Liberty Utilities CPUC hearing (A.24-01-003) (July 29, 2024)
My name is Greg Raven and I live in Apple Valley. I am here tonight to comment on proposed water rates.
If approved, Liberty Utilities will recover forecasted costs. I support the rate increase.
Liberty’s costs of providing water are 95% fixed. This means that when any of their costs go up, it becomes more difficult for them to provide water at previously-set prices. In August 2023, PV Magazine reported, “California electricity pricing exploded in the last three years, far outpacing inflation.” Yesterday, the San Bernardino Sun reported, “Electricity bills have essentially doubled over the past decade.” Electricity is a major component of Liberty’s operations, both in terms of importance and in costs.
High fixed costs also mean that when water consumption goes down, as it does under mandatory reductions in water use, there are few — if any — reduced costs for maintaining and upgrading the water system: The system’s fixed costs do not diminish when consumption wanes. And unlike government-run water utilities, Liberty cannot mask high water expenses by using tax money from the general fund.
Even with the high inflation from Bidenomics and the low water use from water conservation, Liberty has a perfect record of water quality, unlike others in our area.
Also, Liberty invests more in capital improvements per mile of water mains than other systems in our area.
Meanwhile, Liberty charges less for water than other systems in our area. In fact, Liberty’s efficient operation of the water system is shown by the fact that the total revenues collected from Apple Valley customers for water service remained relatively flat over many years — and actually diminished slightly based on inflation-adjusted dollars. Since Liberty acquired the system, the total expenses on a per-connection basis have decreased due to the economies of scale and efficiencies from their business operation.
The Town used to say that we have a better way of life in Apple Valley. For me, a better way of life demands affordable access to water of the highest quality, and this is exactly what Liberty Utilities has been giving us. If we wish to continue our better way of life, we must show our gratitude to Liberty, and support them in this rate request.
Sources
-
Superior Court Judge Donald Alvarez, “Final Statement of Decision: TOWN OF APPLE VALLEY v. APPLE VALLEY RANCHOS WATER COMPANY (CIVDS1600180),” October 8, 2021.
-
John Fitzgerald Weaver, “California electricity pricing exploded in the last three years, far outpacing inflation,” PV Magazine, August 30, 2023.
-
Teri Sforza, “Electricity bills have essentially doubled over the past decade,” The San Bernardino Sun, July 28, 2024.
— Greg Raven is Co-Chair of Apple Valley Citizens for Government Accountability, and is concerned about quality of life issues.
(Presented to the CPUC rate proposal meeting.)
Some other public comments
| Boguslaw Kiepek | Apple Valley, CA | 92308 |
|---|---|---|
| A.24-01-003 I attended the Public Hearing in Apple Valley CA on July 29, 2024 at 6:00 pm. Here is what I heard, well at least what I retained. Liberty Utilities, Ranchos Water applied for an rate increase. The main reason, seems like only reason, for the rate increase, as stated by NAME OF LIBRARY REPRESENTATIVE, is to replace aging infrastructure to guarantee quality water to its customers. If, NAME did not say or claim that the increases were needed because of rising cost of water or anything else. For sure, the cost of supply of water is from natural sources, so I think you can eliminate that from the equation. What I see that Liberty Utilities looking to increase revenue and the dividends. I am willing to say that increased dividends pay large part of the rate increase as I am sure the Liberty Utilities will control their expenses. Thus increasing profits. My big QUESTION is, does the infrastructure really needs replacement or is that just a way for Liberty Utilities to increase revenue and, as I already said, increase dividends. Who is the real expert to determine the condition of the infrastructure? Obviously, we do need to rely on the Liberty Utilities determinations, but does it an accurate representation? What are the honest increases of the costs, other then infrastructure, that Liberty Utilities is facing. Seems like the infrastructure should last a lifetime, well is Liberty Utilities proposal premature? What I mean, maybe suggesting, is that the replacement can wait and be spread over a longer time period. Based on the lifetime of the infrastructure, no some human estimate. Which, would minimize the percentage rate of increase over several more years. I listened to and reviewed the presentation by Cal Advocates and their opinion widely contradict Liberty Utilities presentation. I would suggest and reccomend that Public Utilities Commission rewiew these in more detail. Notwithstanding, the pleas of the Apple Valley residents, representing an aging population on fixed income, the 28.1% rate increase over 3 years is outrageous and should be denied. An increase, if any, should be equal to Social Security and be closer to a reality in our community. Finally to be honest, Liberty Utilities proposed increase is $7.49 million dollars, while the justified $1.85 million dollars. The $1.85 million would only be, my quick amateur calculation, around 6.25%. That is an enormous difference between of what Liberty Utilities asked for and what they can justify. *** dollar numbers are from the handout at the hearing | ||
