Oct 04, 2024
The good news: A rate analysis showed years of drought-management outreach and water-conservation lessons appear to have taken hold, playing at least a role in declining consumption rates presented at the Santa Clarita Valley Water Agency meeting Tuesday.  The bad news: The numbers were shared as part of the SCV Water analysis being used to justify a rate hike, which water officials are looking at making after November’s election.  Using the numbers discussed during the SCV Water meeting, the rate hike would take the average monthly bill from about $59.40 to $62.97, according to a presentation by Rochelle Patterson, chief financial and administrative officer for SCV Water.  “It’s showing that customers are consuming less water, we’re meeting our targets — and we can kind of see that here,” said Patterson.   The discussion at SCV Water’s regular meeting was part of an update for the agency’s first three phases for its “Cost of Service Review” in the agenda for Tuesday’s meeting.  “So if we’re looking at (the 2025-26 forecast), back to our fiscal year 2021, we had 32% less consumption (forecast) with more customers,” she added.  The agency also expects the number of service connections, which can range from a new home to a new business park, are expected to grow by about 5% over the next five years, based on its forecast, she said, which is a slower pace than previously expected.  Even predicting growth through the end of the current rate plan, Patterson said, the agency expects there will be 25% less consumption than the 2021-22 fiscal year.  SCV Water said it came up with new data, which predicts 3.7 billion fewer gallons of consumption from its previous 2020 study, based on the differences in the two studies, which she also explained to the board.  “Looking at ‘what we know’ over the next five years, speaking with engineering over what developments are coming, the number of connections that we think are actually going to happen in the next five years, versus the methodology that was used in the prior rate study,” Patterson said. “The prior study used the Urban Water Management Plan, looking at the population and number of projected connections at build-out. From there a growth rate was used in the calculation for that study.”  She mentioned a slowdown of development tied to COVID-19 as another factor that impacted the previous revenue projections, as the agency relies on new connection fees as a way to offset its costs.  The agency’s discussion also included a presentation from SCV Water’s state-mandated independent ratepayer advocate, who largely supported Patterson’s presentation and staff findings.  The advocate from Robert D. Niehaus did recommend the agency take a closer look at its cost analysis with respect to recycled-water customers and develop a separate cost model for that usage.  The rate being proposed in the discussion put the district on the lower end of average monthly bills for the region, according to an SCV Water comparison. An SCV Water chart showed the low end of the scale was Victorville, which charges an average of $47.34 per month, compared to CalWater in the Antelope Valley, which runs closer to $107.69.  SCV Water Agency staff are expecting a rate-increase proposal for discussion at the local water board’s Nov. 19 meeting.  Ratepayer help  The agency also sought to increase awareness about its Ratepayer Assistance Program, which it believes is being under-utilized.   The program, which started in 2023-24, has at least 100 spots available for eligible residents based on the agency’s data.  Anyone enrolled in SoCal Gas’ California Alternate Rates for Energy program is eligible, according to officials. Priority is given to individuals who are at least 62 years old, a veteran or permanently disabled.  The program lets people qualify for a $10 monthly credit on fixed charges for qualifying residential customer accounts toward their respective monthly water bills for up to a 12-month period during a fiscal year, according to the agency.   The post SCV Water discusses growth ahead of rate-hike talk  appeared first on Santa Clarita Valley Signal.
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