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NCWD: State commission investigating water agency for "potential" illegal water buy

Posted: May 9, 2013 12:09 p.m.
Updated: May 9, 2013 12:09 p.m.

May 9, 2013 (Newhall, Calif.) – The California Public Utilities Commission (CPUC) announced last month that the Castaic Lake Water Agency (CLWA) has been placed under investigation for its potentially illegal purchase of Valencia Water Co. The regional water wholesale agency voted in December to buy all stock in the private water company for $60 million.


According to an April 10 CPUC investigation order, more “investigation is needed in order to fully examine the factual and legal issues raised in…the apparent transfer of control [of Valencia Water Co.] to [CLWA].”


Earlier in the year, Administrative Judge David Long ruled that the acquisition of Valencia Water Co. by CLWA could have negative consequences for local ratepayers.


“It is foreseeable that the transfer of control of a public utility could have significant financial and safety implications for the customers served by Valencia,” wrote Long in his January 31 decision.


The public hearing date is set for May 16 at Santa Clarita City Hall.  There will be a prehearing conference regarding the purchase and the Valencia Water Co. rate increase held at 9:30 a.m. and two Public Participation Hearings scheduled for 1:00 p.m. and 7:00 p.m. All hearings are open to the public.


Local Water District Objects to Purchase

The CLWA Board voted to approve the purchase over the objections of numerous stakeholders, including Newhall County Water District.


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