Count Dan Benedetti as one of those unusual people who actually read the recent insert in his San Jose Water Co. bill. The San Jose man was shocked by what he saw. The utility is seeking permission to raise rates by a total of 44 percent over the next three years.

“I typically don’t read those,” said Benedetti, 30, who manages contracts for his employer. “But this was ridiculous. It’s kind of hard to swallow that ‘Hey, we didn’t know we needed these upgrades. And boom, we’re just going to pass the expense down to you.’ “

As a San Jose Water Co. customer and a professional rabble-rouser, I have sympathy for Benedetti’s viewpoint. My water bill has been running about $100 a month. I’m not eager to pay an additional $44. That’s more than six times the current rate of inflation.

So I started looking into it. The notice from the 145-year-old water company said the rate increase was needed because of higher operating costs and the need to repair aging pipes, pumps and tanks.

But that’s not all this is about. Like other water providers, the utility is seeking a rate increase partly because people are conserving water. Its sales have fallen while costs remain fixed. To make up the difference, the water company wants to charge more per cubic foot.

Confusing? Think of it this way: The government guarantees a man who sells you bread the right to keep one slice per loaf. If in a given year, you buy only 30 loaves, rather than 35, his take of slices declines by nearly 15 percent. He wants to make it up by asking for a slice and a heel from each loaf (see more at www.sjwater.com, under “value of water”).

High fixed costs

“We certainly understand customers’ confusion over that,” said John Tang, the company’s director of government relations. —‰’Why should my water bill go up when I’m conserving?’ Water utilities tend to be a very high fixed cost business. And the fixed cost component doesn’t go down.”

Inside the company’s application for the rate increase to the California Public Utilities Commission, a few other items made me stand up and take notice. For instance, the company says it faces $6 million in additional pension costs.

For most employees, the water company has moved to a variety of 401(k), or “defined contribution” plan. But for a select group of veteran executives, it sweetened the pot of guaranteed pensions, allowing them a bump in how much they can accumulate in a year.

The water company says it needs to do this to remain competitive for talent. I know W. Richard Roth, the CEO, who earns a base salary of $625,000 yearly. He’s a good guy. But as a customer, I wonder what portion of his golden years I should pay for.

Staff increase

Finally, a staff increase is built into the application. The water company is seeking to add 23 positions, which would add $2.7 million to its annual costs. The PUC’s division of ratepayer advocates says this merits a “thorough review,” particularly because of the company’s claim that it has excess capacity.

Altogether, it makes me ready to attend the public meeting on the rate increase, which is scheduled for 7 p.m., May 21 at the Corinthian Event Center — upstairs at the San Jose Athletic Club — at 196 N. Third St. in San Jose.

I see it like this: I’m ready to risk a headache by enduring a couple of hours of talk about forecast methods, tax benefits and rate tiers. In the long run, it might save me a few bucks.

Contact Scott Herhold at sherhold@mercurynews.com or 408-275-0917.