WEBVTT
00:02:33.860 --> 00:02:35.690
So we're at one o'clock.
00:02:35.690 --> 00:02:38.440
I think we'll hang on to get
started for a few more minutes
00:02:38.440 --> 00:02:41.800
to let some more people trickle in.
00:02:41.800 --> 00:02:44.820
We do have, I believe, a virtual poll
00:02:44.820 --> 00:02:46.360
that we can get started
00:02:46.360 --> 00:02:48.830
to identify what your background is,
00:02:48.830 --> 00:02:52.210
CPUC staff, other state agencies,
00:02:52.210 --> 00:02:54.240
advocacy organizations and so on,
00:02:54.240 --> 00:02:56.850
but please fill out the
poll when you are able
00:02:56.850 --> 00:02:58.550
and we'll get started in a minute.
00:04:01.070 --> 00:04:01.903
Jeff and Steve,
00:04:01.903 --> 00:04:03.810
I am going to be eating a little lunch,
00:04:03.810 --> 00:04:05.390
so I'm gonna go off
camera for a little bit,
00:04:05.390 --> 00:04:06.930
but I am here, I promise.
00:05:40.320 --> 00:05:42.320
It's a few minutes after one.
00:05:42.320 --> 00:05:44.780
We've got, I think, a couple
of people still trickling in,
00:05:44.780 --> 00:05:46.020
but we've got a pretty good crowd,
00:05:46.020 --> 00:05:49.170
so we can get started, I think,
00:05:49.170 --> 00:05:52.183
by starting to talk about
the goal of the session.
00:05:53.030 --> 00:05:54.310
Again, thanks, everyone, for joining.
00:05:54.310 --> 00:05:55.720
This is the water breakout session
00:05:55.720 --> 00:06:00.033
for the environmental and
social justice plan workshop.
00:06:00.930 --> 00:06:02.600
We have a virtual poll going
00:06:02.600 --> 00:06:05.480
to get a count of what
folks' backgrounds are,
00:06:05.480 --> 00:06:06.680
so please fill that out,
00:06:07.960 --> 00:06:08.850
but getting started,
00:06:08.850 --> 00:06:10.300
just talking about why we're all here
00:06:10.300 --> 00:06:11.250
in this breakout session
00:06:11.250 --> 00:06:13.660
is to get some potential
new action items
00:06:13.660 --> 00:06:15.460
for the ESJ Action Plan update
00:06:15.460 --> 00:06:17.480
specifically related to water.
00:06:17.480 --> 00:06:19.750
As you have probably heard
over the past couple of days,
00:06:19.750 --> 00:06:23.220
the ESJ Action Plan outlines steps
00:06:23.220 --> 00:06:25.180
the CPUC intends to take
00:06:25.180 --> 00:06:28.500
to further principles of
environmental and social justice.
00:06:28.500 --> 00:06:31.590
It is centered on nine goals primarily,
00:06:31.590 --> 00:06:34.660
like incorporating equity
into decision-making,
00:06:34.660 --> 00:06:37.210
increasing access to
programs and services,
00:06:37.210 --> 00:06:39.050
promoting workforce
development opportunities
00:06:39.050 --> 00:06:41.763
and ways to participate
in CPUC processes.
00:06:43.310 --> 00:06:46.938
Again, that's the backdrop of
what we're talking about here,
00:06:46.938 --> 00:06:49.603
and a few just general
comments before we start.
00:06:50.690 --> 00:06:52.640
We are hoping to make
this breakout session
00:06:52.640 --> 00:06:55.150
as much of an interactive
discussion as possible,
00:06:55.150 --> 00:06:57.890
so there are a few
ways you can participate.
00:06:57.890 --> 00:07:01.000
To give a verbal
comment or ask a question,
00:07:01.000 --> 00:07:02.500
open the participants list
00:07:02.500 --> 00:07:05.000
in the bottom right of this window
00:07:06.240 --> 00:07:07.930
and click the hand next to your name.
00:07:07.930 --> 00:07:09.380
That will raise your hand
00:07:09.380 --> 00:07:13.530
and let the event host know
that you're wanting to speak.
00:07:13.530 --> 00:07:15.440
Someone will call on
you and then unmute you
00:07:15.440 --> 00:07:19.440
when it's your turn to say your comment.
00:07:19.440 --> 00:07:21.440
Please keep in mind that
we might not get to everyone,
00:07:21.440 --> 00:07:23.560
but we will do our best to
get to as many comments
00:07:23.560 --> 00:07:26.420
and questions into the
discussion as possible.
00:07:26.420 --> 00:07:28.370
If you would like to make a
written comment or question,
00:07:28.370 --> 00:07:29.203
not out loud,
00:07:30.210 --> 00:07:32.220
you can type your
comment into the chat box,
00:07:32.220 --> 00:07:35.800
also found at the lower
right-hand side of the screen,
00:07:35.800 --> 00:07:39.240
and make sure you send
that question to all participants
00:07:39.240 --> 00:07:40.470
so that everyone in the discussion
00:07:40.470 --> 00:07:42.453
can see what your question is.
00:07:43.500 --> 00:07:47.790
We have this ESJ Action Plan's
mastermind, Monica Palmiera,
00:07:47.790 --> 00:07:51.900
on the line as our
summarizer and chat monitor.
00:07:51.900 --> 00:07:53.980
We'll be trying to weave
as much content as we can
00:07:53.980 --> 00:07:56.620
from the chat box into the discussion.
00:07:56.620 --> 00:07:59.120
Even if we can't bring
your comment into the chat,
00:07:59.980 --> 00:08:01.450
the chat will be saved
00:08:01.450 --> 00:08:04.020
and we'll have that feedback recorded.
00:08:04.020 --> 00:08:07.060
Lastly, if you'd like to submit
your comments via email,
00:08:07.060 --> 00:08:08.350
if you'd like to further elaborate
00:08:08.350 --> 00:08:09.800
on anything that was said or,
00:08:10.670 --> 00:08:11.610
we'll try to get through everyone,
00:08:11.610 --> 00:08:13.310
but in case we don't get to you,
00:08:13.310 --> 00:08:14.290
you can email your thoughts
00:08:14.290 --> 00:08:18.680
to the esjactionplan@cpuc.ca.gov
00:08:18.680 --> 00:08:21.470
and that email will be
found in the chat as well,
00:08:21.470 --> 00:08:23.913
so you can have it there.
00:08:24.910 --> 00:08:26.870
And lastly, before we start,
00:08:26.870 --> 00:08:28.570
this session is being recorded
00:08:28.570 --> 00:08:30.820
so we can save all the
feedback and comments.
00:08:32.290 --> 00:08:36.100
I think with that,
we have our poll in,
00:08:36.100 --> 00:08:38.210
we've got 49 participants,
00:08:38.210 --> 00:08:39.630
so I think I'll hand it over to Steve
00:08:39.630 --> 00:08:41.023
for some opening framing.
00:08:46.090 --> 00:08:46.970
And thank you.
00:08:46.970 --> 00:08:48.590
My name is Steve St. Marie.
00:08:48.590 --> 00:08:51.840
I work in the Water
Division along with Jefferson
00:08:51.840 --> 00:08:55.263
and we are happy to be here today.
00:08:56.586 --> 00:09:00.060
I would like to share a little
bit of information with you
00:09:02.590 --> 00:09:07.130
to indicate the kind of work
that we have been looking at
00:09:07.130 --> 00:09:10.210
in the kind of information
we have been looking at
00:09:10.210 --> 00:09:11.380
in the Water Division
00:09:11.380 --> 00:09:15.430
having to do with the
low-income water proceeding
00:09:16.270 --> 00:09:19.610
that is ongoing at the CPUC,
00:09:19.610 --> 00:09:22.230
and so I'm sharing my screen.
00:09:22.230 --> 00:09:23.883
I hope everyone can see that.
00:09:24.730 --> 00:09:25.563
Okay.
00:09:26.950 --> 00:09:30.710
I would like to just, this
is not detailed information,
00:09:30.710 --> 00:09:33.410
but we'll do a quick snapshot.
00:09:33.410 --> 00:09:37.360
Recently, we have found
that the most recent data
00:09:37.360 --> 00:09:41.270
that we have up-to-date
is from November last year
00:09:41.270 --> 00:09:45.920
and it seems as though the
total number of customers
00:09:45.920 --> 00:09:49.940
of the Class A water utilities
who are late on their bills
00:09:49.940 --> 00:09:52.900
is about 230,000
00:09:52.900 --> 00:09:57.900
out of a little over 1.2
million customers in total,
00:09:59.060 --> 00:10:04.563
and my screen is, here we go,
00:10:05.950 --> 00:10:09.590
and we found that over a
quarter of those customers,
00:10:09.590 --> 00:10:12.290
about 27% in November,
00:10:12.290 --> 00:10:16.000
were residential customers
on the CAP programs.
00:10:16.000 --> 00:10:18.970
That is the Customer
Assistance Programs.
00:10:18.970 --> 00:10:20.010
That's a new name.
00:10:20.010 --> 00:10:24.020
Some of you may know those
names of those programs as LIRA,
00:10:24.020 --> 00:10:26.970
the Low-Income Rate Assistance programs.
00:10:26.970 --> 00:10:29.600
They're similar to the CARE programs
00:10:29.600 --> 00:10:31.943
that the energy customers have.
00:10:35.410 --> 00:10:36.620
Looking very quickly,
00:10:36.620 --> 00:10:42.570
the average residential
arrearage is up about 55%
00:10:42.570 --> 00:10:44.950
compared to the same period
00:10:46.634 --> 00:10:48.250
in 2019.
00:10:48.250 --> 00:10:51.770
It used to be about $135 on average
00:10:51.770 --> 00:10:54.430
among those who were
behind on their bills.
00:10:54.430 --> 00:10:56.193
Now it's 208.
00:10:57.330 --> 00:10:59.750
We could discuss the subtlety of that,
00:10:59.750 --> 00:11:02.977
but basically, among the
people who are behind,
00:11:02.977 --> 00:11:05.743
$208 is probably a lot of money.
00:11:06.790 --> 00:11:10.230
The average non-residential
arrearage is up
00:11:10.230 --> 00:11:12.583
but not up by quite as much.
00:11:13.700 --> 00:11:15.870
Before, last year,
00:11:15.870 --> 00:11:19.040
in September to
November it was about 640
00:11:19.040 --> 00:11:21.733
and now it's up to about 717.
00:11:23.460 --> 00:11:25.850
One last graph here.
00:11:25.850 --> 00:11:29.230
Residential arrearages are now totalling
00:11:29.230 --> 00:11:31.320
about $43 million
00:11:32.830 --> 00:11:36.763
and non-residential about $19 million.
00:11:37.830 --> 00:11:39.920
We're talking over $60 million
00:11:40.830 --> 00:11:44.250
that is owed by customers
00:11:44.250 --> 00:11:47.313
and on the utilities'
books at this time.
00:11:49.940 --> 00:11:52.130
That's all that we need to do right now
00:11:52.130 --> 00:11:54.003
and I will stop sharing.
00:11:57.580 --> 00:11:58.413
Okay.
