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|  CEWR Files Evidence in Challenge to CLWSC's 71% Water Rate HikeOn October 31st 2011, direct testimony and evidence was filed on behalf of CEWR before the Texas State Office of Administrative Hearings, directly challenging Canyon Lake Water Service Company's filing for a 71% increase in its water rates.
By: CEWR This is the latest achievement by CEWR in its continuing fight against Canyon Lake Water Service Company's (CLWSC) outrageous proposed 71% water rate increase to over 10,000 customers in Comal and Blanco counties. CLWSC is a recently purchased subsidiary of San Jose Water (SJW) out of San Jose, California. It is hoped that this evidence can lead to a final rate order by the Texas Commission on Environmental Quality (TCEQ) with rates substantially lower than the enormous increase requested by CLWSC. CEWR has been involved in this protest since CLWSC notified its customers in October 2010 that there would be a 2 phase increase of rates totaling 71%. Since that time, CEWR managed to organize itself into a singularly focused non-profit organization dedicated to protecting the rights of the water consumers in Comal and Blanco Counties. It successfully submitted more than double the required petition signatures necessary to have its voice recognized as that of the water customers of CLWSC by the TCEQ, engaged several local and state representatives, established an informational web presence, and raised enough funds from hundreds of supporters to actively challenge the proposed increase before TCEQ and an Administrative Law Judge. CEWR successfully negotiated a lower interim rate with CLWSC to remain until the final rate decision is announced in March 2012. CEWR has held several community forums to inform consumers of the protest status and representatives of CEWR have held over 50 smaller such informational gatherings with local homeowners' groups. CEWR now has support from residents of over 30 subdivisions in the Canyon Lake area. The next and most important step in its challenge is presenting compelling facts and arguments at the formal hearing in March 2012. CEWR's lawyers and water rate consultants continue to refine the evidence presented in its testimony and seek additional information as needed to fully prepare it to achieve a final rate order that provides reasonably priced water for all of CLWSC customers. The pre-hearing testimony which CEWR filed focused on challenging three major areas of CLWSC’s rate request: 1. Net rate base – CLWSC earns revenue from return on amount of capital it has invested and put at risk. 2. CLWSC Revenue Requirements – Revenue from ratepayers to support CLWSC earning a “fair and reasonable” profit as defined by the Texas Water Statute. 3. Increase in water rate tariff (costs) to the ratepayers. CEWR is very confident that its submitted arguments will prevail once all facts and evidence are presented at the formal hearing in March 2012. CEWR has never challenged CLWSC's right to make a reasonable profit for the provision of a necessary resource and recognizes the investments CLWSC has made in improving its delivery of product to its customers. The main difference separating the parties appears to be in the use of the term "reasonable" CEWR will conduct two executive level presentations for Homeowner/Property Owner Association officers and interested ratepayers. These updates will take 90 minutes and provide significantly more information about the case and also give individuals the opportunity to have questions answered to assist in informing their membership. If interested, please plan to attend one of these sessions: December 8th 6:30 PM at the EMS Station, Rodeo Drive, Bulverde and December 13th 6:30 PM at the GVTC office, 36101 FM 3159, Smithson Valley. ------------------------------------------------------------ Consider the growing trend with respect to water utilities and rates, based on our current state water codes, which allows outside corporations (or anyone) to take advantage of the smaller utility markets and use those codes to increase the rates to its consumers by exorbitant amounts. Also consider the recent dissolution of a 65-year old water district company (BexarMet) by the vote(62%) of its dissatisfied rate payers. The latest protest by customers of Monarch Utilities has received a great deal of interest recently. This SouthWest Water Company applied in February to combine 8 utilities serving 46,000 South Texans into a company called Monarch Utilities. Their approach "to allow customer service representatives to more efficiently respond" also resulted in a notice to some customers of a 132% rate increase. Remember the lost Bulverde water agreement? Bulverde had negotiated agreements with CLWSC in 2008 which restricted increases to 10% per year, as well as a 2% franchise fee for the city. The assumption of the BexarMet CCN's by CLWSC retained none of those agreements (which were, in great part the reason the city of Bulverde approved the Regional Water Supply and Service Transfer Agreement in 2008). # # # The Coalition for Equitable Water Rates (CEWR) is a non-profit organization of local residents representing residential and business interests to insure that fair and competitive water rates are provided by the Canyon Lake Water Service Company. End
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