Marysville council opposes Cal Water rate increase, directs staff to assemble expert review team

The Marysville City Council on Oct. 27, 2025, voted unanimously to direct city staff to assemble a team of experts to analyze and respond to California Water Service Group’s proposed water rate increase and to pursue additional information about the company’s Marysville-specific finances.

Council members and public speakers said Marysville’s water rates run two to three times higher than nearby communities and that a proposed roughly 33% increase would worsen affordability pressures for many residents. The council’s action asks staff to work with consultants and regional partners to gather financial records, compare cost drivers and explore alternatives including regionalization or other service arrangements.

The motion reflects residents’ and elected officials’ concerns that water costs are harming low-income households and local businesses and seeks facts to support formal comments to the California Public Utilities Commission (CPUC) during the rate-case process. City Manager Jim Shattuck was directed to assemble the team and coordinate with named experts and regional partners to pursue balance sheets and income statements for Marysville and to engage with California Water Service (Cal Water) about the company’s proposal.

Mayor Branscomb framed the discussion by pointing to comparative figures and company financials he had reviewed. “I characterized the proposed rate increase on these facts as an insult to the city,” he said, arguing Marysville customers already pay far more than neighboring jurisdictions. The mayor and other council members summarized consultant data showing Marysville pays markedly more than Live Oak, Gridley, Olivehurst, Yuba City and Chico — in some comparisons nearly three times what Live Oak pays for similar consumption.

Council Member Marjorie Rollins said private water companies are “primarily accountable and beholden to their stockholders, not the people they serve,” and urged the city to protect residents. Several public speakers, including Yuba County Supervisors and the chairman of the Yuba Water Agency, urged the city to pursue a regional or municipal solution and offered the water agency’s technical and planning assistance.

Representatives of Cal Water attended and asked for an opportunity to return and present Marysville-specific financial data. Kevin McCusker, director of government and community affairs for California Water Service, described the CPUC process for the proposed increase and said the company seeks to recover costs and secure an approved return — but that the proposal is the beginning of a regulatory process that includes hearings, intervenors and a proposed decision by an administrative law judge before the full commission acts. “This is the beginning of the process, not the end of the process,” McCusker said.

Public commenters described how higher utility costs affect household budgets. Susan Townsend, a longtime Marysville resident and former legal-services director, said many seniors and low-income residents must cut essential spending when utilities rise. “A 33% increase over three years … that’s not to be expected. It’s just not right,” she said.

The motion directs staff to: assemble a team of experts (the motion named consultant Dan Bergman and proposed involvement of Charlie Matthews of the Yuba Water Agency), obtain Marysville-specific balance sheets and income statements (five years plus trailing 12 months), cooperate with the city’s consultant-led analysis comparing neighboring providers, and report back to council with recommended next steps. The city held one brief roll-call vote; Council Members Rollins, Hudson, Gilchrist, Vice Mayor Petacavoli and Mayor Branscomb voted yes. The motion’s mover was a council member identified in the transcript as Stuart; a second was recorded but not named in the meeting record.

Kevin McCusker told the council written protests or comments to the CPUC may be filed at any time during the rate-case process and that the earliest CPUC vote on the matter would likely be in December. Council members and county supervisors said the city will consider filing formal opposition with the CPUC and will coordinate attendance at upcoming administrative hearings.

City Manager Shattuck said staff will verify what Cal Water records are publicly available and will involve legal counsel as needed to obtain the Marysville-specific accounting Cal Water aggregates with other districts. The council’s direction includes outreach to regional partners and the city’s consultant to examine capital expenditures, system-specific liabilities and other drivers of higher per-unit costs.

The council asked staff to return with a timetable for analysis and with any recommended formal filings to the CPUC. The action does not itself change rates; it directs a review and further engagement with Cal Water, the Yuba Water Agency and consultants to build a factual record and consider municipal or regional alternatives.