00:12:00.970 --> 00:12:03.630
One of the questions that we
have been asked to address
00:12:03.630 --> 00:12:05.720
right from the beginning is
00:12:05.720 --> 00:12:09.270
what kinds of things
does the Water Division do
00:12:09.270 --> 00:12:11.490
in order to try to help
00:12:11.490 --> 00:12:14.130
low-income, disadvantaged communities
00:12:14.130 --> 00:12:16.430
or ESJ in general?
00:12:16.430 --> 00:12:18.820
And I would like to begin by saying
00:12:18.820 --> 00:12:23.460
the Water Division regulates
about 90 utility companies,
00:12:23.460 --> 00:12:25.460
most of which are small
00:12:25.460 --> 00:12:28.933
and many of which
serve in ESJ communities.
00:12:29.860 --> 00:12:32.140
Our work is to regulate them.
00:12:32.140 --> 00:12:34.633
We don't actually serve
the water, of course,
00:12:35.570 --> 00:12:37.470
but we make sure that the utilities
00:12:37.470 --> 00:12:39.370
provide adequate service
00:12:39.370 --> 00:12:41.590
and we work with other
agencies to make sure
00:12:41.590 --> 00:12:43.943
that the water quality
standards are met.
00:12:44.950 --> 00:12:48.430
We also have procedures
for dealing with the utilities
00:12:48.430 --> 00:12:50.350
that are failing to
meet the requirements
00:12:50.350 --> 00:12:51.403
that are necessary.
00:12:53.450 --> 00:12:57.320
Environmental and social
justice is promoted and benefited
00:12:57.320 --> 00:13:00.573
by CPUC regulation in general.
00:13:01.630 --> 00:13:05.270
The CPUC sets rates according to costs
00:13:05.270 --> 00:13:08.533
and costs are reviewed for
reasonableness and prudence.
00:13:12.290 --> 00:13:15.330
We have a universal service policy
00:13:15.330 --> 00:13:18.050
and it's unlikely that
everyone would even be able
00:13:18.050 --> 00:13:21.800
to get water were it not
for universal service rules
00:13:21.800 --> 00:13:23.533
that we help to enforce.
00:13:24.380 --> 00:13:27.220
Rates are set across whole service areas
00:13:27.220 --> 00:13:30.010
and they are not segregated by area
00:13:30.010 --> 00:13:33.860
or in terms or conditions
of where they are served,
00:13:33.860 --> 00:13:36.350
so people who are in town
00:13:36.350 --> 00:13:40.030
and people who are in the woods,
00:13:40.030 --> 00:13:41.930
if they are in the
same service territory,
00:13:41.930 --> 00:13:43.650
they are paying the same rates,
00:13:43.650 --> 00:13:45.160
though one could argue
00:13:45.160 --> 00:13:48.530
that the people who are out
in the less-developed areas
00:13:48.530 --> 00:13:50.720
or the less-congested areas
00:13:50.720 --> 00:13:53.060
perhaps are more costly to serve
00:13:53.060 --> 00:13:56.300
and if we weren't
dealing with regulation,
00:13:56.300 --> 00:13:58.470
perhaps would not be receiving service
00:13:58.470 --> 00:14:01.223
or would be receiving
service at a different cost.
00:14:02.640 --> 00:14:05.963
The Class A water utilities
have low-income programs.
00:14:07.080 --> 00:14:09.080
We do not have those at this time
00:14:09.080 --> 00:14:11.610
for the very small water companies,
00:14:11.610 --> 00:14:14.083
the ones with fewer than 500 customers.
00:14:16.460 --> 00:14:20.330
We do some other things
that help to facilitate ESJ
00:14:20.330 --> 00:14:22.220
and that includes facilitating
00:14:22.220 --> 00:14:24.700
acquisitions and consolidations
00:14:24.700 --> 00:14:26.720
that may benefit the customers
00:14:26.720 --> 00:14:29.943
of small and
undercapitalized water utilities,
00:14:31.290 --> 00:14:34.370
and we're participating
in two proceedings
00:14:34.370 --> 00:14:36.260
that are ESJ related,
00:14:36.260 --> 00:14:39.020
and I'm speaking now
about the one called
00:14:39.020 --> 00:14:41.860
the low-income water utility
00:14:41.860 --> 00:14:46.730
low-income water
proceeding, R.17-06-024,
00:14:46.730 --> 00:14:50.552
and that's the one that
is enforcing such rules as
00:14:50.552 --> 00:14:53.590
the shutdown moratorium,
00:14:53.590 --> 00:14:55.440
and we're working on other policies
00:14:55.440 --> 00:14:58.990
that the Commission may be developing
00:14:58.990 --> 00:15:00.763
in future orders.
00:15:03.640 --> 00:15:05.426
And here we go.
00:15:05.426 --> 00:15:07.630
That's the story of the kind of stuff
00:15:07.630 --> 00:15:09.320
that we are doing generally,
00:15:09.320 --> 00:15:11.180
and of course, we're always looking
00:15:11.180 --> 00:15:12.930
to find if there are better ways
00:15:12.930 --> 00:15:16.440
that we can serve all the
communities and the, especially,
00:15:16.440 --> 00:15:20.233
the environmental and
social justice communities.
00:15:26.180 --> 00:15:27.550
Thanks, Steve.
00:15:27.550 --> 00:15:29.340
One last thing I would mention
00:15:30.660 --> 00:15:32.800
in the context of
framing this discussion
00:15:32.800 --> 00:15:34.000
that we're about to have
00:15:34.970 --> 00:15:36.650
is something that has been
mentioned a couple of times
00:15:36.650 --> 00:15:37.483
in the last,
00:15:38.560 --> 00:15:39.670
over the course of this workshop,
00:15:39.670 --> 00:15:43.547
the affordability
proceeding R.18-07-006,
00:15:44.680 --> 00:15:48.953
where last year the
Commission in decision 20-07-032
00:15:50.420 --> 00:15:53.120
adopted a set of three
metrics to measure affordability
00:15:53.120 --> 00:15:56.113
across all of its regulated
industries, including water,
00:15:57.090 --> 00:15:59.010
and a staff report on affordability
00:15:59.010 --> 00:16:01.690
is due for release later this quarter.
00:16:01.690 --> 00:16:03.760
I mentioned it today so that later on
00:16:03.760 --> 00:16:06.080
we can continue discussing
00:16:07.060 --> 00:16:09.423
how it can best be applied
to ESJ communities.
00:16:10.870 --> 00:16:13.060
Some of these metrics that
the Commission has adopted
00:16:13.060 --> 00:16:15.003
look at things like CalEnviroScreen,
00:16:16.210 --> 00:16:18.400
rates, income levels,
00:16:18.400 --> 00:16:20.610
but the framework of how
best to apply those metrics
00:16:20.610 --> 00:16:23.223
is still underway in the
proceeding's second phase.
00:16:24.970 --> 00:16:27.450
Some of the preliminary
results that we're seeing
00:16:27.450 --> 00:16:28.340
is what you might expect.
00:16:28.340 --> 00:16:31.510
Some of these smaller communities
that Steve has mentioned
00:16:32.480 --> 00:16:33.690
are kind of doubly burdened
00:16:33.690 --> 00:16:35.970
by both some of the
highest water bills in the state
00:16:35.970 --> 00:16:37.820
as well as some of the lowest incomes
00:16:38.700 --> 00:16:41.710
combined with the lack
of assistance programs
00:16:41.710 --> 00:16:42.883
like the Class As have.
00:16:43.860 --> 00:16:48.190
Affordability affects customers
00:16:48.190 --> 00:16:49.640
from several different angles,
00:16:49.640 --> 00:16:51.840
so we are trying to
measure it the same way.
00:16:54.120 --> 00:16:56.420
And so I think that is
where we will leave off
00:16:57.480 --> 00:17:00.110
in the context of framing
the Water Division's role
00:17:01.220 --> 00:17:06.220
and water at the CPUC
in the context of ESJ,
00:17:06.290 --> 00:17:08.873
and I think we'll open
it up for discussion.
00:17:10.480 --> 00:17:12.810
Steve, do you want to
introduce this first question
00:17:12.810 --> 00:17:14.140
that we have?
00:17:14.140 --> 00:17:16.200
Well, sure. Oh, am I?
00:17:16.200 --> 00:17:17.473
I'm not muted. Okay.
00:17:19.930 --> 00:17:24.930
What does it mean that
California has legislated
00:17:24.990 --> 00:17:26.593
a human right to water?
00:17:28.050 --> 00:17:29.180
I actually have
00:17:31.780 --> 00:17:33.890
that law as it was written
00:17:33.890 --> 00:17:36.400
available for us to look at.
00:17:36.400 --> 00:17:37.793
It is here.
00:17:39.820 --> 00:17:45.650
Okay, and essentially,
just the very beginning,
00:17:45.650 --> 00:17:49.850
it is declared to be the
established policy of the state
00:17:49.850 --> 00:17:52.610
that every human being has the right
00:17:52.610 --> 00:17:56.280
to safe, clean, affordable
and accessible water
00:17:56.280 --> 00:17:58.340
adequate for human consumption,
00:17:58.340 --> 00:18:01.230
cooking and sanitary purposes,
00:18:01.230 --> 00:18:04.460
and the rest of this goes into
00:18:04.460 --> 00:18:07.520
what that is and what it means.
00:18:07.520 --> 00:18:11.960
Our question is what
does it mean to the CPUC
00:18:11.960 --> 00:18:16.080
and how can we make sure
that all people have access
00:18:16.080 --> 00:18:19.483
to safe, clean and affordable water?
00:18:27.040 --> 00:18:28.260
And Jeff and Steve, actually,
00:18:28.260 --> 00:18:30.160
maybe you could call on folks.
00:18:30.160 --> 00:18:31.330
Some folks have their hands raised.
00:18:31.330 --> 00:18:32.680
Just call on them and then folks can
00:18:32.680 --> 00:18:34.540
unmute themselves, actually.
00:18:34.540 --> 00:18:35.880
Sorry about that.
00:18:35.880 --> 00:18:38.033
Okay, now at this point,
00:18:39.370 --> 00:18:41.340
one of the things I
would really like to know
00:18:41.340 --> 00:18:43.750
is how do I put the people in order
00:18:43.750 --> 00:18:45.190
that they have their hand raised?
00:18:45.190 --> 00:18:47.610
Oh, I see. So Edward Simon here.
00:18:47.610 --> 00:18:48.753
Edward, could you speak?
00:18:48.753 --> 00:18:51.423
And you have to unmute yourself.
00:18:53.607 --> 00:18:55.660
Okay, can
you hear me okay now?
00:18:55.660 --> 00:18:56.870
Yes, we can.
00:18:56.870 --> 00:18:58.140
Okay, well, good afternoon.
00:18:58.140 --> 00:18:59.380
I'm Edward Simon.
00:18:59.380 --> 00:19:01.780
I'm the director of business performance
00:19:01.780 --> 00:19:05.707
and supplier diversity for
California American Water,
00:19:05.707 --> 00:19:08.570
and just recently named the chair
00:19:08.570 --> 00:19:10.750
of the California Water Association
00:19:10.750 --> 00:19:13.820
diversity, equity and
inclusion advisory board,
00:19:13.820 --> 00:19:18.310
so certainly great to be with
the team here this afternoon,
00:19:18.310 --> 00:19:19.560
and my question is,
00:19:19.560 --> 00:19:22.360
I understand that the Commission
00:19:22.360 --> 00:19:25.930
is engaging in some workforce
development programs
00:19:25.930 --> 00:19:28.750
and I think you formed an agreement
00:19:28.750 --> 00:19:32.760
with the state workforce
investment board.
