CLAREMONT OFFICIALS: Water Company Tries to Deceive Ratepayers

The City of Claremont and its water supplier Golden State Water Company, continue to battle over the future of the city's water system.

Claremont residents recently received letters signed by Claremont City Manager Tony Ramos, rebutting a mailer reportedly sent out by the private water supplier.

According to Ramos' letter, Golden State is, "urging ratepayers to review an 'independent' economic study about the City of Claremont’s potential acquisition of the Claremont Water System. To be clear, there is nothing 'independent' about the study."

The water company and the city have been battling over control of the water system. An announcement by the water company that they were seeking to again raise rates prompted the city to move to purchase the water delivery system, city officials have said.

Golden State insists the city is making a mistake that will prove costly and has rejected a $54 million offer by the city to buy the water delivery system.

Below is the entire letter from Claremont's City Manager.

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Once again Golden State Water Company has been sending campaign mail to Claremont residents, this time urging ratepayers to review an “independent” economic study about the City of Claremont’s potential acquisition of the Claremont Water System. To be clear, there is nothing “independent” about the study. It was commissioned and paid for by Golden State, and thus it says exactly what the for-profit company wants it to say.

As you are aware, the City Council unanimously approved an offer to purchase the Claremont water system from Golden State Water Company for $54 million. The City’s purchase offer was based on a comprehensive appraisal of the fair market value of the water system that was prepared according to state law. Unlike the study commissioned by Golden State Water, the city’s appraisal was prepared by an internationally based engineering firm that specializes in evaluating public utilities such as the Claremont system. Golden State Water Company rejected the city’s offer and is now misleadingly calls the offer a “takeover.”

In a further attempt to mislead Claremont ratepayers, Golden States mailer suggests that the media outlets are questioning the city’s purchase offer. But in fact the opposite is true. Just recently the Inland Valley Daily Bulletin supported the City’s potential acquisition of the water system stating, “Claremont should buy the water company’s local assets,” and “the time is right for the City of Claremont to buy out the private company.”

Should the city acquire the Claremont system, we would join the vast majority of cities that are served by a municipal water system and have a meaningful voice in their water future. That translates into much more than rates. It pertains to water conservation efforts, environmental issues, emergency preparedness, water quality, customer service complaints, and many other critical quality-of-life issues. Most importantly all decisions regarding the water system should be made in Claremont as part of an open public process as required by law.

Golden State Water Company Repeatedly asserts its willingness to work with Claremont residents regarding water rates yet the company continues to press forward with its rate increase applications. While some water providers have chosen not to raise rates during tough economic times, Golden State Water Company has sought substantial rate increases, including surcharges on those who conserve water. As long as Claremont is served by Golden State Water Company, ratepayers will be subject to never-ending rate hikes controlled by the PUC process in San Francisco. The Company’s recent mailer is just another tactic in its aggressive campaign to protect its water monopoly in Claremont. The city wants to change that and wants to put decisions about local water issues in the hands of the local ratepayers.

The City is continuing to carefully evaluate alternatives to ensure our community has a voice in its water future. My office will continue to keep you informed of the city’s efforts. Please visit the city’s website at http://www.ci.claremont.ca.us/index.cfm for the latest information on this matter.

Tony Ramos
City Manager