News
TAHOMA, Calif. — In a bid to keep water rates on par with costs, one West Shore water company has proposed a 77 percent rate increase.
The shocking part? Customers apparently couldn't be more understanding.
Tahoe Cedars Water Company, which distributes to West Shore residents around Tahoma, has proposed to raise its flat water utility rate to $503.20 per year, up from the current annual rate of $284.36. It would be the first rate raise in 16 years.
Meeks Bay Fire Protection District board member Ed Miller, a customer of Tahoe Cedars Water Company, said that during the company's informational meeting last month, his observation was most customers in attendance were concerned, but understanding.
“There were people who were concerned it was such a big increase, but once they were educated about it, they didn't seem to have a problem with it,” Miller said.
Derek Taylor, president of the Tahoe Cedars Property Owners Association, said he believes residents share a reluctant acceptance of the new rate hikes.
“I think that certainly everyone who attended the informational meeting understands the need for the increase,” he said.
Taylor said he felt the water company's decision, though dramatic, would affect its 1,164 customers in a positive way with necessary equipment to preserve the companies high standard of water quality.
According to the informational meeting, Taylor said he expects the California Public Utilities Commission, the governing state utilities agency, to make a decision by early July on approval of the rate.
Amie Haskill, public relations director of the family run business, said the hike is due for badly needed maintenance upgrades and to conform with Tahoe Regional Planning Agency, state and county regulations.
“We requested a big jump because we're so far behind everyone else,” Haskill said, referring to other utility providers in the area.
Haskill said her father, Earl Haskill, who bought the company in 1963, had held back general water rate increases for a long time by keeping aging equipment in use. Now, because of a larger customer base, larger homes and bevy of regulatory requirements, she said it is not longer possible to maintain the current rate.
According to an informational flier distributed to residents, if the water company would have maintained its current rates, it would have lost more than $75,000 in net revenue by the end of the 2010 fiscal year. Under the new rate structure, Tahoe Cedars estimates it will make $125,128 in net revenue.
Cindy Gustafson, general manager at the nearby Tahoe City Public Utility District, supports the increase, describing it as a necessary cost upgrade.
“They have had the lowest water rates around for many years,” Gustafson said. “When you see the percentage, it looks significant, but when you compare them with local agencies I think it's very reasonable.”
Haskill said she is uncertain whether the utilities commission will grant the increase immediately. Haskill said she expects the increased rate will come in stages, which could mean maintenance purchases and upgrades will also be bought in stages.
The shocking part? Customers apparently couldn't be more understanding.
Tahoe Cedars Water Company, which distributes to West Shore residents around Tahoma, has proposed to raise its flat water utility rate to $503.20 per year, up from the current annual rate of $284.36. It would be the first rate raise in 16 years.
Meeks Bay Fire Protection District board member Ed Miller, a customer of Tahoe Cedars Water Company, said that during the company's informational meeting last month, his observation was most customers in attendance were concerned, but understanding.
“There were people who were concerned it was such a big increase, but once they were educated about it, they didn't seem to have a problem with it,” Miller said.
Derek Taylor, president of the Tahoe Cedars Property Owners Association, said he believes residents share a reluctant acceptance of the new rate hikes.
“I think that certainly everyone who attended the informational meeting understands the need for the increase,” he said.
Taylor said he felt the water company's decision, though dramatic, would affect its 1,164 customers in a positive way with necessary equipment to preserve the companies high standard of water quality.
According to the informational meeting, Taylor said he expects the California Public Utilities Commission, the governing state utilities agency, to make a decision by early July on approval of the rate.
Amie Haskill, public relations director of the family run business, said the hike is due for badly needed maintenance upgrades and to conform with Tahoe Regional Planning Agency, state and county regulations.
“We requested a big jump because we're so far behind everyone else,” Haskill said, referring to other utility providers in the area.
Haskill said her father, Earl Haskill, who bought the company in 1963, had held back general water rate increases for a long time by keeping aging equipment in use. Now, because of a larger customer base, larger homes and bevy of regulatory requirements, she said it is not longer possible to maintain the current rate.
According to an informational flier distributed to residents, if the water company would have maintained its current rates, it would have lost more than $75,000 in net revenue by the end of the 2010 fiscal year. Under the new rate structure, Tahoe Cedars estimates it will make $125,128 in net revenue.
Cindy Gustafson, general manager at the nearby Tahoe City Public Utility District, supports the increase, describing it as a necessary cost upgrade.
“They have had the lowest water rates around for many years,” Gustafson said. “When you see the percentage, it looks significant, but when you compare them with local agencies I think it's very reasonable.”
Haskill said she is uncertain whether the utilities commission will grant the increase immediately. Haskill said she expects the increased rate will come in stages, which could mean maintenance purchases and upgrades will also be bought in stages.