00:19:32.760 --> 00:19:34.760
Can you share a little
bit more information
00:19:34.760 --> 00:19:36.710
about that partnership
00:19:36.710 --> 00:19:41.090
and how maybe CWA can
engage in these discussions,
00:19:41.090 --> 00:19:43.920
certainly to attract interest in
00:19:45.428 --> 00:19:47.023
diverse people working
in the water industry?
00:19:47.023 --> 00:19:49.557
Can you share a little
bit more about that?
00:19:50.430 --> 00:19:51.660
Sure. This is Monica.
00:19:51.660 --> 00:19:53.460
Jeff and Steve, I'll
take this one real quick,
00:19:53.460 --> 00:19:55.190
and we should talk more offline.
00:19:55.190 --> 00:19:56.690
It would be really, really helpful,
00:19:56.690 --> 00:19:57.840
but just briefly, yes,
00:19:57.840 --> 00:20:00.730
so one of the goals of this
action plan is to think about
00:20:00.730 --> 00:20:03.890
how we as the PUC
can promote opportunities
00:20:03.890 --> 00:20:05.230
for workforce development
00:20:06.140 --> 00:20:08.720
within our wherewithal,
within our jurisdiction.
00:20:08.720 --> 00:20:11.220
We obviously don't have
a lot of expertise on that.
00:20:11.220 --> 00:20:13.110
We entered into an MOU, yeah,
00:20:13.110 --> 00:20:15.540
with the California
Workforce Development Board
00:20:15.540 --> 00:20:17.530
to help us understand
00:20:17.530 --> 00:20:19.890
how we can use our
jurisdiction and authority
00:20:19.890 --> 00:20:21.213
to promote opportunities.
00:20:22.130 --> 00:20:24.210
What we've been doing,
we've just been getting started,
00:20:24.210 --> 00:20:26.320
so now is a good time to discuss.
00:20:26.320 --> 00:20:29.920
What we're doing right now
is looking at three programs,
00:20:29.920 --> 00:20:30.880
three program areas,
00:20:30.880 --> 00:20:33.760
energy efficiency,
vegetation management,
00:20:33.760 --> 00:20:36.100
and transportation electrification.
00:20:36.100 --> 00:20:37.430
Three program areas that have
00:20:37.430 --> 00:20:39.520
some workforce development components,
00:20:39.520 --> 00:20:42.870
understanding what we've
done thus far from the PUC side,
00:20:42.870 --> 00:20:45.500
and so develop some best practices
00:20:45.500 --> 00:20:47.240
that we have already done,
00:20:47.240 --> 00:20:48.680
can share cross-Commission,
00:20:48.680 --> 00:20:50.970
but then also think about how
we can maximize our impact
00:20:50.970 --> 00:20:52.070
in that space,
00:20:52.070 --> 00:20:54.150
and we've been learning a
lot through our partnership
00:20:54.150 --> 00:20:56.540
with the Workforce
Development Board about
00:20:56.540 --> 00:20:57.560
it's not just about training,
00:20:57.560 --> 00:21:00.020
it's about job placement, job quality,
00:21:00.020 --> 00:21:01.750
things like contractor standards.
00:21:01.750 --> 00:21:04.400
Those are the kinds of
things we will be exploring
00:21:04.400 --> 00:21:07.220
as we further implement the MOU.
00:21:07.220 --> 00:21:09.610
Yeah, happy to talk more
offline and engage on that,
00:21:09.610 --> 00:21:12.937
but that's generally where
we are with that item.
00:21:12.937 --> 00:21:14.095
Okay. Well, thank
you very much.
00:21:14.095 --> 00:21:16.520
I will tell you, I know
from a CWA perspective
00:21:16.520 --> 00:21:18.285
we certainly would be interested
00:21:18.285 --> 00:21:20.240
in engaging in those discussions
00:21:20.240 --> 00:21:22.010
and I know you've focused on the,
00:21:22.010 --> 00:21:25.420
you said the energy and
vegetation management and so forth,
00:21:25.420 --> 00:21:28.860
but would be nice to add, if we can,
00:21:28.860 --> 00:21:32.830
working for a water utility
in that focus area as well
00:21:32.830 --> 00:21:35.460
'cause we certainly can
use some assistance there.
00:21:35.460 --> 00:21:38.680
I will definitely follow
up with you after this.
00:21:39.515 --> 00:21:40.348
Thank you.
00:21:41.840 --> 00:21:43.340
Thank you very much, Edward.
00:21:44.240 --> 00:21:46.853
At this time, we do not
have any hands raised.
00:21:48.280 --> 00:21:50.750
I guess that means that maybe
00:21:50.750 --> 00:21:53.560
Jefferson should talk
about our next question
00:21:53.560 --> 00:21:56.310
and see if we get some more
excitement out of that one.
00:21:57.480 --> 00:21:59.860
Sure, so the next thing,
00:21:59.860 --> 00:22:02.860
as I kind of hinted at a minute ago,
00:22:02.860 --> 00:22:04.630
is this affordability rulemaking
00:22:04.630 --> 00:22:08.270
entering its second phase
00:22:08.270 --> 00:22:10.400
in which now we have these metrics,
00:22:10.400 --> 00:22:14.653
we are collecting a lot of
data related to affordability.
00:22:16.740 --> 00:22:20.933
How do we use that to best
impact ESJ communities?
00:22:22.000 --> 00:22:24.430
And I know a lot of these...
00:22:30.400 --> 00:22:32.250
The proceeding itself has garnered
00:22:32.250 --> 00:22:33.280
a lot of these discussions
00:22:33.280 --> 00:22:35.240
that will continue
through the second phase,
00:22:35.240 --> 00:22:38.720
but in the context of ESJ,
00:22:38.720 --> 00:22:41.810
I think there's a different
angle we can look at.
00:22:41.810 --> 00:22:43.660
Are there any thoughts on that topic?
00:22:51.650 --> 00:22:53.340
Okay, we have one raised hand
00:22:53.340 --> 00:22:55.763
and that is Willis Hon.
00:22:57.530 --> 00:22:59.450
Hey, Steve. This is Willis Hon.
00:22:59.450 --> 00:23:03.000
I'm an attorney with
Nossaman on behalf of CWA,
00:23:03.000 --> 00:23:05.100
and I did want to also tie this back
00:23:05.100 --> 00:23:08.230
to your first question about
the human right to water
00:23:08.230 --> 00:23:11.060
and also just the affordability metrics
00:23:11.060 --> 00:23:12.363
in the recent proceeding,
00:23:13.440 --> 00:23:15.440
and I wanted to tie it back
00:23:15.440 --> 00:23:17.530
through the stuff you opened up with,
00:23:17.530 --> 00:23:20.383
on the consolidation of
the small water systems.
00:23:21.470 --> 00:23:25.600
I know that the current ESJ Action Plan
00:23:25.600 --> 00:23:27.810
does mention the
consolidation of water systems,
00:23:27.810 --> 00:23:29.028
but since that time,
00:23:29.028 --> 00:23:32.300
there's been a lot of
activity in this area,
00:23:32.300 --> 00:23:37.300
not just the acquisition
of other utility systems,
00:23:37.350 --> 00:23:39.053
water systems, but also,
00:23:40.064 --> 00:23:43.140
not unregulated but
municipal systems as well
00:23:43.140 --> 00:23:45.790
throughout California,
especially the Central Valley.
00:23:47.030 --> 00:23:49.060
I guess the one thought I had is
00:23:49.060 --> 00:23:51.110
what sort of steps can
the Commission take
00:23:51.110 --> 00:23:53.490
as part of this ESJ Action Plan
00:23:53.490 --> 00:23:55.840
to further the area of consolidations?
00:23:55.840 --> 00:23:57.840
Because in addition to the Commission,
00:23:57.840 --> 00:24:01.570
you also have the State Water
Board doing work in this area.
00:24:01.570 --> 00:24:04.670
They have a mandatory
consolidation program,
00:24:04.670 --> 00:24:07.390
and in many instances,
00:24:07.390 --> 00:24:10.123
it's a lot of voluntary
consolidations as well.
00:24:11.690 --> 00:24:14.070
I think one thing that
CWA would like to see
00:24:14.070 --> 00:24:16.910
in the ESJ Action Plan
is to expand on this area.
00:24:16.910 --> 00:24:20.050
How can we remove some of the barriers
00:24:20.050 --> 00:24:22.860
to seeing these
consolidations go through?
00:24:22.860 --> 00:24:24.290
'Cause a lot of the time,
00:24:24.290 --> 00:24:28.170
not only do the dollars need to work out
00:24:28.170 --> 00:24:29.730
for it to make sense financially,
00:24:29.730 --> 00:24:31.960
but there's also other
regulatory barriers
00:24:31.960 --> 00:24:35.530
or the process just takes a long time,
00:24:35.530 --> 00:24:37.970
so I think a focus of CWA
00:24:37.970 --> 00:24:41.290
is to streamline the
consolidation process
00:24:41.290 --> 00:24:44.410
in a way that you can reach
out to these communities
00:24:44.410 --> 00:24:45.390
that are underserved,
00:24:45.390 --> 00:24:49.177
especially in Los Angeles
areas and in Central Valley,
00:24:49.177 --> 00:24:52.470
to make these consolidations happen,
00:24:52.470 --> 00:24:55.200
not only for affordability program
00:24:55.200 --> 00:24:57.487
but for water quality as well,
00:24:57.487 --> 00:25:00.883
and so that's just something
I wanted to pose to all of you.
00:25:02.940 --> 00:25:06.910
Okay, well, let
me begin by saying
00:25:06.910 --> 00:25:10.920
we would be delighted
to engage in a dialogue
00:25:10.920 --> 00:25:15.920
or see here what are the barriers
00:25:16.320 --> 00:25:19.380
from the point of view
of an acquiring utility
00:25:19.380 --> 00:25:23.003
or from a utility system
that wishes to be acquired.
00:25:24.543 --> 00:25:27.880
I'm sure that we don't appreciate
00:25:28.810 --> 00:25:33.523
how many barriers there
are and how many hoops,
00:25:34.690 --> 00:25:37.800
proverbial hoops or metaphorical hoops,
00:25:37.800 --> 00:25:40.243
the parties must get involved in.
00:25:41.120 --> 00:25:48.150
The CPUC is mostly
interested in costs and prices
00:25:48.150 --> 00:25:52.950
and who is going to bear the burden
00:25:52.950 --> 00:25:55.860
of paying in the process
00:25:56.894 --> 00:25:59.140
of a consolidation,
00:25:59.140 --> 00:26:03.150
and we are very careful to be sure
00:26:03.150 --> 00:26:05.260
that every consolidation that occurs
00:26:05.260 --> 00:26:09.963
or every acquisition that
occurs is just and reasonable,
00:26:11.030 --> 00:26:12.730
but beyond that,
00:26:12.730 --> 00:26:15.170
we would like to know
if there are barriers
00:26:15.170 --> 00:26:16.760
that we're not aware of
00:26:16.760 --> 00:26:19.940
or that we could
somehow help to alleviate
00:26:19.940 --> 00:26:22.750
in order to make this process go better,
00:26:22.750 --> 00:26:26.384
go faster and happen at less cost,
00:26:26.384 --> 00:26:29.980
and we certainly do try to
have a very good relationship
00:26:29.980 --> 00:26:32.950
with the State Water
Resources Control Board
00:26:32.950 --> 00:26:36.803
and work with them
on acquisitions as well.
