total operating expenses for the year. To be clear, these are not pumping treatment or transmission expenses. These are salaries and miscellaneous expenses. Since no public facing financial reporting has been made available since 2020, I can't directly speak on how those numbers have moved, since then. But before approving a mind bending 40% rate increase, I certainly hope that due diligence is being done to ensure customers are not being made to bear the burden of administrative swap.
Speaker 3
The justification for the proposed increase was linked to three critical needs, the first of which was declining per customer water sales from continued conservation. Now to be clear, efforts to conserve water already come at a cost borne by the customer. These come in the form of not only monetary costs as we undertake landscaping renovations and replacement of appliances, at least for those who can afford them, but also in the form of intangible costs as we allow our lawns to brown, reduce frequency of car washes, and forego a long hot shower at the end of a hard day's work. Up to now, the offset for these costs has come in the form of knowing that we're contributing to environmental sustainability and a reduced monthly bill based on decreased consumption. This new proposed increase, however, justified by sub water systems as necessary to offset decreasing revenue associated with reduced customer consumption not only strips away the only real tangible benefit to the consumer for all the efforts to conserve, but also removes all incentive to further conserve in the future.
Speaker 4
The California Public Utility Commission should seriously consider whether financially punishing users for their efforts to comply with sustainability guidelines is a precedent they wish to set.
Speaker 1
Our next public comment next public comment comes from John Liu Resonant. Your line is open.
Speaker 4
Hi. My name is John Liu. I'm a resident of West Covina, and I'm concerned about the proposed 40.51% increase. An increase of this magnitude requires strong justification and full transparency. First, I request documentation of all cost reduction measures taken prior to this increase request, including documentation of alternative funding sources, including grants, bonds, state, or federal programs.
Speaker 5
These funding sources should be prioritized over increasing the rate for customers. Second, I request clarification on the cost allocation because, the cost allocation is much higher for residential customers compared to industrial or business where, for in for residential, we're looking at closer to 43%, whereas for business and industrial, it's closer to 36 or 26%. Third, the application cites the declining customer, customer sales due to conservation, and customers shouldn't be penalized for conserving water. For these reasons, I respectfully request that the commission carefully review the justification for the proposed increase. Thank you.
Speaker 1
Thank you. If you'd like to make a public comment, please press star one, unmute your phone, and clearly state your name and location for public comment introduction. Our next public comment comes from Brook Talavera, resident. Brook, your line is open.
Speaker 6
Hi. My name is Brook Talavera, a resident of Glendora. I echo everything the other two said. This is my first time calling into something like this. But, essentially, I did wanna provide comment on that same reason cited being the declining per customer water sales from continued cloud conservation.
Mama. Consumers have been asked for years to conserve water, and we complied. So now treating that as a revenue problem and raise rates is that for the that is a reason penalizes people for doing exactly what we were told to do. Sorry. My five year old wants to tackle all of a sudden.
But yeah. So, yeah, I just wanted to comment on that mostly. Also curious how how long your your written comment website is available to submit written comments. Thank you.
Speaker 2
Thank you, miss Talavera. The written comment section of the website will remain online, so you can go ahead and submit there if you'd like at any point.
Speaker 2
K. Thank you, operator. I just like to say once more. If you would like to provide additional comments, you may submit written comments on the docket card for this proceeding, which can be found on the commission's website at apps.cpuc.ca.gov/c/a26010zero. Alright.
Let me repeat that last part. A2601001. If you are watching and would like to speak, please speak 1. Sorry. Please press 1, and the operator will form a queue of speakers.
Okay. Let's be off the record. K. Operator, let's take a five minute break. We'll give callers the opportunity to call in, and we'll pick up again in five minutes, so at 06:24.
Speaker 2
Let's be on the record. K. Thank you for your patience. We're returning from a brief break in which, we are looking at comments for a Suburban Water Systems general rate case application. I understand that we have a caller on the line.
Operator, please call on the caller. Please, introduce the caller.
Speaker 7
Yes. I'm Good Citizen. I live in La Mirada. Few years ago when the new brown the new green was brown, they were trying to have us conserve water. I got a notice in the mail from the state saying thank you very much, a little pat on the back saying thanks for saving 20% over what I usually use.
And then, like, a month later, you guys wanna raise our rates. I don't get it. So we save water, and then we get punished for saving water because you're not selling as much water. I wanna echo everything else that people have said. You guys are spending money miscellaneous.
We don't know why. And I'm I'm sure there's a lot of just like we see everywhere else, a lot of fraud. And you need a independent commission to come in there and and see why you're doing this. It's just unreasonable. You know?
I I spend it's getting to a point where, you know, I I buy a bottle of water to drink and and to cook with. I don't know to just use it at the shower. I used to damn turn off the water when you were telling us to conserve water. Now you know what? Everyone should just leave their faucets on if you're gonna if you're you're doing it by how much you sell.
It's just ridiculous. That's all I have to say. Thank you.
Speaker 1
Our next public comment comes from Richard Summers, resident. Your line is open.
Speaker 5
Hi. My name is Richard Summers. I live in La Mirada, and my concern is that I am retired now. I'm 73. I get a small pension of $912 a month that will never go up, never gets adjusted for inflation.
Speaker 8
I get a Social Security check after the deduction for Medicare of $1,702, and everything else is going up, but nothing is going up as high as this request. And I don't know. How how do you pay for this sort of thing when you also have to cover your food and you have to cover gas for your car and you have to cover other utilities? I think this really needs to be looked at as a really it's almost an obscene increase to be asking for so much. I mean, they're projecting that at the end of three years, my water rate per my bill per month will be going up at least $32 a month at the end of three years.
So I'd just like them to really consider the impact of a rate increase like this on low income and fixed income people who can't go back to work and make up the difference. Thank you for listening.
Speaker 2
Okay. Let's take a brief, five minute break, and, we will resume at that point off the record. K. Let's be on the record. It's my understanding that, we do not have any additional callers waiting to make comments.
Speaker 6
I would like to, reiterate that if you would like to provide additional comments, you may submit written comments on the docket card for this proceeding, which can be found on the commission's website at apps.cpuc.ca.gov/c/a260100one. I'd also like to note that we will be holding in person public participation hearings tomorrow, April 14 at 6PM in the city of Walnut. The location is Walnut City Hall Council Chambers. Address, 21201 La Puente Road, Walnut, California 91789. We also have an in person hearing on Wednesday, April 15 at 2PM in Buena Park, California.
Speaker 2
The address is 6650 Beach Boulevard, Buena Park, California 90621. Now with that being said, I would like to thank everyone who spoke today. We will be considering your comments very carefully as we deliberate on this case. And, this concludes this evening's public participation hearing. We will now be off the record.
Speaker 1
This concludes today's conference. You may disconnect at this time. Thank you.
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