KHTS Radio Santa Clarita Radio – Santa Clarita News
Valencia Water Company officials proposed rate modifications and a general increase in rates for water service recently, prompting protests from residents in light of ongoing conservation efforts.
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“We have received verbal and written protests,” confirmed Ken Petersen, general manager for Valencia Water Company.
The revenue adjustment surcharge increase is intended to recover more than $5 million is lost revenue due to declining water sales.
“The surcharge will recover the 20-30 percent less water sales from customers conserving,” said Peterson. “We do not have reserves to fill in that deficit.”
Related: Watering Schedule In Santa Clarita To Remain Unchanged During Spring Season
Valencia Water Company has historically purchased approximately 50 percent of its water needs from Castaic Lake Water Agency, while the other 50 percent comes from groundwater, said Peterson.
However, due to the current statewide drought, Valencia Water Company anticipates it will have purchased only 35 percent of its total water demand during 2015, and 65 percent will be ground water.
Get live news updates about Santa Clarita by following KHTS on Facebook and KHTS on TwitterPeterson anticipates that the company will resume purchasing 50 percent of its water from CLWA in years 2016 and 2017.
Around 117,000 customers through approximately 31,000 service connections would be impacted by the proposed rate change– most of which are residential homes, but also include commercial, industrial, public authority, irrigation, construction, recycled and private fire customers.
Valencia Water Company board members are expected to discuss the proposal at their June 2 meeting, and may take action the same day.
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Why not expand your customer base– agua dulce and a few other areas on well systems may be interested in vesting into the system to increase revenue rather than raising rates for current customers for doing the right thing and conserving!!!! There has to be a better way to do this!! Well water is drying up in unincorporated rural areas and they will eventually need to “hook up” to the system anyway— just a thought!
So let me see if I have this straight….we are required to conserve water, we comply and now we must pay higher water rates for less water and all b/c VWC is losing sales on the water conserved? And don’t get me started on how VWC ‘magically’ discovered that they have enough water to supply the thousands of new homes being built on the 126. All of this equals taking advantage of the customers b/c of deep pockets that are feeling a little lighter than they want to be.
Before increasing rates what cost cutting has VWC completed. Secondly, when I was working on business and or company had bad years, there were no raises or bonuses.
I know why water utilities raising rates during droughts when we use less water really compels folks to get their pitchforks and torches. It seems illogical on the surface. The fact is that much of what we are paying for in the rate is for the infrastructure to get the water to our doorstep. The fixed cost of that infrastructure does not go away. I don’t know all the numbers relating to our water agency but it is an economic fact that rates must go up when we conserve during a drought if we expect the utility to keep delivering water.
I go without air conditioning and us fans in the summer to keep electricity bills down…to no avail.
I go without heating until I almost freeze and then turn it on, to keep gas bill down…to no avail.
I tried to conserve on water even before this, to keep my water bill down…to no avail.
Now I am supposed to sacrifice more for less. As a senior on a limited income I am expected to live on less and less while the water people want me to pay more and more. WHEN WILL IT END?????
How could they not have only expected this when everyone has been asked to cut back by 25% or more for the last two years. Why didn’t an f this in their budget or re they so busy funding Newhall Land’s proposed 30,000 units that they weren’t watching?
It would probably help if Valencia wasn’t illegally acquired by Castaic Lae Water Agency. Now they must pay for attorneys fees to defend their illegal actions. And that’s not all. The Valencia customers must pay dividends to Castaic Lake Water Agency because Castaic illegally acquired their stock (public agencies aren’t supposed to own stock). So why doesn’t CLWA just give the Valencia Water Co it owns a break and forgo dividends this year. Is anyone asking this?
BTW Valencia claims they are not public and don’t have to hold meetings or publish agendas or respond to public record act requests. Pretty outrageous. Someone should just try to form a public water company in this area. It is legally possible.
And last – you think its bad now, everyone should be opposing this propose mega merger. Wait until we have a water monopoly in this valley and see what happens to your rates.
The rate hearing is June 2nd The public meeting will be held at 6:00 pm
at Valencia High School Multi-Purpose Room, 27801 N. Dickason Drive, Valencia, California
Valencia Water was making plenty of money when they were purchased by CLWA according to the balance sheets. What Newhall Land/Lennar got from that deal was an extra $73 million (that’s what CLWA paid Newhall Land for Valencia Water Co.) to make ther 4th qtr balance sheets look better. It seems Lennar is in trouble once again. Remember that 2007 fiasco when Lennar (Landsource – Newhall Ranch) borrowed 1 billion from CalPers and then declared bankruptcy. It was the largest loss ever for CalPers and we taxpayers all paid in through higher contribution requirements. Then Lennar bought back in for pennies on the dollar. Just google it. The whole sad story should come up for you in the Sacramento Bee. Someone should be investigating CLWA as well.
We are damn if we waste water and damn if we save water. The DWP pulled this stunt 30 yrs ago when I lived in LA
I seem to recall that Valencia Water Co. customers had the lowest rates in the valley. Guess they’re all coming up to us in Newhall now ;-(
Incidentally, our water bills are still running $90-$100 a month, even though we are within our “conservation budget.” We had a $451 natural gas bill in January, which really frosted me, since we keep our thermostat turned to 67 or 68 degrees and just pile on sweaters when we get cold. I wouldn’t mind the high bills so much if that was the cost of being comfortable! Did the rates go up, or did we just have an unusually cold January?
Not surprised. That’s how it always is with things you do without. Conserve and save but, when they don’t have enough money for company cars, gasoline, raises and pensions then rates are hiked up or there is a BOND measure created for the HOMEOWNERS to pay attached to their property taxes.