header image

[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather


 
Calendar
Today in
S.C.V. History
September 19
1863 - Gen. Edward F. Beale loans money to A.A. Hudson and Oliver P. Robbins to erect toll house in Newhall Pass [story]
toll house


Purveyor needs to recover $5 million revenue shortfall that resulted from lower water use after asking customers to conserve.
| Tuesday, Jul 19, 2016

Valencia Water Co., one of the valley’s four water retailers, is proposing an increase in one area of its rate structure to recover a more than $5 million decline in revenue due primarily to a significant drop in water sales caused by increased conservation over the past year.

As currently proposed, the increase in the Revenue Adjustment Surcharge will result in a temporary increase of approximately $8.54 per month for the typical Valencia Water Company customer. The increase, if approved by VWC’s board of directors in a special public meeting on Sept. 1, will remain in effect as long as needed to recover the revenue shortfall.

Even with the temporary increase, Valencia Water Company rates will continue to be the lowest in the Santa Clarita Valley.

valenciawaterco_logo_vwc“Valencia Water Company, like any water agency, requires a minimum level of revenue to operate and maintain its system. Unfortunately, when water sales decline by 20 percent because of extended and state-mandated conservation, we must adjust our rates to ensure we have sufficient revenue to maintain a reliable and high-quality water delivery system,” said VWC General Manager Ken Petersen.

The Revenue Adjustment Surcharge provides financial stability to VWC when revenue is insufficient to meet expenses due to unforeseen revenue shortfalls, and assists with funding water conservation programs mandated by state law.

A public meeting of the Board of Directors to consider the surcharge increase will be held at 6:30 p.m. Thursday, Sept. 1, at Valencia High School Multi-Purpose Room, 27801 N. Dickason Drive, Valencia, Calif. If approved by the board, the new surcharge rate will go into effect Oct. 1. This meeting was originally scheduled for June, but was postponed to ensure all VWC customers are receiving notification of the meeting. VWC officials anticipate recovering the shortfall within a year, depending on the pace of water sales.

There are no changes to general metered rates or monthly service charges.

Before considering an increase in the Revenue Adjustment Surcharge, VWC officials took significant efforts to reduce costs wherever possible without compromising the integrity and reliability of the water system.
Petersen commends customers for extraordinary water conservation during California’s extreme extended drought, which is now entering its fifth year.

“We recognize, however, the unique situation that extended, mandated water conservation creates for water agencies like Valencia Water Company. We can usually manage a short-term campaign to save water, but a prolonged and dramatic reduction in water sales resulting from multiple years of exceptional drought ultimately has had a very significant impact on our operating revenues,” Petersen said. “Valencia Water Company oversees a very reliable and safe water system – we simply need a minimum level of revenue to keep it safe and reliable.”

VWC officials are reaching out to many large-volume water users to review the surcharge adjustment and to assist them in improving their water-use efficiency efforts. Additional information about the proposed increase is available on VWC’s website: www.valenciawater.com.

Key Facts About the Proposed Revenue Adjustment Surcharge

* General metered rates do not change.

* Monthly service charges do not change.

* Valencia Water Company rates will remain the lowest in the Santa Clarita Valley.

* The only proposed change is to the Revenue Adjustment Surcharge. Implemented in 2011, the surcharge provides financial stability to VWC when revenue is insufficient to meet expenses due to unforeseen revenue shortfalls.

* VWC has experienced a 20 percent decline in revenue due to the extended, mandated water conservation required because of extreme drought conditions in California. Voluntary conservation of 20 percent began in 2014, mandatory conservation of 24 percent began in 2015.

* As currently proposed, the change in the surcharge will result in an increase of approximately $8.54 per month for the typical VWC customer. This equates to about 42.7¢ per billing unit (748 gallons) or roughly 1/17th of 1¢ per gallon used.

* The increase is needed to recover more than $5 million in revenue shortfalls that have already occurred.

* The increase will remain in effect as long as needed to recover the revenue shortfall already experienced by VWC. The shortfall is expected to be recovered in about one year.

