Central Coast News KION/KCBASpreckels Water Co. asks for 252% water rate increase

SPRECKELS, Calif. -- For the first time since 1993, Spreckels residents could be asked to pay more for water.

The Spreckels Water Company, which is owned by the grower-shipper company Tanimura & Antle, is asking the California Public Utilities Commission (PUC) for a 252% rate increase.

Spreckels Water Company Vice President of Business Affairs Kerry Varney said while the increase may sound excessive, residents have been paying a flat fee for at least 18 years.  David Rader, who is the caretaker of the Spreckels Memorial Park, said most residents pay roughly $21 a month.  Some in newer homes said they typically pay more, around $50.

In a notice sent to customers, the Spreckels Water Company said it had "invested more than $630,000 to improve and repair its water system and expects to invest an additional $540,000 for needed improvements during the remainder of 2011."  It said the rate increase is necessary to offset growing operating expenses, as it attempts to modernize its water delivery system.

The Spreckels Water Company said it did not ask for the maximum rate increase allowed by the PUC.  Instead, it has attempted to match water rates and service charges paid by customers in the Salinas area.

In addition to the rate increase, the company is asking the PUC to change the way it charges customers for water consumption.  Residents said water meters were installed last winter, though they are still charged a flat fee.

The Spreckels Water Company said it wants to discontinue its flat rates and replace it with two rate schedules: an increasing tier-rate structure based on metered water consumption for residential customers, and a single, metered rate for non-residential customers.

The PUC is hosting a public meeting on Monday, October 3 at 6:00 p.m. at the Spreckels Veterans Memorial Building.  Varney said officials will discuss the improvements made to the system and receive public input on the proposed rate increase.