00:26:38.200 --> 00:26:40.210
I don't know if there are other people
00:26:40.210 --> 00:26:42.480
who wish to speak on this topic,
00:26:42.480 --> 00:26:46.870
but this is an area
00:26:46.870 --> 00:26:50.350
where people who are
not in a good position
00:26:50.350 --> 00:26:54.053
to help themselves can
be helped by the CPUC.
00:26:55.890 --> 00:26:57.870
Yeah, just really
quickly on that point.
00:26:57.870 --> 00:27:02.010
We appreciate that the
Commission has recently taken action
00:27:02.010 --> 00:27:07.580
in the water LIRA
proceeding to adopt a set of
00:27:07.580 --> 00:27:09.730
minimum data requirements
for these acquisitions
00:27:09.730 --> 00:27:12.630
in an attempt to make the proceedings
00:27:12.630 --> 00:27:15.190
more streamlined and go faster,
00:27:15.190 --> 00:27:20.020
but I think those were
just adopted last August,
00:27:20.020 --> 00:27:22.360
so it remains to be
seen whether or not those
00:27:22.360 --> 00:27:24.500
have any effect in
these sort of proceedings,
00:27:24.500 --> 00:27:27.560
and so we just want to
keep the dialogue open
00:27:27.560 --> 00:27:28.670
and think about other ways
00:27:28.670 --> 00:27:31.000
that we can have the
Commission proceedings
00:27:31.000 --> 00:27:33.920
for authorization to
get acquisitions through,
00:27:33.920 --> 00:27:35.923
if there's anything we
can do on that front.
00:27:39.452 --> 00:27:41.647
I see one hand
raised in the chat
00:27:41.647 --> 00:27:44.060
and I also saw Lauren James
00:27:44.060 --> 00:27:45.950
hand raised a couple of minutes ago.
00:27:45.950 --> 00:27:48.200
Lauren, if you'd like to speak first
00:27:48.200 --> 00:27:51.257
and then the hand in the chat.
00:27:51.257 --> 00:27:53.350
All right. Thank you very much.
00:27:53.350 --> 00:27:55.900
Lauren James with
Suburban Water Systems.
00:27:55.900 --> 00:27:58.913
I am the manager of
communications and supplier diversity.
00:28:00.660 --> 00:28:03.250
Wasn't in relation to what
Willis was speaking about,
00:28:03.250 --> 00:28:04.610
which is great, another great topic.
00:28:04.610 --> 00:28:08.000
I have an inward-looking question
00:28:08.000 --> 00:28:10.130
to pose to the CPUC,
00:28:10.130 --> 00:28:13.760
and I know an important
part of the ESG strategy
00:28:13.760 --> 00:28:16.110
is to ensure that the PUC regulators
00:28:16.110 --> 00:28:18.550
and staff at the PUC
reflect the communities
00:28:18.550 --> 00:28:21.410
served by the utilities,
and I'm just curious,
00:28:21.410 --> 00:28:23.490
how is the Commission
working to diversify
00:28:23.490 --> 00:28:24.920
their own workforce?
00:28:24.920 --> 00:28:29.190
I think that would be a key
element in these discussions.
00:28:29.190 --> 00:28:31.900
When we're talking about low income
00:28:31.900 --> 00:28:34.680
and communities and social justice,
00:28:34.680 --> 00:28:37.710
how many people are on this
call from those communities
00:28:37.710 --> 00:28:40.030
that can shape this conversation
00:28:40.030 --> 00:28:43.700
and take us to the next
level of actually getting
00:28:43.700 --> 00:28:46.750
something done, something equitable,
00:28:46.750 --> 00:28:48.660
something that we can roll out together.
00:28:48.660 --> 00:28:53.350
I was just curious about how
the Commission is diversifying
00:28:53.350 --> 00:28:54.850
their own workforce right now.
00:28:57.460 --> 00:28:58.520
Jeff and Steve,
00:28:58.520 --> 00:29:00.019
I can take that if y'all would like.
00:29:00.019 --> 00:29:01.460
Thank you, Monica.
00:29:01.460 --> 00:29:04.530
Yeah, 'cause that applies
to some of our other goals.
00:29:04.530 --> 00:29:06.400
This Environmental and
Social Justice Action Plan
00:29:06.400 --> 00:29:09.140
is just one way that
we're trying to think about
00:29:09.140 --> 00:29:11.810
diversity, equity,
inclusion more broadly.
00:29:11.810 --> 00:29:13.510
Beyond this initiative,
00:29:13.510 --> 00:29:15.640
there are other initiatives at the PUC
00:29:15.640 --> 00:29:17.690
to get at exactly what
you're mentioning,
00:29:18.983 --> 00:29:21.040
two different efforts
that I will just name.
00:29:21.040 --> 00:29:22.770
There's more but two main ones.
00:29:22.770 --> 00:29:25.497
One that's inward-looking at
ourselves as a Commission
00:29:25.497 --> 00:29:27.960
and our staff is our,
00:29:27.960 --> 00:29:30.970
we have a diversity, equity,
inclusion new task force
00:29:30.970 --> 00:29:32.870
that is really taking a lot of those
00:29:32.870 --> 00:29:35.080
hiring practices into account
00:29:35.080 --> 00:29:38.450
and other measures of
inclusion into account,
00:29:38.450 --> 00:29:41.280
looking very much
inward with us as staff.
00:29:41.280 --> 00:29:44.987
We also are engaging
in a effort called CCORE
00:29:44.987 --> 00:29:48.930
and it's Capitol
Collaborative on Racial Equity.
00:29:48.930 --> 00:29:50.950
We have a cohort of
staff that are engaging in
00:29:50.950 --> 00:29:54.070
a year-long racial equity training.
00:29:54.070 --> 00:29:55.590
I am not personally part of the cohort,
00:29:55.590 --> 00:29:57.840
but I did participate in this cohort
00:29:57.840 --> 00:29:59.410
two years ago in a previous job,
00:29:59.410 --> 00:30:02.230
so I'm familiar with the
curriculum, at least a little bit,
00:30:02.230 --> 00:30:04.960
and they will be building
a racial equity plan
00:30:04.960 --> 00:30:07.140
for us as a Commission.
00:30:07.140 --> 00:30:09.240
There's a lot of folk. It's a
cross-Commission group.
00:30:09.240 --> 00:30:10.660
Much like our ESJ liaisons
00:30:10.660 --> 00:30:12.340
focusing on environmental justice,
00:30:12.340 --> 00:30:14.410
this group is working on racial equity
00:30:14.410 --> 00:30:17.520
and we are trying to
sync our Venn diagram
00:30:18.521 --> 00:30:21.000
in terms of how we overlap
on some of these issues.
00:30:21.000 --> 00:30:22.290
We want to be coordinated,
00:30:22.290 --> 00:30:24.640
but we don't want to say
that this effort is necessarily
00:30:24.640 --> 00:30:27.980
speaking to racial equity
or diversity in our staff.
00:30:27.980 --> 00:30:30.980
Those efforts are definitely
doing that more closely
00:30:30.980 --> 00:30:33.740
and we absolutely are
looking to support those efforts,
00:30:33.740 --> 00:30:35.910
but those are two examples.
00:30:35.910 --> 00:30:36.800
That's great, great to hear,
00:30:36.800 --> 00:30:40.120
and I would love to follow
up with this outside of this
00:30:40.120 --> 00:30:42.200
and to hear about your progress
00:30:42.200 --> 00:30:45.280
and what we're doing to
enhance this conversation as well,
00:30:45.280 --> 00:30:46.670
so that's great.
00:30:46.670 --> 00:30:47.503
Thank you.
00:30:50.590 --> 00:30:53.293
Okay, Jeanette had her
hand up. Jeanette Diaz.
00:30:56.050 --> 00:30:57.590
Good afternoon, everyone.
00:30:57.590 --> 00:30:58.710
My name is Jeanette Diaz.
00:30:58.710 --> 00:31:01.670
I'm the manager for supplier
diversity and special projects
00:31:01.670 --> 00:31:03.500
at San Gabriel Valley Water.
00:31:03.500 --> 00:31:07.533
I'm also the current chair of
the CWA USDP committee.
00:31:08.430 --> 00:31:10.050
Our supplier diversity programs
00:31:10.050 --> 00:31:13.640
are successful at ensuring
the regulated water utilities
00:31:13.640 --> 00:31:15.910
are spending on goods and services
00:31:15.910 --> 00:31:18.493
from diverse-owned businesses.
00:31:19.340 --> 00:31:22.750
Just a thought, what can
we do on a Commission level
00:31:22.750 --> 00:31:23.980
or a utility level
00:31:23.980 --> 00:31:26.710
to ensure that these
businesses we're supporting
00:31:26.710 --> 00:31:30.873
are in turn supporting members
of the ESJ communities?
00:31:35.700 --> 00:31:37.390
I have to say, I do not,
00:31:37.390 --> 00:31:40.650
I've not followed that question before.
00:31:40.650 --> 00:31:43.403
Is that something that you
can respond to, Monica?
00:31:44.910 --> 00:31:45.743
Sure. Yeah.
00:31:45.743 --> 00:31:48.290
I'm not a water
person, but I'm happy to.
00:31:48.290 --> 00:31:49.550
Unfortunately, we don't have,
00:31:49.550 --> 00:31:50.960
I'm sure you all know Stephanie Green
00:31:50.960 --> 00:31:53.590
who manages our
supplier diversity program.
00:31:53.590 --> 00:31:56.040
Unfortunately, I don't think
we have her on the line
00:31:57.210 --> 00:31:59.200
in my news and outreach colleagues.
00:32:01.790 --> 00:32:03.470
Yes, but I think that's
an important question
00:32:03.470 --> 00:32:06.040
that we should take to
the supplier diversity team
00:32:06.040 --> 00:32:08.420
and perhaps there
could even be a follow-up
00:32:08.420 --> 00:32:10.160
more deliberately about that.
00:32:10.160 --> 00:32:11.360
Similar to the workforce,
00:32:11.360 --> 00:32:14.123
we're scratching the
surface on some of this,
00:32:15.120 --> 00:32:17.620
but there are likely tangible
action items we can take.
00:32:17.620 --> 00:32:19.250
I just, to be honest,
00:32:19.250 --> 00:32:22.660
I'm not clear right now on
what they might be, yeah.
00:32:22.660 --> 00:32:24.590
And it's just, yeah,
to throw that out there
00:32:24.590 --> 00:32:27.150
and we can (faintly
speaking) together on that,
00:32:27.150 --> 00:32:28.960
we follow up, so yeah,
00:32:28.960 --> 00:32:31.900
that was just my comment
and thought to throw out.