* Prior to the proposed increase, VWC took several cost-saving steps to reduce the size of the proposed adjustment surcharge increase. Cost-efficiency measures taken over the past year and a half include:

o Adjusting and optimizing operations to take advantage of lower power rates during non-peak hours;

o Implementation of an automatic meter reading system conversion plan;

o Digitization of plans, maps and other materials to avoid paper and storage costs;

o Purchase and use of more time-efficient laboratory equipment;

o Mobile computers for field staff allowing for digital communications and data collection;

o Purchase and use of valve exercise equipment and the expansion of the valve maintenance program; and,

o Aggressive pursuit of insurance recovery for property damage from mainline breaks, reducing repair costs paid by customers.

 

About Valencia Water Company

Valencia Water Company serves approximately 97,300 people in the Santa Clarita Valley, including Valencia, Stevenson Ranch and portions of Newhall, Saugus and Castaic. Valencia supplies its customers with high-quality water supplied from local wells and from imported supplies. Valencia has served the Santa Clarita Valley since 1965. Valencia Water Company can be reached at: www.valenciawater.com or 661-294-0828.

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

2 Comments

  1. Deb says:

    Seems like punishment for a job well done. Frustrating.

  2. Hardin Rich says:

    Unite and let the Valencia Water Company know how you feel.

Leave a Comment


SCV NewsBreak
LOCAL NEWS HEADLINES
Thursday, Sep 19, 2024
COC Receives $300,000 NASA Grant to Expand Student Access to STEM Fields
The College of the Canyons Aerospace and Science Team has received a $300,000 grant from NASA’s Mentoring and Opportunities in STEM with Academic Institutions for Community Success program.
Thursday, Sep 19, 2024
Sept. 26: Community Invited to David March Park Expansion Groundbreaking
One of the city of Santa Clarita community’s most cherished parks, David March Park is set to expand, Thursday, Sept. 26, at 10 a.m., 28310 North Via Joyce Drive, Santa Clarita, CA 91350 with a groundbreaking ceremony.
Thursday, Sep 19, 2024
COC Board of Trustees Appoints Carlos Guerrero to Area 5 Seat
The Santa Clarita Community College District Board of Trustees appointed Carlos Guerrero to fill the board seat in Area 5, effective immediately, at its special Wednesday, Sept. 18 meeting.
Keep Up With Our Facebook

