Editorial: Wrong fix for rising water rates
“Now, officials in some Southern California cities are turning to eminent domain to clamp down on water rates that have been rising throughout the country, in both government-run and privately run water systems. The reasons: new conservation rules, rising costs for employees and investments in neglected infrastructure.
In Claremont, in Los Angeles County, city officials want to purchase the city’s water system from the Golden State Water Co. The company insists that the system is not for sale, so officials there clearly are taking steps to use eminent domain. In Ojai, in Ventura County, the Casitas Municipal Water District board voted last month to move ahead with plans to make a purchase offer to Golden State for its system.
The Casitas district will be floating bonds to pay for buying the water system. In Claremont, the city’s $54 million offer is far below what Golden State and its economist say the system is worth. In both cases, city residents could face enormous debt if these plans succeed.
It’s unlikely that the courts would stop eminent domain in these cases, given that water systems are a public use. But the courts have typically been kind to property owners when it comes time to determine a value for the taken property. In their effort to save a few dollars, angry ratepayers might find themselves in an even “
Orange County Register 22 February 2013.