| Jul 29, 2024 | 8:40 pm | |
|
|
||
| Sheryl Warnock | Apple Valley, CA | 92307 |
| After reading posted comments, I believe if these rate hikes go through, we as Liberty customers need to SUBTRACT any charges that are not ours to pay: such as retirement salaries, property taxes, and equipment depreciation. OR, we can just start sending Liberty a bill to pay our retirement and property taxes! NO RATE HIKES! Live within your means! I hope you get the message | ||
| Jul 29, 2024 | 7:16 pm | |
|
|
||
| Sheryl Warnock | Apple Valley, CA | 92307 |
| My name is Sheryl Warnock, and I strongly disapprove your proposed rate hike. Since when is it your customers responsibility to pay Liberty's property taxes and depression on equipment? You want us to pay those and then Liberty can turn around and use those as tax write offs! A win, win for Liberty by double dipping, and a screw, screw for us as your customers! Pay your own property taxes out of your own pockets like your customers do! | ||
| Jul 29, 2024 | 6:56 pm | |
|
|
||
| Jeremiah Gesner | Apple Valley, CA | 92307 |
| My name is Jeremiah Gesner and I strongly oppose the rate increase, I have been a resident of Apple Valley for twenty years. At my previous residence in Apple Valley I was on the east side of central road and my water company was Golden State water, when I purchased my current residence at the top of Corwin in Apple Valley my water service changed to Liberty Utilities and quadrupled in cost, the main cost that I pay is in service fees which have gradually increased over the last five years since the purchase of my home to the point where I contacted Liberty Utilities to find out why I was paying $177 service fee when the schedule states that the fee should be $93.38 for a one inch service line. The customer service representative basically told me thats just what they charge for my service and was rather rude about it to the point where I had to file a CPUC complaint against Liberty utilities (File#632990). I have since had to contact the customer service department because I am still receiving excessive bills in amounts that I cannot afford, Liberty Utilities has been stealing from the people of the town of Apple Valley for years and needs to be held accountable for their excessive fees. Liberty Utilities is the highest priced water district in the high desert and has no better-quality water then anyone else and in all reality has very poor customer service that lies to the customers about billing. Liberty Utilities does not provide affordable service to the people of the town of Apple Valley. | ||
| Jul 29, 2024 | 5:54 pm | |
|
|
||
| Chris Kopcsak | Apple Valley, CA | 92308 |
| It is not in the Public’s best interest to continually allow Liberty Utilities to increase revenues and therefore net profits by increasing water rates and service charges solely to benefit their employees and stock holders. Why a private company is granted access to our water resources without accountability to their consumers (residents) defies logic. The CPUC needs to step up and tell Liberty NO to a rate increase and to live within their means. Points to consider: 1) Liberty’s rates, even before the requested increase, are almost double that of the surrounding water districts that incur similar overhead, maintenance and production costs. 2) My effective water rate (total bill / actual usage) has more than doubled in the last four years. As others have referenced, as we use less water, we pay a higher effective rate for the water that do we use. 3) Almost 16% of Apple Valley’s population are seniors who depend on some form of fixed or investment income, which definitely is not growing at the requested increase of 22.6%. 4) Within the adjacent 55+ communities (Jess Ranch & Solara) which total over 3,200 residences, our seniors not only directly pay the increase in water rates but also indirectly pay for water used to maintain their common areas which affects their quality of life. In summary, regardless of how Liberty tries to justify this magnitude of rate increase it fails the stink test. Higher rates hurt the seniors and the business of the Town of Apple Valley and make it a less desirable place to live or do business. | ||
| Jul 13, 2024 | 10:21 am | |
|
|
||
| R Jones | Apple Valley, CA | 92308 |
| I strongly oppose this rate increase. Years ago we were told to conserve water. When we did, Liberty Utilities raised the rates because they didn’t make enough money due to our conservation efforts, they recommended. We already pay the highest rate on water and because they monopolize the water source, we can’t turn anywhere but the CPUC to help reign in this exorbitant rate hike. | ||
| Jul 13, 2024 | 8:04 am | |
|
|
||
| Ronald Baldwin | Apple Valley, CA | 92308 |
| Apple Valley water is the most expensive and worst tasting in the High Desert. You project increases far greater that those of surrounding water districts and the infrastructure is not improved significantly. You beg for reductions in usage and the bill keeps going up. The management is corrupt. | ||
| Jul 11, 2024 | 9:55 am | |
|
|
||
| Joelle Wheeler | APPLE VALLEY, CA | 92307 |
| Liberty charges the highest rates in California. Our surrounding cities of Victorville and Hesperia, the rates are not this high! I do not support increasing the rates. NO to Increasing rates. | ||
| Jul 11, 2024 | 9:53 am | |
|
|
||
| Julie Filamore-Angel | Apple Valley, CA | 92307 |