Latest Additions to SCVNews.com
The College of the Canyons Aerospace and Science Team has received a $300,000 grant from NASA’s Mentoring and Opportunities in STEM with Academic Institutions for Community Success program.
COC Receives $300,000 NASA Grant to Expand Student Access to STEM Fields
Bring along a furry friend to the Santa Clarita Child & Family Center's Purple Walk Domestic Violence Awareness 5K on Saturday, Oct. 5 from 8-11 a.m. at the Center’s main facility 21545 Centre Pointe Parkway, Santa Clarita, CA 91350.
Oct. 5: 5K Purple Walk Dogs Against Domestic Violence
Written and directed by Braddon Mendelson, produced by Heather Mendelson, and co-produced by Olive Branch Theatricals and Noisivision Studios, "Provenance" will take stage at the The MAIN, 24266 Main Street, Santa Clarita, CA 91321, Friday through Sunday, Sept. 27-29.
Sept. 27-29: Braddon Mendelson to Present ‘Provenance’ at The MAIN
The Master's women's volleyball team opened Great Southwest Athletic Conference play on the road in Prescott, Ariz. on Wednesday, Sept. 18, defeating the Embry-Riddle Aeronautical University Eagles in straight sets 28-26, 25-22, 25-18.
TMU Women’s Volleyball Opens Conference Play with Road Win
College of the Canyons freshman Sahya Kitabatake shot a two-under-par round of 70 to tie for medalist honors while helping the Cougars place fourth at the Western State Conference tournament at Sterling Hills Golf Club in Camarillo on Monday, Sept. 16.
Kitabatake Medals, Canyons Women Take Fourth at Sterling Hills Golf Club
One of the city of Santa Clarita community’s most cherished parks, David March Park is set to expand, Thursday, Sept. 26, at 10 a.m., 28310 North Via Joyce Drive, Santa Clarita, CA 91350 with a groundbreaking ceremony.
Sept. 26: Community Invited to David March Park Expansion Groundbreaking
SRD Straightening Reigns, a therapeutic organization offering equine assisted psychotherapy, has been awarded $278,870 from the California State budget to improve mental health services.
California Awards $278,870 in Funding to SRD Straightening Reins
The Santa Clarita Community College District Board of Trustees appointed Carlos Guerrero to fill the board seat in Area 5, effective immediately, at its special Wednesday, Sept. 18 meeting.
COC Board of Trustees Appoints Carlos Guerrero to Area 5 Seat
California Institute of the Arts alums Alyssa Dressman Lehner and Clara Plestis captured Emmy Awards at the 76th Primetime Creative Arts Emmy Awards.
Two Calartians Win 2024 Creative Arts Emmy Awards
Valencia High School's Choir will hold a fall concert, "Broadway, Movies & Media" at 7 p.m., Thursday, Sept. 26 at 7 p.m. and Friday, Sept. 27, 7 p.m. at the Saugus High School Theatre, 21900 Centurion Way, Santa Clarita, CA 91350.
Sept. 26-27: Valencia High Choir Presents Fall Concert ‘Broadway, Movies & Media’
As my wife, Virginia, and I stroll through our magnificent city, we admire the beautiful paseos and the expansive open spaces, but what really catches our eye, is the diverse works of art at every turn.
Bill Miranda | Santa Clarita Arts, a Journey Through Creativity
The California Department of Public Health is encouraging all Californians to get vaccinated this season to protect themselves and loved ones from respiratory viruses.
CDPH: Stay Up to Date on Vaccines
The Friends of Santa Clarita Public Library in collaboration with Santa Clarita Valley Libraries will have a silent Book Auction beginning at 9 a.m. Monday, Sept. 30, through 10 a.m. on Monday, Oct. 7.
Sept. 30: Public Libraries to Host Silent Book Auctions
1863 - Gen. Edward F. Beale loans money to A.A. Hudson and Oliver P. Robbins to erect toll house in Newhall Pass [story]
toll house
The Counties of Los Angeles and San Bernardino today announced the opening of multiple joint Local Assistance Centers to assist residents impacted by the Bridge and Line Fires.
Joint Assistance Centers Open for Residents Impacted by Bridge, Line Fires
Valencia Gynecology Associates, owned by longtime Santa Clarita Valley OB-GYN physician Don Nishiguchi, MD, has joined the Henry Mayo Newhall Hospital network. 
Valencia Gynecology Assoc. Joins Henry Mayo Network
JCI Santa Clarita is proud to announce the upcoming Veteran’s Resource Fair, scheduled to take place on Sept. 21 at William S. Hart Park. 
Sept. 21: JCI Invites All Veterans to Upcoming Resource Fair
A "friendies" field tournament  is being  hosted by the Saugus Instrumental Music program, with support from Valencia High, later this month. 
Sept. 21: All Valley Showcase Comes to Valencia High
Public, member-supported 88.5 FM The SoCal Sound, Southern California’s leading Triple-A (adult album alternative) format radio station has announced the lineup for its inaugural “Year-End Bash” taking place on Saturday, Dec. 7.
Dec. 7: CSUN Owned 88.5-FM The SoCal Sound Announces “Year End Bash” Lineup featuring Ben Gibbard
The Master's University cross-country teams continued their successful 2024 campaigns with strong finishes at the BIOLA Invitational on Friday, Sept. 13 at Craig Regional Park in Fullerton, Calif.
TMU Women Win, Men Place Second at XC Invitational
Sheriff’s Department Announces New Law Enforcement Gang Policy
LASD Announces New Policy on Law Enforcement Gangs
The biology department at California State University, Northridge has stayed committed to promoting STEM research carried out by K-12 students and teachers in the Los Angeles Unified School District.
CSUN Student Research Journal Celebrates 28 Years of Inspiring Scientific Imagination
Did you know the SCVEDC has an interactive, online tool that provides themed virtual tours of the amazing features the community has to offer? 
SCVEDC Offers Virtual Business Tours of the Santa Clarita Valley
California Institute of the Arts alum and visionary filmmaker Tim Burton (Film/Video 1979) was honored with the 2,788th star on the Hollywood Walk of Fame.
CalArts Alum Tim Burton Receives Star on Hollywood Walk of Fame
SCVNews.com