There's possible big savings for Monterey Peninsula ratepayers as Cal-Am continues to move forward with a new water supply plan. The group of mayors from each city impacted by the water plan hired two outside consultants to double check their math and if it's right Cal-Am customers could save over $100 million dollars.
Together the Monterey Peninsula Regional Water Authority comprised of all the mayors wanting to find a solution to the water shortage, and the Peninsula Water Management District that's designated to help Cal-Am operate their water plan, ponied up $25,000 to pay for financial consultants to crunch numbers.
The Water Authority wants to use $100 million in public money to help fund the three-pronged Cal-Am proposal which includes a smaller desal project.
Carmel Mayor Jason Burnett said the money would most likely come from the Water Peninsula Management District, most are also Cal-Am customers.
So really it's just shifting the added amount for the project from one bill to another. Burnett said the public agency interest rate is much less than Cal-Am's.
Cal-Am has over 100,000 people in their service area and the peninsula mayors believe the public contribution could save up to $124 million which saves customers about $1,000.
Cal-Am said it's meeting with the peninsula mayors and is open to local government involvement in the project. The public funding from the water management district will be presented to the state Public Utility Commission next month.
The Water Authority is looking for public input on the proposal to shift the burden from Cal-Am customer bills to the Water Management District.
There's a meeting this Thursday at Monterey City Hall at 7:00 p.m.