| The charges are already extremely high for us and other customers to pay, they are way higher than other cities in California, please do not increase charges for this will cause a grave hardship for everyone living pay stub to paystub and especially those on a fixed income . In addition, you installed a digital meter and we have no way to turn off the water in case of emergency, please provide us access to turn off the water in case of an emergency. Thank you. | ||
| Jul 10, 2024 | 3:01 pm | |
|
|
||
| Christopher Reay | Apple Valley, CA | 92308 |
| Yet another huge increase request from Liberty! The water rate and outrageous surcharges are killing the over-55 communities in Apple Valley. We are held hostage by having no choice but to get water from Liberty. Please stop this madness! | ||
| Jul 10, 2024 | 2:34 pm | |
|
|
||
| Joshua Tate | Apple Valley, CA | 92307 |
| Liberty Utilities service charges are extremely high, and always significantly more than than charges for actual water usage. (Pretty standard personal bill is $190 with only $30 to $40 being actual water use charges). Whether intended or not, the current rate increase proposal notices first show a small decrease in service charges depending on your meter size before reading further and seeing the extreme price increase for actual water usage. I do not support any rate increases in water usage but would support the decrease in service charges as these make up a majority of my bill. | ||
| Jul 10, 2024 | 12:48 pm | |
|
|
||
| Dean Scally | Apple Valley, CA | 92308 |
| We are a resident of A.V. EVERY SINGLE year Liberty proposes rate increases. They do this not out of need but because they know many wont show up or express there feelings against the monopolization of our water supply and get away with it. The delivery system is the same yes it needs upgrades but that should be LW investment from there profits not cost past down to the tax payer. Why are we paying for LW employee retirements? No were else does the customer pay for employees retirement either the employee or employer pays. Don't believe me take the time to read your water bill. Many of LW customers don't even have a cushy retirement except SS.I for one am tired entitled city, county, state and federal employees thinking they deserve more than the person employed in the real world. Also it should be noted all the illegitament tax imposed on our water bills, we pay almost equal to the water bill itself Why do we bring water in from over 400 miles away instead of drilling wells? Studies have shown 200 wells drilled in Yucaipa CA produced enough water to supply the entire SB county for 100's of years, yet the governor GN shut it down to protect LW monopoly on our water supply. NO MORE RATE INCREASES!!!!!!!!!!! | ||
| Jul 10, 2024 | 12:47 pm | |
|
|
||
| Lea Ann Ogden | Apple valley, CA | 92308 |
| I’m a Liberty customer and I oppose this rate increase. Liberty is already the highest cost water district in our area. They also make errors on their bills. Example: my previous bill was for 13 ccf and my current bill is for 52 ccf. Nothing changed and there are only two people living in the house. This increase in usage would mean we used an extra 470.52 gallons a day or 29,172 extra gallons in 62 days. If that was true there would be a sink hole in our yard. They also don’t reply when you apply for low income help. We’ve applied twice and never heard back on either one. It’s not fair that the share holders are the ones that want more profit for them. There is ZERO reason to approve this ridiculous increase at this time when things are already hard on senior citizens. Please don’t approve this increase as they don’t deserve it at all!! | ||
| Jul 10, 2024 | 12:22 pm | |
|
|
||
| Debera Lockridge | Yermo, CA | 92398 |
| I live in Yermo and my service charge is 4 times more than my actual water bill. I use no more the 4 ccf of water every month and during the winter time it is 2 ccf. I live on a very limited income and cannot afford another increase of any type. I appreciate all the work they did when they took over the water company in Yermo but enough is enough in increases. I never even see anyone reading my meter and when I do see a truck or 2 they are just standing around talking. I believe that you are trying to increase the rates in order to make your shareholders richer and us little people poorer. Your company has all of us by the you know what. | ||
| Jul 10, 2024 | 10:23 am | |
|
|
||
| Ricardo Buenrostro | Apple Valley, CA | 92307 |
| I am a liberty customer and I can't understand the ridiculous rate increase. I have seen the other utilities (gas company, phone company) improving their inferstructure without passing expenses to their customers. I don't understand why is it that the customers that follow the rules and try to be considerate of the state drought situations be rewarded with higher rates. | ||
| Jul 07, 2024 | 7:30 pm | |
|
|
||
| Eunice Harris | Apple Valley, CA | 92308 |
| I am against any rate hike by Liberty Utilities. They are already the highest in the area and are not affordable at all. | ||
| Jul 07, 2024 | 5:59 pm | |
|
|
||
| John Cich | APPLE VALLEY, CA | 92307 |
