Despite the torrential rains across the Southland last week, the statewide drought isn’t over yet, and neither are Simi’s water rate hikes.

In December, Ventura County Waterworks District No. 8, which is overseen by the City Council and provides water to about 60 percent of Simi, approved a water rate increase. Now, it’s the other 40 percent’s turn.

Golden State Water Company, the city’s other water purveyor, announced last week it plans to raise rates by nearly 23 percent starting next year—with 16 percent of that increase going into effect this year—to cover the rising costs of water and electricity.

On Jan. 4, Golden State filed an application with the California Public Utilities Commission (PUC) to establish new rates for the Simi Valley customer service area for 2011 and 2012. More than 13,000 Simi homes receive their water from Golden State.

As proposed, Golden State’s rates for residential customers would increase about 6.6 percent in 2011 and an additional 1.6 percent in 2012. But the purveyor also made separate requests of the utilities commission via “advice letters” that would result in a total rate increase of 22.8 percent next year.

The commission approved these two letters this week.

Such a significant spike is needed to recoup the rising costs of water and electricity since 2006, according to Golden State District Manager Ken Petersen, who oversees a region that includes Simi.

Ninety percent of the water that Golden State delivers to Simi customers comes from metropolitan wholesaler Calleguas Municipal Water District. The other 10 percent comes from wells.

“Calleguas has increased their water rates in the past year (to cover their costs). . . . They passed their water rates to take care of that, but we have not,” Petersen said. “That’s what that advice letter does, is it allows us to catch up to the Calleguas Municipal Water District costs of water.”

Petersen said state-mandated conservation efforts have led to decreased sales. Golden State predicts that water sales in 2011 will be 9.6 percent lower than in 2010.

“A lot of our costs remain the same for delivering the water, but we’re delivering less water, so the PUC allows us to recover those costs,” Petersen said.

The additional monies would also be used to fund more than $4.7 million in local capital improvement projects, Petersen said.

These projects include replacing a mile of aging pipeline and installing upgraded equipment at treatment plants to improve efficiency and longevity.

Before submitting the application to establish new rates, the water purveyor filed two “advice letters” with the state on Dec. 28.

According to an information officer at the PUC, an advice letter is a formal request submitted to the PUC to change a utility’s existing rates, tariffs or conditions of service—in this case, a surcharge to make up for increased costs. The request is done outside of a normal rate increase procedure, which undergoes a much more comprehensive review process than an advice letter because it would be establishing a whole new rate if approved.

While the new proposed water rates would not be implemented until 2011, the newly approved advice letters will go into effect in the coming weeks so that Golden State can begin recouping its costs immediately.

Though the letters called for a significant spike in customer’s bills, the PUC representative called them “routine.”

The first letter requested the approval of a surcharge to water rates to recover supply-related costs from September 2006 to August 2009 totaling $1.8 million.

The second letter asked to offset the recent cost increase for purchased electricity and water from Southern California Edison and Calleguas, respectively. The increase in supply costs for this advice letter totals about $1.9 million.

All told, the average Golden State residential customer using 17 CCFs—one CCF equals 748 gallons—will see an increase of about $11.29 per month this year due to the advice letters. And if Golden State’s proposed water rates for 2011 go into effect, that amount will rise to $15.91 per month.

The smaller 1.6 percent increase in 2012 would only raise rates an additional 77 cents for most customers.

The rate increase from the advice letters will remain in effect through 2012.

Golden State customer Shawn Vitto was upset to hear that the water purveyor would be increasing its rates, calling the hike “astronomical.” He said that after the company instituted a water rationing plan that lowers customers’ allocations and charges extra for overages, his bill went from $114 in August to $438 in October.

“How does an average household pay for something like that?” he said. “Where do you get the third income to start paying for all these increases?”

While Vitto’s bill decreased this winter, he expects a big outcry this summer when water use goes up and the costs become even more unmanageable.

“That’s when you’re going to see people freaking out because their bills are over $400 or $500,” he said.

During the yearlong review process for establishing new water rates, the state commission may host public participation hearings in Simi for customers to express their views. The hearings will likely happen sometime this spring, and Golden State will keep customers informed through notices, Petersen said.

In the fall, an administrative law judge will propose a decision that will be available for comment, and the commission will probably make its decision in October.

If approved, the new rates would become effective Jan. 1, 2011.

A discounted rate is available to qualified low-income customers.