00:32:31.900 --> 00:32:33.000
Yeah, and we can incorporate
00:32:33.000 --> 00:32:34.610
something like that into the plan,
00:32:34.610 --> 00:32:36.940
even just putting that on our to-do list
00:32:36.940 --> 00:32:38.650
of we need to explore this.
00:32:38.650 --> 00:32:41.850
That works too, so thank you.
00:32:41.850 --> 00:32:42.683
Thank you.
00:32:45.100 --> 00:32:46.670
Yeah, that's a great point.
00:32:46.670 --> 00:32:49.620
Are there any comments on that topic
00:32:49.620 --> 00:32:52.653
from elsewhere in the
chat, elsewhere in the call?
00:32:56.900 --> 00:32:58.050
Hey, Jefferson?
00:32:58.050 --> 00:33:00.290
I don't know if you can
hear me or not, sorry.
00:33:00.290 --> 00:33:01.823
Yes, we can.
Go ahead.
00:33:01.823 --> 00:33:04.270
This is Wes Owens with
California American Water
00:33:04.270 --> 00:33:07.752
and I unfortunately can't
figure out how to raise my hand,
00:33:07.752 --> 00:33:09.330
which is my fault.
00:33:09.330 --> 00:33:10.700
I know Monica explained it
00:33:10.700 --> 00:33:12.600
on the morning sessions multiple times,
00:33:12.600 --> 00:33:14.870
so of course when I need to do it,
00:33:14.870 --> 00:33:16.790
I can't figure it out,
so sorry about that.
00:33:16.790 --> 00:33:20.410
I figured I'd just jump
into the conversation,
00:33:20.410 --> 00:33:21.960
if that's all right with you,
00:33:21.960 --> 00:33:24.480
and I know we're maybe
jumping back and forth,
00:33:24.480 --> 00:33:27.590
but I was gonna jump back again
00:33:27.590 --> 00:33:30.380
to the the human right
to water discussion,
00:33:30.380 --> 00:33:32.890
and then Steve, I think
you teed up the question
00:33:32.890 --> 00:33:35.130
and then we went down a different path,
00:33:35.130 --> 00:33:36.540
but I'll just maybe,
00:33:36.540 --> 00:33:38.727
I just want to let you know
I wanted to talk about that,
00:33:38.727 --> 00:33:40.990
but I can wait and see if
there was any more response
00:33:40.990 --> 00:33:42.563
to what, okay.
00:33:44.470 --> 00:33:46.963
I think, and it's,
00:33:47.915 --> 00:33:49.880
I know we've beat on it
00:33:49.880 --> 00:33:51.940
in different proceedings
and in different routes.
00:33:51.940 --> 00:33:54.470
When I say we, I mean
it's the water industry,
00:33:54.470 --> 00:33:58.025
and it is this notion
that Willis talked about
00:33:58.025 --> 00:34:03.025
of streamlining the
consolidation applications,
00:34:03.200 --> 00:34:04.670
and I understand,
00:34:04.670 --> 00:34:08.720
I'm gonna try to keep in
the context of ESJ here and,
00:34:08.720 --> 00:34:13.107
'cause not every consolidation
is of an ESJ community,
00:34:13.107 --> 00:34:16.200
but a lot of them are
because that's a lot of the,
00:34:16.200 --> 00:34:17.140
like you know, Steve,
00:34:17.140 --> 00:34:20.273
it's a lot of the smaller
utilities who have,
00:34:21.770 --> 00:34:24.730
are in potentially
lower-income communities
00:34:24.730 --> 00:34:28.770
or disadvantaged communities
and have water quality issues
00:34:28.770 --> 00:34:29.603
in a lot of instances,
00:34:29.603 --> 00:34:33.280
and I know that we at
Cal Am have taken on
00:34:34.190 --> 00:34:36.650
or acquired several smaller utilities
00:34:36.650 --> 00:34:39.030
that have had water quality issues.
00:34:39.030 --> 00:34:42.330
One good example that
kinda hits a lot of these,
00:34:42.330 --> 00:34:43.690
checks a lot of these boxes, Steve,
00:34:43.690 --> 00:34:47.023
is our acquisition of
that Dunnigan system.
00:34:47.860 --> 00:34:52.728
It's a small community,
about 250 connections,
00:34:52.728 --> 00:34:54.780
a mobile home community
00:34:55.800 --> 00:34:58.410
right in the middle of
the valley about, I dunno,
00:34:58.410 --> 00:35:00.363
half an hour north of Sacramento,
00:35:01.250 --> 00:35:06.250
single-well and had chromium 6 issues,
00:35:06.880 --> 00:35:08.570
and chromium 6 issues
that were exceeding
00:35:08.570 --> 00:35:10.830
the MCL that was in effect.
00:35:10.830 --> 00:35:13.860
It's not now, but we all think
it ultimately will be again,
00:35:13.860 --> 00:35:16.080
and after Cal Am acquired the system,
00:35:16.080 --> 00:35:19.100
we were able to install treatment there
00:35:19.100 --> 00:35:20.283
on their single well.
00:35:21.291 --> 00:35:23.123
If treatment hadn't been installed,
00:35:24.250 --> 00:35:27.500
it would've been a
dire situation for them.
00:35:27.500 --> 00:35:28.610
And instead of having
00:35:29.890 --> 00:35:31.970
X hundred thousand dollar treatment
00:35:33.480 --> 00:35:35.560
being paid for by 250 customers,
00:35:35.560 --> 00:35:38.000
we were able to spread it
over our Sacramento district
00:35:38.000 --> 00:35:40.983
so it was being covered
by 60,000 customers.
00:35:41.950 --> 00:35:43.960
Instead of costing $40 a month,
00:35:43.960 --> 00:35:46.850
it cost 15 cents a month per customer.
00:35:46.850 --> 00:35:50.250
I think that really hits the,
00:35:50.250 --> 00:35:51.510
especially on this goal three,
00:35:51.510 --> 00:35:54.190
I'm looking at the ESJ plan right now,
00:35:54.190 --> 00:35:56.763
striving to improve access
to high-quality water.
00:35:59.030 --> 00:36:01.450
But unfortunately what we're seeing is
00:36:01.450 --> 00:36:03.730
sometimes these acquisition applications
00:36:03.730 --> 00:36:06.880
that are supposed to
take around 260 days
00:36:06.880 --> 00:36:08.740
can take years, (laughs)
00:36:08.740 --> 00:36:11.390
and I think Dunnigan
wasn't years, necessarily,
00:36:11.390 --> 00:36:13.440
but we've had other ones since then
00:36:13.440 --> 00:36:15.730
that have taken multiple years.
00:36:15.730 --> 00:36:20.320
Like Willis said in the
LIRA phase one rulemaking,
00:36:20.320 --> 00:36:22.630
there was a decision
that I think attempted
00:36:22.630 --> 00:36:25.690
to try to streamline it but maybe we,
00:36:25.690 --> 00:36:28.850
even if it was just specific to
disadvantaged communities,
00:36:28.850 --> 00:36:32.340
like ways of trying to
check certain boxes
00:36:32.340 --> 00:36:35.260
so that we can expedite acquisitions
00:36:35.260 --> 00:36:38.090
of these kind of disadvantaged
communities more quickly.
00:36:38.090 --> 00:36:40.220
And the other thing,
and maybe this is just me
00:36:40.220 --> 00:36:42.040
being a little bit new to this arena,
00:36:42.040 --> 00:36:44.580
is a little more definition on
00:36:44.580 --> 00:36:46.860
what makes a disadvantaged community.
00:36:46.860 --> 00:36:50.160
After hearing about
EnviroScreen tool yesterday
00:36:50.160 --> 00:36:51.470
and then this morning again,
00:36:51.470 --> 00:36:53.420
I pulled it up myself and, for example,
00:36:53.420 --> 00:36:57.470
I pulled up Dunnigan and
it was in the yellow zone,
00:36:57.470 --> 00:37:01.150
which was 50 to 60%,
00:37:01.150 --> 00:37:04.580
and this is just 10 minutes
spent trying to understand it.
00:37:04.580 --> 00:37:07.240
I was like, so is that, it
seems like that's bad,
00:37:07.240 --> 00:37:09.110
but not as bad as
some of the other places,
00:37:09.110 --> 00:37:11.100
so maybe just some help from,
00:37:11.100 --> 00:37:13.010
and I pulled up the Commission website
00:37:13.010 --> 00:37:15.020
about disadvantaged
communities and read there,
00:37:15.020 --> 00:37:18.390
but maybe some more
help from Water Division
00:37:18.390 --> 00:37:21.940
or other groups within the PUC
00:37:21.940 --> 00:37:24.133
try and understand what makes it,
00:37:26.610 --> 00:37:28.700
what is the definition of
disadvantaged community,
00:37:28.700 --> 00:37:31.250
which I think was a big
part of the conversation
00:37:31.250 --> 00:37:33.200
yesterday around definitions,
00:37:33.200 --> 00:37:35.930
so maybe a little
more clarity around that
00:37:35.930 --> 00:37:38.810
for us water companies
who aren't, I don't think,
00:37:38.810 --> 00:37:42.360
as involved as maybe some
of the energy companies are
00:37:42.360 --> 00:37:43.223
in this field.
00:37:44.160 --> 00:37:45.840
And maybe that's just speaking for me.
00:37:45.840 --> 00:37:48.100
I know Ed is a lot more knowledgeable
00:37:48.100 --> 00:37:49.770
in this area than I am,
00:37:49.770 --> 00:37:53.690
but I think that input
coming from the CPUC
00:37:53.690 --> 00:37:56.530
and maybe even the Water
Division would be helpful.
00:37:56.530 --> 00:37:59.023
Okay, well, thank
you for that, Wes.
00:38:00.040 --> 00:38:02.910
Certainly yesterday
morning was when we worked
00:38:02.910 --> 00:38:06.170
very hard on the
definitions, and as you saw,
00:38:06.170 --> 00:38:09.650
there's multiple definitions
and different definitions
00:38:09.650 --> 00:38:11.600
that are in legislation
00:38:12.446 --> 00:38:17.099
that we must follow,
et cetera, but we are,
00:38:17.099 --> 00:38:19.920
and so we're not gonna
go through that again today,
00:38:19.920 --> 00:38:23.720
but we are interested
in the Water Division in
00:38:27.121 --> 00:38:29.550
facilitating acquisitions
00:38:29.550 --> 00:38:32.400
to the extent that we're able to do so,
00:38:32.400 --> 00:38:34.210
and so that's now on the list
00:38:34.210 --> 00:38:36.230
and we will definitely be having
00:38:36.230 --> 00:38:38.550
a further discussion
of that in the future,
00:38:38.550 --> 00:38:41.330
and I thank you for that comment.
00:38:41.330 --> 00:38:43.050
As for whether or not,
00:38:43.050 --> 00:38:46.990
maybe on average we would
get tougher on acquisitions
00:38:46.990 --> 00:38:49.320
in the places where they do not involve
00:38:50.440 --> 00:38:55.440
facilitating greater
environmental and societal justice.
00:38:55.440 --> 00:38:56.320
I don't think so.
