Oct. 04, 2005
California American Water plans to request a rate hike for its customers in the Monterey Peninsula. The company says that the additional revenue would offset costs of a $191 million desalination project planned for Moss Landing.
The rate increase is proposed as an "interim rate relief." The public utilities commission will address this request from California American at an upcoming public hearing in San Francisco. If the PUC approves the request rates could more than double.
says the increased rates will pay for fees to engineers to work
already completed and for that expects for the Coastal Water
desalination project. By
raising rates a little now, they say, they can avoid rate shock
later when the full impact will be felt.
If the rate increase
is approved customers would be charged an estimated $5.25 per month per meter to recover what it calls its "existing pre-construction cost memorandum
account," a $2 per unit "high block surcharge" until the water project starts producing
water and a connection fee of $12,000 per acre foot of water on new connections.
It would also surcharge $2.20 per 750 gallons, initially,
increasing to $3.83 in 2008.