Claremont Moves Toward Purchase of Water System

Claremont's staff recently inspected the city’s water system in anticipation of a possible purchase from Golden State Water Company, City Manager Tony Ramos recently told the City Council.

Staff has been working with a consulting team to put together a water system acquisition appraisal together, Ramos told the council during the Sept. 11 meeting.

A report and the appraisal will be brought to the council at the Oct. 23 meeting, Ramos said.

The city has already scored a large victory with the passing of SB 1364, introduced by State Senator Bob Huff (R-Diamond Bar,) Ramos said. The bill will require water companies to alert ratepayers they have applied to increase rates and their affect on customers.

It will also requires subsidiarys or affiliates of a water company/corporation that serves 2,000 customers or more to open their books to the Public Utilities Commission, according to the bill.

The city has been fighting against a proposed by the Golden State Water Company that provides water services to Claremont, city officials said.

“Recently Golden State Water filed an application with the PUC for a 24.54 percent rate increase in 2013,” Mayor Larry Schroeder wrote in a recent opinion piece provided to several news publications. “Included in their application are additional increases of 2.35 percent in 2014, and 2.94 percent in 2015. Like clockwork, every three years Golden State Water executives submit an application to raise rates.

“The City of Claremont has long opposed Golden State Water's never-ending applications for water rate increases. While their latest application is in the midst of review, Claremont has been working with other cities that are subject to Golden State Water's ratepayer abuse. Experience tells us that increases are rarely, if ever, denied out-right by the (Public Utilities Commission). That being said, we have and will continue to fight against the unjustifiable rate increases by Golden State Water. Claremont resident deserve nothing less.”

Golden State Water denies the city’s allegations and suggests the city is misusing the taxpayer’s money.

“Our water system is not for sale,” Denise Kruger, Senior Vice President of Golden State Water, wrote in a letter addressed to customers. The letter was dated the same Tuesday as the City Council meeting. “However, in the past year, City officials in Claremont have been spending your money on a plan to use Eminent Domain to seize the water system and create a City water agency.

“Customers pay less than a penny per gallon for water that is treated and delivered to your home,” Kruger wrote.

According to the letter, based on the current rates, customers with 5/8-inch connections pay $58.74 per month for 9,724 gallons of water while owners of larger lots and 1-inch connections pay $132.44 per month and use 19,448 gallons of water.

“Golden State does not charge connection fees or any additional charges for service calls or water-related inquiries,” Kruger wrote. “Customer bills also include a City-mandated 5.5 percent Claremont Utility Tax.”

The letter tells customers that a city take over would mean higher costs for a lower level of service.

A pdf of the entire letter sent out to customers is included with the article.

Claremont’s City Council meets at 6:30 p.m. at the City Council Chamber, 225 W. Second St.