00:38:56.320 --> 00:38:58.240
I think we're going to try to make sure
00:38:58.240 --> 00:39:00.430
that our processes work for everybody
00:39:00.430 --> 00:39:03.133
but certainly in the
ESJ communities, yes.
00:39:04.490 --> 00:39:06.311
I did not say that, Steve.
00:39:06.311 --> 00:39:07.530
(Steve laughs)
Don't get tougher.
00:39:07.530 --> 00:39:08.770
I didn't say get tougher anywhere.
00:39:08.770 --> 00:39:12.103
Well, does everything
get better on average?
00:39:12.980 --> 00:39:14.113
Yeah, exactly.
00:39:15.300 --> 00:39:17.120
Okay.
Thanks for the time.
00:39:17.120 --> 00:39:20.570
Yes, we have another
hand up, but I don't know.
00:39:20.570 --> 00:39:23.413
It's JACOBSE, I believe. Who is that?
00:39:24.410 --> 00:39:25.243
Hi, Steve.
00:39:25.243 --> 00:39:27.627
It's Evan Jacobs here from
California American Water
00:39:27.627 --> 00:39:30.310
and I'm also the current board president
00:39:30.310 --> 00:39:32.380
of the California Water Association,
00:39:32.380 --> 00:39:34.090
and I actually had a little
bit of a follow-up question
00:39:34.090 --> 00:39:36.390
to Wes's just in terms
of the different screens
00:39:36.390 --> 00:39:38.420
that are being used,
00:39:38.420 --> 00:39:40.820
and the one that I am
the most familiar with
00:39:40.820 --> 00:39:43.620
and use in the context
of the State Water Board
00:39:43.620 --> 00:39:45.750
is the Department of Water Resources
00:39:45.750 --> 00:39:50.750
runs its own screen for water,
00:39:50.820 --> 00:39:53.560
and it's not something
you all have to answer now,
00:39:53.560 --> 00:39:55.520
but I would just be interested knowing
00:39:55.520 --> 00:39:58.620
if the Commission has
preference or thoughts
00:39:58.620 --> 00:40:01.000
on the relative advantages
and disadvantages
00:40:01.000 --> 00:40:04.990
of the DWR screen verse CalEnviroScreen,
00:40:04.990 --> 00:40:08.853
which I think looks at more
different non-related factors.
00:40:10.520 --> 00:40:12.560
Yes, I'm unable to provide you
00:40:12.560 --> 00:40:15.397
with the CPUC's opinion about that,
00:40:15.397 --> 00:40:18.960
and honestly, I do not know the answer.
00:40:18.960 --> 00:40:19.800
Okay.
00:40:19.800 --> 00:40:20.797
Yeah, thank you.
00:40:22.920 --> 00:40:24.290
Jeff, do you have
any thoughts on that?
00:40:24.290 --> 00:40:27.063
Are you familiar with
that water board screen?
00:40:29.050 --> 00:40:31.180
I'm not familiar
with the DWR screen.
00:40:31.180 --> 00:40:33.190
I know Wes, to your question,
00:40:33.190 --> 00:40:36.560
just the disadvantaged
community definition
00:40:36.560 --> 00:40:38.070
in CalEnviroScreen is based on
00:40:38.070 --> 00:40:41.943
the top 25% of CalEnviroScreen scores,
00:40:42.940 --> 00:40:44.380
so taking into account
00:40:44.380 --> 00:40:48.310
both pollutants and
socioeconomic factors,
00:40:48.310 --> 00:40:50.710
but that's how that one
is defined just briefly.
00:41:02.780 --> 00:41:04.660
I think maybe one thing
I would like to bring up,
00:41:04.660 --> 00:41:09.430
and consolidation has been
mentioned a couple of times,
00:41:09.430 --> 00:41:12.020
and one thing that I
think is worth talking about
00:41:12.020 --> 00:41:15.693
in that context is maybe
this tension between,
00:41:18.020 --> 00:41:21.230
acquisition of a water
system in an ESJ community
00:41:21.230 --> 00:41:24.623
obviously has benefits such
as safer, more reliable service.
00:41:25.630 --> 00:41:27.980
There's obviously a tension between that
00:41:27.980 --> 00:41:29.760
and then the additional costs
00:41:29.760 --> 00:41:33.903
which run the risk of burdening
ESJ communities further.
00:41:35.020 --> 00:41:37.123
Does anyone else have thoughts about
00:41:37.123 --> 00:41:39.040
how those two things interact,
00:41:39.040 --> 00:41:43.260
especially for existing
rate payers who may not be
00:41:44.770 --> 00:41:46.763
not necessarily of the acquired system?
00:41:47.786 --> 00:41:49.420
I know that's something
Water Division is thinking about
00:41:49.420 --> 00:41:51.660
a lot during these acquisitions.
00:41:51.660 --> 00:41:53.520
Is it, and sorry,
00:41:53.520 --> 00:41:55.580
I don't want to bogart
the conversation here,
00:41:55.580 --> 00:41:57.400
but is it the burden,
00:41:57.400 --> 00:42:00.110
I guess there's two groups to look at.
00:42:00.110 --> 00:42:02.700
The burden's on, you
say, existing customers,
00:42:02.700 --> 00:42:06.020
but both utilities have
existing customers.
00:42:06.020 --> 00:42:09.550
Is it the existing customers
for the acquiring utility
00:42:09.550 --> 00:42:14.290
or the existing customers
for the acquired utilities?
00:42:14.290 --> 00:42:17.170
And I think the PUC
00:42:18.560 --> 00:42:20.860
looks at both of those,
00:42:20.860 --> 00:42:22.510
and I guess in the realm of this,
00:42:24.046 --> 00:42:26.760
what we see a lot is
00:42:26.760 --> 00:42:29.640
it's easier to look at current rates
00:42:29.640 --> 00:42:31.610
of the acquired utilities
00:42:31.610 --> 00:42:33.430
'cause they're usually lower
00:42:33.430 --> 00:42:36.900
because they're usually
not investing as much
00:42:36.900 --> 00:42:41.013
in their systems, and again,
00:42:41.943 --> 00:42:44.523
(laughs) I keep beating on this drum,
00:42:45.830 --> 00:42:48.087
but when we're able to acquire
00:42:48.087 --> 00:42:50.573
and we make necessary investments,
00:42:51.940 --> 00:42:55.480
we could spread those
over a larger customer base,
00:42:55.480 --> 00:42:57.020
so I think the Commission
needs to look at it
00:42:57.020 --> 00:42:58.400
from that perspective as well,
00:42:58.400 --> 00:43:01.100
not just like, all right,
their rates are low right now
00:43:01.100 --> 00:43:02.800
and if they get acquired,
00:43:02.800 --> 00:43:04.590
and let's say they even get acquired
00:43:04.590 --> 00:43:08.920
by a nearby contiguous utility
00:43:08.920 --> 00:43:11.570
that has higher rates,
00:43:11.570 --> 00:43:13.990
well, and let's say we
assume that they're gonna
00:43:14.960 --> 00:43:16.330
conform those rates somehow,
00:43:16.330 --> 00:43:18.300
maybe not immediately
but sometime in the future,
00:43:18.300 --> 00:43:20.630
then that means their
rates will be higher,
00:43:20.630 --> 00:43:24.060
but you also need to look
at it from the perspective of,
00:43:24.060 --> 00:43:26.960
okay, if they also might have
00:43:28.470 --> 00:43:32.890
future capital spending needs
that they've been deferring
00:43:32.890 --> 00:43:34.830
that if they ultimately need to do that,
00:43:34.830 --> 00:43:36.380
which they will at some point,
00:43:36.380 --> 00:43:37.700
one way or the other,
00:43:37.700 --> 00:43:41.950
then those acquired
company's rates would go up
00:43:43.130 --> 00:43:45.520
probably above even the,
00:43:45.520 --> 00:43:49.050
almost likely above even
the post-acquisition rate.
00:43:49.050 --> 00:43:52.684
I think it's multifaceted.
00:43:52.684 --> 00:43:53.610
It's not just looking at,
00:43:53.610 --> 00:43:55.550
it's not a snapshot in time of
00:43:55.550 --> 00:43:56.950
here's what their rates are now,
00:43:56.950 --> 00:43:59.090
here's what the acquired
company's rates are now.
00:43:59.090 --> 00:44:02.083
There's a lot of different moving parts.
00:44:04.177 --> 00:44:05.770
You are absolutely right.
00:44:05.770 --> 00:44:08.470
There's a lot of issues involved,
00:44:08.470 --> 00:44:13.450
including that the people
in the acquired community
00:44:16.270 --> 00:44:19.840
probably they are being
underserved, underinvested,
00:44:19.840 --> 00:44:22.440
and their rates are too low
00:44:22.440 --> 00:44:26.090
and the local water
utility has been either
00:44:26.090 --> 00:44:27.860
unwilling to apply at the CPUC
00:44:30.624 --> 00:44:35.080
or unwilling to go through
the Prop 218 process
00:44:35.080 --> 00:44:36.703
of raising rates.
00:44:37.600 --> 00:44:39.180
These are serious problems
00:44:39.180 --> 00:44:43.030
and society's preferences
are not always clear
00:44:43.030 --> 00:44:45.070
as to what people want to do.
00:44:45.070 --> 00:44:47.310
A lot of people would
like to be left alone,
00:44:47.310 --> 00:44:49.940
and even if I don't have
the best water in the world,
00:44:49.940 --> 00:44:52.200
well, leave me alone.
00:44:52.200 --> 00:44:53.330
This is a problem,
00:44:53.330 --> 00:44:56.537
and other people will
say just the opposite,
00:44:56.537 --> 00:44:58.050
"I've chosen to live here.
00:44:58.050 --> 00:45:01.987
Why can't I get good
service like they get in town?"
00:45:03.701 --> 00:45:06.700
These are issues that
have to be adjudicated
00:45:06.700 --> 00:45:08.073
in every single case.
00:45:11.900 --> 00:45:14.620
I wonder if we should
go onto another topic
00:45:14.620 --> 00:45:16.803
or do we have any other hands up still?
00:45:17.970 --> 00:45:20.550
Jacob, you have your hand up.
We have one more hand up.
00:45:20.550 --> 00:45:22.187
Yeah, hi, Evan Jacobs again
00:45:22.187 --> 00:45:24.430
and I raised my hand again.
00:45:24.430 --> 00:45:25.980
Evan, I'm sorry. Yes.
00:45:25.980 --> 00:45:27.180
Oh, no worries.
00:45:28.280 --> 00:45:31.100
One of the things that I think
Manny Teodoro talked about
00:45:31.100 --> 00:45:33.310
at a Commission proceeding
a couple of years ago
00:45:33.310 --> 00:45:36.100
was the concept of affordability
00:45:36.100 --> 00:45:39.370
at both the individual level
and the community level,
00:45:39.370 --> 00:45:42.057
and one of the things I think the PUC
00:45:42.057 --> 00:45:43.810
and the PUC-regulated water utilities
00:45:43.810 --> 00:45:46.240
have really shown a lot of leadership in
00:45:46.240 --> 00:45:49.130
is providing affordability protection
00:45:49.130 --> 00:45:50.713
at the individual level.
