LETTER TO THE EDITOR: Golden State Says No to Claremont's Offer to Buy Them Out

The following statement by Denise L. Kruger, Senior Vice President – Regulated Utilities, of Golden State Water Company, is an unedited response to the City of Claremont's offer to purchase Golden State Water Company's Claremont system.

"Without any public review, the City of Claremont has made an unrealistic offer of $54 million to purchase Golden State Water Company’s local system. The most basic review of the letter reveals that it is nothing morethan the first step in an expensive and financially risky eminent domain takeover process. 

The city’s position suggests that they do not understand the true costs or financial responsibilities associated with providing reliablequality water service. A $54 million offer does not at all account for the quality of the infrastructure, the value of the water rights or reflect estimates made by a third party more than six years ago.   In 2006, the League of Women Voters suggested the value of the system could be $100 million and noted that it would cost taxpayers almost $200 million to finance the acquisition.   The actual value of the system today is significantly higher.

Clearly this offer is not serious, because the city knows that the system is not for sale.  Despite promises of transparency and accountability, Claremont officials have refused to disclose documents that are the basis for this action. They have obviously decided, without public discussion, to begin eminent domain proceedings, which ultimately would obligate taxpayers to hundreds of millions in water taxes.  Customers will pay more for a lower level of service.

Golden State Water Company will not be distracted by these actions and will continue to provide its Claremont customers with reliable,quality water service in a transparent and accountable manner."