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Water Rate Increases Proposed For Monterey Peninsula

Final Decision Expected From State On Dec. 14

POSTED: 8:46 am PDT July 18, 2006
UPDATED: 8:53 am PDT July 18, 2006

Residents of the Monterey Peninsula may see an increase in water rates.

California American Water and the state Public Utilities Commission are hosting public hearings on two proposed hikes.

The average family would see a 19 percent increase in water bills beginning in January. In 2008, a 40 percent increase would take effect and a 70 percent rise is planned for 2009.

California American Water wants customers to pay $200 million in preconstruction costs for a desalination plant at Moss Landing and future water projects.

Opponents of the increases said California American is unfairly charging customers for business projects that do not yet exist.

The PUC is expected to make a final decision on the rate hikes on Dec. 14.

A hearing is planned at 7 p.m. tonight at the Monterey Marriot in downtown Monterey.

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