00:45:51.720 --> 00:45:54.160
Primarily through customer
assistance programs
00:45:54.160 --> 00:45:57.220
and certainly with the
affordability and LIRA program,
00:45:57.220 --> 00:45:59.660
we're looking at expanding
and improving upon
00:45:59.660 --> 00:46:01.323
what already exists,
00:46:02.185 --> 00:46:04.677
but one of the things
that I was very proud of
00:46:04.677 --> 00:46:06.450
and that may be something to think about
00:46:06.450 --> 00:46:08.160
in future acquisition proceedings,
00:46:08.160 --> 00:46:11.510
particularly for those of
disadvantaged communities,
00:46:11.510 --> 00:46:14.280
is California American
Water acquired three systems
00:46:14.280 --> 00:46:17.770
in 2019 and '20 in
disadvantaged communities,
00:46:17.770 --> 00:46:20.830
the Fruit Ridge system
in the Sacramento region,
00:46:20.830 --> 00:46:24.520
the Hillview water
systems in Madera County,
00:46:24.520 --> 00:46:27.860
and the Rio Plaza
system in Ventura County,
00:46:27.860 --> 00:46:30.990
all of which were serving
disadvantaged communities,
00:46:30.990 --> 00:46:34.100
and generally we are not able to extend
00:46:34.100 --> 00:46:37.370
all of our customer assistance
or conservation programs
00:46:37.370 --> 00:46:39.470
to newly acquired systems
00:46:39.470 --> 00:46:41.380
until after it has been considered
00:46:41.380 --> 00:46:43.610
through a full rate case process,
00:46:43.610 --> 00:46:45.470
and this year with the encouragement of
00:46:45.470 --> 00:46:47.280
the Water Division
and the Commissioners,
00:46:47.280 --> 00:46:50.520
we actually filed for and were approved
00:46:50.520 --> 00:46:52.810
to extend our customer
assistance program,
00:46:52.810 --> 00:46:54.960
our rate payer assistance program,
00:46:54.960 --> 00:46:58.280
into each of those communities in 2020
00:46:58.280 --> 00:47:00.180
during the height of, well,
00:47:00.180 --> 00:47:02.340
I guess it was the previous
height of the COVID crisis.
00:47:02.340 --> 00:47:05.460
It seems like we're still in
the middle of the COVID crisis,
00:47:05.460 --> 00:47:07.230
but I think that was a real success
00:47:07.230 --> 00:47:10.583
and it was a step forward
bringing 7,000 customers,
00:47:11.730 --> 00:47:13.100
many of whom really needed it,
00:47:13.100 --> 00:47:14.790
some relief on their water bills
00:47:14.790 --> 00:47:16.860
by extending that assistance.
00:47:16.860 --> 00:47:19.060
I think that's one thing
we can look at in the future,
00:47:19.060 --> 00:47:22.390
is how quickly we're able
to extend those programs
00:47:22.390 --> 00:47:24.070
to newly acquired systems,
00:47:24.070 --> 00:47:26.833
particularly when
circumstances are dire.
00:47:33.860 --> 00:47:35.301
Hey, Steve.
00:47:35.301 --> 00:47:37.790
It's John Tang with San
Jose Water Company.
00:47:37.790 --> 00:47:40.293
I hope I can make a comment.
00:47:41.352 --> 00:47:42.252
Is that all right?
00:47:43.550 --> 00:47:44.383
Hello?
00:47:45.470 --> 00:47:46.970
Yes, go ahead.
00:47:46.970 --> 00:47:48.350
I was muted there for a second.
00:47:48.350 --> 00:47:49.450
Go ahead, John.
00:47:49.450 --> 00:47:50.410
Okay. Thank you.
00:47:50.410 --> 00:47:52.740
I took note of your comment
00:47:52.740 --> 00:47:55.090
and the conversation between Wes
00:47:55.090 --> 00:47:57.410
and others about consolidation
00:47:57.410 --> 00:47:59.920
and I think from the public,
00:47:59.920 --> 00:48:01.410
from the investor-owned utility,
00:48:01.410 --> 00:48:03.050
from the regulated utility perspective,
00:48:03.050 --> 00:48:05.360
we want to be part of the solution
00:48:05.360 --> 00:48:08.740
if it makes sense for
the utility being acquired
00:48:08.740 --> 00:48:12.670
and it makes sense for
our customers as well.
00:48:12.670 --> 00:48:18.380
I think your comments
brought to mind a situation.
00:48:18.380 --> 00:48:22.780
In general, I think when
these consolidations occur,
00:48:22.780 --> 00:48:24.670
not always, but I think in general,
00:48:24.670 --> 00:48:27.960
there's a flavor of
underinvestments, as you said,
00:48:27.960 --> 00:48:31.240
a degradation of service,
water quality issues.
00:48:31.240 --> 00:48:33.750
There are multiple
stories of communities
00:48:33.750 --> 00:48:36.530
where they don't have
safe and reliable water.
00:48:36.530 --> 00:48:39.600
They cannot drink from
the tap and the papers
00:48:39.600 --> 00:48:41.797
have a field day with
that in terms of saying,
00:48:41.797 --> 00:48:42.870
"How can this happen
00:48:42.870 --> 00:48:45.540
in the fifth largest
economy in the world,
00:48:45.540 --> 00:48:46.560
here in California?"
00:48:46.560 --> 00:48:50.589
And we know, internally
we know how it can happen.
00:48:50.589 --> 00:48:54.020
A lack of rate base,
lack of critical math,
00:48:54.020 --> 00:48:56.150
a lack of courage
maybe, as you mentioned,
00:48:56.150 --> 00:48:59.674
to go through the Prop 218 process
00:48:59.674 --> 00:49:03.160
to be able to make those
adequate investments,
00:49:03.160 --> 00:49:03.993
and so I think
00:49:04.933 --> 00:49:08.340
when I hear that some of these utilities
00:49:08.340 --> 00:49:09.560
don't want to be approached
00:49:09.560 --> 00:49:11.920
or don't want to have anything changed,
00:49:11.920 --> 00:49:12.923
I'm just wondering,
00:49:14.573 --> 00:49:16.773
how can they have that
kind of position when
00:49:18.020 --> 00:49:19.950
safe and reliable water services
00:49:19.950 --> 00:49:23.920
is one of the underpinnings
of our society, so to speak?
00:49:23.920 --> 00:49:26.603
So just curious as to
your comments on that.
00:49:30.540 --> 00:49:32.660
Well, I don't have a
lot more to say about it.
00:49:32.660 --> 00:49:37.210
I can relate to you the
folklore that has come to me,
00:49:37.210 --> 00:49:42.210
and I was not in California
in the 1920s and 1930s,
00:49:42.916 --> 00:49:44.963
and I wasn't even alive then,
00:49:46.120 --> 00:49:49.240
but part of the story that we hear
00:49:49.240 --> 00:49:52.330
is that some of the reasons
00:49:52.330 --> 00:49:55.940
that such small utilities exist
00:49:55.940 --> 00:49:59.503
is that when someone
was developing a new town,
00:50:00.440 --> 00:50:05.080
the developer would
go to the local agency
00:50:05.080 --> 00:50:08.270
that might be interested
in supplying water,
00:50:08.270 --> 00:50:11.650
a state agency or a local town,
00:50:11.650 --> 00:50:13.447
a municipality, and say,
00:50:13.447 --> 00:50:16.330
"Won't you hook up our new area?
00:50:16.330 --> 00:50:19.950
We're going to be building
5,000, 10,000 homes.
00:50:19.950 --> 00:50:22.620
It's a few feet that way,"
00:50:22.620 --> 00:50:24.377
and the answer would be,
00:50:24.377 --> 00:50:26.650
"Gosh, that looks
like a lot of investment.
00:50:26.650 --> 00:50:28.540
I'm not sure we really want to do that.
00:50:28.540 --> 00:50:31.600
We might have to raise
rates to our existing customers
00:50:31.600 --> 00:50:33.900
who are very happy with us now,"
00:50:33.900 --> 00:50:38.060
and then the developer
would have to develop
00:50:38.060 --> 00:50:40.350
a water system on its own
00:50:40.350 --> 00:50:43.350
as well as build the houses
00:50:43.350 --> 00:50:46.143
and infrastructure of
the rest of the community.
00:50:48.140 --> 00:50:51.750
That's an indication that
this is not a new problem.
00:50:51.750 --> 00:50:53.490
This is a problem that has been
00:50:53.490 --> 00:50:55.760
in existence for a long time
00:50:55.760 --> 00:51:00.760
and it is only through
the action of utilities,
00:51:00.890 --> 00:51:04.373
such as the Class
A water utilities here,
00:51:05.220 --> 00:51:08.710
to be willing to take over such systems
00:51:08.710 --> 00:51:11.670
and rebuild them to modern standards
00:51:11.670 --> 00:51:15.030
that these towns can be
saved from going down
00:51:15.030 --> 00:51:18.340
into this process that you
mentioned of degradation,
00:51:18.340 --> 00:51:22.040
underinvestment, rates that
are too low that don't serve,
00:51:22.040 --> 00:51:24.030
and unfortunately,
00:51:24.030 --> 00:51:28.430
being undersized compared
to modern organizations
00:51:28.430 --> 00:51:29.740
that have to be larger,
00:51:29.740 --> 00:51:34.650
but this is, what we're trying
to do is go forward from here
00:51:34.650 --> 00:51:37.437
and not go backwards and say,
00:51:37.437 --> 00:51:40.010
"How did we get into
this difficult situation
00:51:40.010 --> 00:51:41.137
in the first place?"
00:51:48.040 --> 00:51:51.780
I wonder if we could go into questions
00:51:51.780 --> 00:51:54.920
about COVID and COVID relief
00:51:54.920 --> 00:51:59.920
and how will the water
systems of California
00:52:00.280 --> 00:52:04.380
be able to deal with the fact
that there are many people
00:52:04.380 --> 00:52:06.530
who are not able to pay their bills,
00:52:06.530 --> 00:52:08.230
who aren't paying their bills,
00:52:08.230 --> 00:52:09.460
and that at some point
00:52:09.460 --> 00:52:11.810
we're going to have to
dig out of that problem.
00:52:18.403 --> 00:52:21.070
And there are zero raised hands.
00:52:23.510 --> 00:52:25.603
Steve, I see one
from Edward Simon.
00:52:28.130 --> 00:52:29.920
Edward, thank you.
00:52:29.920 --> 00:52:30.753
Hi, Steve,
00:52:30.753 --> 00:52:34.370
and I know Wes and Evan
can jump in here as well.
00:52:34.370 --> 00:52:35.990
I know, and you probably know this,
00:52:35.990 --> 00:52:37.150
California American Water,
00:52:37.150 --> 00:52:39.860
we are not shutting off customers
00:52:39.860 --> 00:52:42.730
during this particular
time, so you're right.
00:52:42.730 --> 00:52:45.680
For those that are not paying
something toward the bill,
00:52:45.680 --> 00:52:47.180
there will be at some point
00:52:48.447 --> 00:52:53.250
a need for us to reconcile
those lack of payments,
00:52:53.250 --> 00:52:55.200
but I know we would offer
00:52:55.200 --> 00:52:57.380
several payment options and terms.
