Amador County – Amador Water Agency board of directors on Thursday heard a report on a study of its water system consolidation, which in part said the Gravity Supply Line would reduce rates for all water customers.

Bob Reed of The Reed Group recommended that overall rates be raised 5 percent if the agency consolidated its water systems, but the activation of a Gravity Supply Line would reduce costs by a quarter-million dollars a year in electrical costs. In shared costs, he recommended a water-system-wide pumping surcharge per 1,000 gallons. Reed said it could be removed with the activation of the GSL, to reduce all water rates, an average of $5 a month, based on median uses of 7,000 gallons a month. He said “all customers would have lower water bills with this system.”

Reed said a USDA approved grant of $5 million dollars and $8 million dollar, low interest loan for 40 years at 3.25 percent, for the GSL, were part of the rate study. He said the GSL project would cost less than replacing the existing pumps and pipeline in the Central Amador Water Project service area, which would cost an estimated $9.7 million dollars, and probably have higher interest and a shorter term, with no grant.

Without the GSL, monthly bills would be about $20 more per month, and costs would also be lower with a Community Facilities District in CAWP. His recommendation would have debt service charges differ in the service areas.

Single family home rates in CAWP without the CFD would be $64 in the proposal, or with the CFD would be $38. User charges in all single family homes would be $13 and service charges would be $12, with debt services making the difference. Camanche’s total single family home bill would be $31, CAWP (with a CFD) would be $38, La Mel Heighs would be $57 and AWS would be $38.

The benefits of consolidation include a simpler rate structure, and they would support and lead to a more efficient accounting process.

Director Art Toy asked about peak-period, which he thought affected smaller customers more. Reed said single family customers and smaller systems only had about a 1 percent increase in peaking. The peak was based on increased summer irrigation.

Director Robert Manassero asked if the study included PG&E’s plan to add higher peaking rates next year. He said he understood it would impact AWA because “you can’t stop the pumps in July.” Reed said the study did not consider PG&E’s future peak rates.

Director Don Cooper said it is “extremely conservative and I compliment the idea of coming in with only a portion of those reserves. We need to get the public’s confidence back.” Reed recommended $220,000 in reserves until it built to $880,000, and also $160,000 a year for rehab/replacement.

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.