| This application is by far the worst ever. Liberty water has not deserved the right to receive the rate increases in years past, much less now. The rates now are beyond what they should be and this request should be to lower current rates, we pay more in fees every year than should be allowed. The amount requested is abhorrent and should be disallowed immediately. Cost of living is out of control now, this is not out of control but obscene and not needed. Another boat or airplane in driveway. Inflation is killing this country; the consumer receives 3% increase cost of living, and liberty, 25%. This is not what should be happening. NO TO THIS INCREASE.. | ||
| Jul 05, 2024 | 10:10 am | |
|
|
||
| Thomas & Carol Pambianco | Apple Valley, CA | 92308 |
| We are adamantly opposed to the rate increases requested by Liberty Apple Valley over the next three years, 2025 to 2027 Their notice for Application A.24-01-003 indicated their proposed increases were to cover improvements to the water supply system, property taxes, pension and benefits, depreciation expenses, and corporate expenses. Increasing their rates so that their shareholders profit is not fair to consumers. The reduction in water meter service charge in 2025 is appreciated, but it doesn't make sense to lower rates one year to then raise rates the following two years to almost what we are currently paying. Increasing the rates for consumers using 0 to 6 Ccf to 58.35% is counterintuitive to the States continued water conservation efforts. Liberty should be supporting such efforts, not penalizing consumers who use less water. Less water usage would result in less revenue but would also reduce cost of operations. Our personal usage of just over 7.33 Ccf per month will increase our 2025 bimonthly cost by 25%, or nearly $17. Because we live in an HOA supplied by a gravity irrigation system, these rates are proposed to increase be nearly 25% over the three-year period. As HOA homeowners in Apple Valley, if approved, these proposed rate increases will impact nearly 1,700 homeowners directly three-fold. First, our individual homeowner rate will increase. Secondly, the cost to water our HOA common areas will increase nearly another 25%. Lastly, the 10-inch meter service charge, for which Liberty provides no services or maintenance is currently costing each homeowner approximately $2.56 a month. The HOA should not be paying this meter service charge because Liberty has no liability in maintaining these water lines. When all increases are combined, each individual homeowner cost along with the shared HOA costs would result in nearly a 50% increase over the proposed three-year rate schedule. Therefore, we request the CPUC deny or substantially reduce the requested rate increase and remove the meter service charge for systems such as ours that have no maintenance or repair liability by Liberty Apple Valley. | ||
| Apr 04, 2024 | 12:13 pm | |
|
|
||
| Frederico Milton | APPLE VALLEY, CA | 92307 |
| I am a customer and the proposed water rate increase by Liberty Utilities is exorbitant and lacks transparency. Doubling the rate without disclosing anticipated costs and office expenses, while already imposing additional monthly charges for projects and maintenance, appears unjustified and potentially exploitative. The absence of a proposed upgrade schedule and timeline raises concerns about the true intentions behind the substantial rate hike | ||
| Mar 23, 2024 | 8:28 am | |
|
|
||
| Greg Raven | Apple Valley, CA | 92307 |
| I support Liberty Utilities in their rate request. For years, they spent millions maintaining and improving our water system with no guarantee of being compensated. Liberty is a great company that provides great water and good service for the lowest price in our area. Liberty is exactly the type of company we should reward based on their years of good behavior. | ||
| Feb 22, 2024 | 2:31 pm | |
|
|
||
| Darroll batten | Apple Valley, CA | 92308 |
| Liberty utilities is asking for an increase of over 23% in the next 3 years. At this rate cost of water will almost double in the next 10 years. We need to reduce the cost, inflation is running rampant. Please bring this to an end. | ||
| Feb 22, 2024 | 9:36 am | |
|
|
||
| Laurajean Reams | Apple Valley, CA | 92308 |
| I am a customer of Liberty Apple Valley. I cannot afford this current rate increase. Since Covid in 2020 my bill has gone up $55+ in the winter months & summer is doubled for me to water 8 trees in my yard. no other landscaping. This is ridiculous. With my low income credit of $20 my bill is still $85. I have reduced my water to the bare minimum & i still have to pay $71 for a meter. Those meters of which I didn't request a new one, cost about $600 so why am i paying so much? Between the water, electric & gas bills, that is half of my social security paycheck!!! I cannot afford live in this state anymore but i cannot afford to move! These companies are taking advantage of us poor homeowners to fill their pockets. Why are we footing the bill of new meters when they will just keep charging us more $ even after the meters are paid for. No one has replaced the pipes in my neighborhood. they are 30+ years old. they don't replace unless they break, so why new meters & now more rate increases. I don't see any improvements that i am supposedly paying for. I cannot even drink the water cuz it makes me sick with all the bleach & chemicals they put in it so i have to pay for water delivery as well. Probably won't even matter cuz you don't live here & you always approve all the utility rate increases. You are a judge, you can afford your increases but we cannot. | ||
| Feb 13, 2024 | 4:17 pm | |
|
|
||
(Other comments can be found on the CPUC web pages related to this proceeding.)