00:52:57.380 --> 00:52:58.946
We certainly work with customers
00:52:58.946 --> 00:53:02.910
and will in this particular situation,
00:53:02.910 --> 00:53:03.800
but you're right,
00:53:03.800 --> 00:53:05.907
they're gonna have to
come to some point to say,
00:53:05.907 --> 00:53:06.740
"You know what?
00:53:06.740 --> 00:53:09.450
I need to start paying
something on this bill
00:53:09.450 --> 00:53:12.300
as I continue to utilize the service,"
00:53:12.300 --> 00:53:15.918
but I know a lot of the other
utilities are not shutting off
00:53:15.918 --> 00:53:19.340
and disconnecting
service at this time as well
00:53:19.340 --> 00:53:22.770
but would love to hear what
other folks maybe are thinking
00:53:22.770 --> 00:53:25.033
or maybe doing with regards to that.
00:53:29.820 --> 00:53:31.530
Thank you, Edward,
00:53:31.530 --> 00:53:33.410
and my understanding is
00:53:33.410 --> 00:53:36.270
that utilities are not
cutting off service,
00:53:36.270 --> 00:53:39.160
or utilities in general
are not cutting off service
00:53:39.160 --> 00:53:42.510
due to nonpayment at this time.
00:53:42.510 --> 00:53:45.370
Of course, there still
may be customer shutoffs
00:53:45.370 --> 00:53:48.540
if there's a leak or if
there's some other need
00:53:48.540 --> 00:53:50.803
to turn off the water.
00:53:52.320 --> 00:53:57.320
But customers are, I'm sure,
00:53:57.820 --> 00:54:01.530
thinking about this
and also the companies,
00:54:01.530 --> 00:54:05.440
and not just companies
but also state agencies
00:54:05.440 --> 00:54:08.930
and municipalities are
suffering from the fact
00:54:08.930 --> 00:54:10.940
that they have large
accounts receivables
00:54:10.940 --> 00:54:13.240
or larger than they used to be
00:54:13.240 --> 00:54:18.160
and will at some point
have greater capital costs
00:54:18.160 --> 00:54:22.053
in order to keep those floating.
00:54:25.570 --> 00:54:27.620
Willis, I see you have your hand up.
00:54:27.620 --> 00:54:31.930
Yeah, I just wanted to
say something quickly about
00:54:31.930 --> 00:54:35.750
this point when we'll have
to reconcile everything,
00:54:35.750 --> 00:54:39.880
and one point that we've
had on our mind at CWA is that
00:54:41.290 --> 00:54:43.850
with the water utility
sector specifically,
00:54:43.850 --> 00:54:45.470
we're kind of in a unique position
00:54:45.470 --> 00:54:48.450
separate from the energy and telecom
00:54:48.450 --> 00:54:50.650
because not only do we have these
00:54:50.650 --> 00:54:54.610
emergency customer to
protections by the CPUC,
00:54:54.610 --> 00:54:57.400
but there's also a executive
order from the Governor
00:54:57.400 --> 00:54:59.060
that prohibits shutoffs,
00:54:59.060 --> 00:55:02.960
and so we're dealing with
these competing directives
00:55:02.960 --> 00:55:05.600
and they don't always
line up because of the,
00:55:05.600 --> 00:55:08.980
right now there's the
Draft Resolution M-4849
00:55:10.800 --> 00:55:14.370
that would extend the protections
through the end of June,
00:55:14.370 --> 00:55:15.590
whereas the executive order,
00:55:15.590 --> 00:55:16.770
there's no end date on it.
00:55:16.770 --> 00:55:18.210
It's there until it's lifted
00:55:18.210 --> 00:55:20.163
and we're unclear when that will be.
00:55:21.640 --> 00:55:23.610
I can't answer the question directly,
00:55:23.610 --> 00:55:24.600
but I just wanted to point out
00:55:24.600 --> 00:55:27.670
that from the water
utilities' perspective,
00:55:27.670 --> 00:55:31.900
there's these different
overlapping directives
00:55:31.900 --> 00:55:34.530
that we're trying to comply
with all at the same time,
00:55:34.530 --> 00:55:38.163
so that complicates
the response, I'd say.
00:55:39.340 --> 00:55:40.173
It does.
00:55:42.780 --> 00:55:45.480
Okay, I've just gotten
the word from Monica
00:55:45.480 --> 00:55:49.230
that we should turn to a summary
00:55:49.230 --> 00:55:51.200
and a closure of this meeting.
00:55:51.200 --> 00:55:53.480
I want to thank everyone
for their comments.
00:55:53.480 --> 00:55:56.820
This has been a very
interesting set of comments
00:55:56.820 --> 00:56:00.320
and lord knows we've
got a long way to go
00:56:00.320 --> 00:56:02.430
to make California into the paradise
00:56:02.430 --> 00:56:03.630
that we hope it will be.
00:56:06.630 --> 00:56:08.760
I can give a quick recap.
00:56:08.760 --> 00:56:11.480
We're trying to just recap
at the end of all the sessions,
00:56:11.480 --> 00:56:12.320
the main themes,
00:56:12.320 --> 00:56:16.530
and in this conversation
it definitely was,
00:56:16.530 --> 00:56:19.330
there's definitely
some supplier diversity
00:56:19.330 --> 00:56:21.100
and workforce development,
00:56:21.100 --> 00:56:22.840
potential opportunities
in the water space
00:56:22.840 --> 00:56:25.390
that we haven't really
discussed or pursued,
00:56:25.390 --> 00:56:28.120
so there's probably some
angles there to talk about,
00:56:28.120 --> 00:56:30.890
and continuing to partner
with our other colleagues
00:56:30.890 --> 00:56:33.810
on promoting racial equity
and diversity of our workforce
00:56:33.810 --> 00:56:36.200
such that the people
that we're trying to lift up
00:56:36.200 --> 00:56:37.830
in these conversations
actually work at the PUC
00:56:37.830 --> 00:56:40.920
and that we represent California.
00:56:40.920 --> 00:56:42.943
Definitely heard that loud and clear.
00:56:44.060 --> 00:56:46.350
Obviously, the conversation
talked quite a bit about
00:56:46.350 --> 00:56:48.630
consolidation and
what the opportunity is
00:56:48.630 --> 00:56:52.770
to create efficiencies and streamlining
00:56:52.770 --> 00:56:54.470
in the consolidation process
00:56:54.470 --> 00:56:56.680
such that it benefits
disadvantaged communities
00:56:56.680 --> 00:56:58.740
and environmental justice communities,
00:56:58.740 --> 00:57:01.720
and I think I will speak as a new person
00:57:01.720 --> 00:57:02.930
that's relatively new to water.
00:57:02.930 --> 00:57:06.480
I know water is its own
very important space
00:57:06.480 --> 00:57:08.510
and I wouldn't say
I'm any kind of expert,
00:57:08.510 --> 00:57:10.690
but understanding what
some of these dynamics
00:57:10.690 --> 00:57:12.520
are in communities,
00:57:12.520 --> 00:57:14.050
communities that might want to stay
00:57:14.050 --> 00:57:15.860
on their small water utility
00:57:15.860 --> 00:57:17.490
or where there might be opportunities
00:57:17.490 --> 00:57:19.860
to get into a bigger utility
00:57:19.860 --> 00:57:22.790
where the costs can be
shared and burdens can be lifted
00:57:23.690 --> 00:57:25.960
and thinking about are there
ways that we need to approach
00:57:25.960 --> 00:57:28.490
that from an environmental
and social justice perspective
00:57:28.490 --> 00:57:30.870
for specific communities potentially,
00:57:30.870 --> 00:57:33.470
but generally the
consolidation process altogether
00:57:33.470 --> 00:57:36.910
and how that might
facilitate better service
00:57:36.910 --> 00:57:40.330
and quality for our
environmental justice communities.
00:57:40.330 --> 00:57:42.280
Also heard a little bit about,
00:57:42.280 --> 00:57:43.920
we talked about
affordability a little bit
00:57:43.920 --> 00:57:48.440
and some of the tools to analyze
disadvantaged communities
00:57:48.440 --> 00:57:49.810
and impacts and maybe thinking about
00:57:49.810 --> 00:57:52.600
how Water Division can
continue to educate utilities
00:57:52.600 --> 00:57:55.120
and stakeholders on
what's available there
00:57:55.120 --> 00:57:57.250
so that it can inform all of our work.
00:57:57.250 --> 00:57:59.710
There may be some opportunities there.
00:57:59.710 --> 00:58:01.020
But Steve and Jeff,
00:58:01.020 --> 00:58:03.810
anything else that could
potentially be added
00:58:03.810 --> 00:58:05.910
to our to-do list or
did I kinda get that?
00:58:07.630 --> 00:58:09.980
I think you've
pretty much got it.
00:58:09.980 --> 00:58:14.440
I would say that the two
proceedings that are underway
00:58:14.440 --> 00:58:16.140
that involve the Water Division,
00:58:16.140 --> 00:58:17.930
both the affordability proceeding
00:58:17.930 --> 00:58:21.020
and the low-income water proceeding,
00:58:21.020 --> 00:58:23.150
will have their own
actions, and of course,
00:58:23.150 --> 00:58:26.130
this is not a meeting to
discuss those proceedings.
00:58:26.130 --> 00:58:29.150
It's just come up as being an area
00:58:29.150 --> 00:58:30.840
where we are going forward.
00:58:30.840 --> 00:58:33.700
There will be additional
actions that will be taken
00:58:33.700 --> 00:58:37.410
by the CPUC in the months to come,
00:58:37.410 --> 00:58:41.540
and this has been an
interesting discussion.
00:58:41.540 --> 00:58:43.020
I wish we could go on further,
00:58:43.020 --> 00:58:46.650
but I'm glad that I get to go offline
00:58:46.650 --> 00:58:47.800
for a little while now.
00:58:52.890 --> 00:58:55.830
Thanks, everyone, for
your time and feedback.
00:58:55.830 --> 00:58:57.850
It'll all be considered in the update
00:58:57.850 --> 00:58:59.640
to the ESJ Action Plan
00:58:59.640 --> 00:59:02.215
and the Commission's
intending to release
00:59:02.215 --> 00:59:05.330
a draft of the plan later this spring
00:59:05.330 --> 00:59:08.220
and that'll allow for
additional public comment
00:59:08.220 --> 00:59:09.781
at that time.
00:59:09.781 --> 00:59:10.640
In the meantime,
00:59:10.640 --> 00:59:14.503
if there are any other topics
that didn't get discussed,
00:59:15.450 --> 00:59:17.050
feel free to submit those
thoughts and comments
00:59:17.050 --> 00:59:20.260
to the ESJ Action Plan email
00:59:20.260 --> 00:59:22.560
that was dropped in
the chat at the beginning.
00:59:24.230 --> 00:59:26.130
And Monica, unless you have any other,
00:59:27.400 --> 00:59:31.125
anything else to focus
on then I think we're good-
00:59:31.125 --> 00:59:33.766
Come back for the 2:00
pm session, yeah. (laughs)
00:59:33.766 --> 00:59:35.238
Great.
00:59:35.238 --> 00:59:37.054
Thank you, everyone.
00:59:37.054 --> 00:59:39.321
Thanks, everyone.
Thank you.
00:59:39.321 --> 00:59:41.238
Thank you.