Water Utilities Update Low-Income Oversight Board Water Division

Water Utilities Update Low-Income Oversight Board Water Division

Water Utilities Update Low-Income Oversight Board Water Division June 24, 2019 2 Topics Low-Income OIR Workshop School Lead Testing Conservation Drinking Water Fund Acquisitions Human Right to Water Report 3 Water Low-Income OIR R.17-06-024 Workshop held on May 2nd Water Rate Design for a Basic Amount of Water at a Low Quantity Rate Determining and establishing basic quantity Affordable = no tradeoffs of basic needs Adjustments to rate design Marginal-Cost Pricing

Shift more revenues to fixed charges Account for conservation Consider multi-family 4 School Lead Testing Assembly Bill 746 92% 1,323 Schools Tested B 492 exempted IOUs serve 1,963 Schools 19 over limit (1.0%) - Corrective actions taken Statewide (as of Mar 2019) Deadline July 1, 2019 13,500 schools 8,423 tested/exempted (62%) 243 over limit (1.8%)

W a t e r P r o d u c ti o n ( b i l l i o n g a l l o n s ) Water Conservation & Production Reports 40 2 0 1 3 35 30 25 20 2013 Baseline 15 10 5 0 Jan Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec IOUs Statewide 21.4% savings since Jun15 257 billion gallons total 18.6% savings since Jun15 1.77 trillion gallons total 6 Funding for Safe and Affordable Water Gov. Gavin Newsom $0.95 fee on water bills SB 200 (Monning) - SB 669 (Caballero) - Surplus from General Fund

$150M from General Fund AB 217 (Garcia) - $0.50 fee per connection Conference Compromise This budget year: $130M $100M from Greenhouse Gas Reduction Fund (GGRF) Cap-and-trade program $30M from General Fund Additional $3.4M to SWRCB for administrative costs Future years until 2030 5% from GGRF Cap of $130M If under cap, General Fund will fill the rest starting 2023 7 Acquisitions of Smaller Water Systems Benefits of Consolidation Economies of Scope and Scale

Technical, Managerial, and Financial (TMF) Capability Unaffordable for disadvantaged communities Streamline Operations Majority of troubled water systems serve less than 500 people Maintenance and infrastructure costs are rising Access to Low-Income Programs Statewide Policies SB 88 (2015): consolidation authority to SWRCB SB 552 (2016): TMF help for failing water systems SB 1263 (2016): prohibits creation of new small water systems CPUC continues active consolidation 8

Water IOUs Acquisitions of Water IOUs Class A: 9 Class B: 5 Class C: 20 Class D: 62 140 134 13; 130 130 12; 125 11; 124 10; 123 9; 123 120 8; 116 7; 115 6; 111 110 5; 107 4; 103 3; 101

2; 98 100 96 90 80 14 13 11 10 9 8 7 6 5 4 3 2

39 acquisitions of water IOUs since 2007 2 so far in 2019: Rio Plaza by Cal-Am & Mesa-Crest by Park (Liberty) 12 Also 1 acquisition of municipal (Rolling Hills) 1 new water IOU created in 2016 (Sierra Park) 5 pending acquisitions 3 IOUs: Fruitridge Vista by Cal-Am, Hillview by Cal-Am, & Hat Creek by Del Oro 2 Municipals: Perris by Park (Liberty) & Bellflower by Cal-Am 1 9 Human Right to Water Report Office of Environmental Health Hazard Assessment Develop framework for evaluating water quality, accessibility, and affordability Meet the goals of AB 685 (2012) Human Right to Water Draft report released on Jan 3rd

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