UCAN VICTORIOUS IN CITY WATER CASE!
Today, a San Diego Superior Court judge ruled that UCAN, the Utility Consumers' Action Network, may include an insert in San Diego City water & sewer bills. As a result of the court's ruling, UCAN will, in the future, have a right to connect directly to San Diego consumers through City bills and will examine and audit the City Water Department operations and rates on behalf of consumers.
In the last 24 years, UCAN has successfully fought hundreds of utility rate demands, saving San Diego consumers tens of billions of dollars in proposed rate hikes. UCAN was created in 1984 when it was granted similar billing access to SDG&E bills. Within the first year of its existence, more than 80,000 San Diegans joined UCAN and the organization raised almost $250,000. Today, Superior Court Judge Ronald Prager ordered that UCAN be allowed to put inserts and notices into city water bills inviting water customers to join the not-for-profit organization and support UCAN's monitoring of Water Department policies.
Importantly, the ruling provides for an independent third-party review of Water Department plans, rate hikes and billing practices that will be funded by UCAN members, and will not come at a cost to ratepayers.
The court decision is historic because it makes UCAN the first utility group in the United States to be given access the the billing statements of a municipal water department.
The City opposed UCAN's access to the bills. It sought to give the privilege to the San Diego Taxpayers Assn. The court stated:
" Plaintiff presented evidence indicating that the entity put forward by defendant City of San Diego ("City"), San Diego County Taxpayers Association ("SDCTA"), is not a 501(c)(3) organization. (Riley Dec., Exh. 1, Lutar Dec., Exh. 1, and Shames Dec., ¶13 and Attachment B.) The City presented conflicting evidence as to which of the two entities would be involved, as one letter refers to the SDCTA (Riley Dec., Exh. 1 and Lutar Dec., Exh. 1) while another refers to San Diego Taxpayers EducationalFoundation ("SDTEF"). (Riley Dec., Exh. 2 and Lutar Dec., Exh. 2.) Furthermore, the City presented no evidence that SDTEF has any experience with water or utility issues or has anyone on its staff that does. As to the issue of its independence, Plaintiff presented evidence that SDCTA engaged in a fundraiser with entities like San Diego Gas & Electric ("SDG&E") while it was in the process of reviewing SDG&E's proposed powerline project. (Id. at ¶¶14, 19 and Attachment B.) The City presented no evidence to dispute this. On the other hand, the City presented no evidence to support its contention that UCAN would not be a suitable organization. Finally, Plaintiff presented evidence that UCAN meets the above noted criteria. (Shames Dec., ¶7.) In addition, UCAN has over 20 years of experience in this field and has adequate funding to take on this task. (Id. at ¶¶ 3, 7, and 20.)
IT IS SO ORDERED. "
"Finally, San Diego city consumers will get some good news when they open their water/sewer utility bills" says Executive Director, Michael Shames. "And we will pledge that 100% of the money that those consumers send to UCAN will be used to hire experts to audit the City's operations and watchdog their activities."
UCAN has been granted access to up to three billing inserts per year. The City sends its bills to customers on a bi-monthly basis.
Click here for a brief Union Tribune story on this release published January 22. 2008
