Tuesday, May 6, 2008

Thanks, City of Claremont !

From Robert Lawrence, the Maintenance Supervisor:


Due to work being done by the City of Claremont, there will be

No water supply at Ducey Gym & Aquatic Center

Thursday May 8th

9AM - 3PM

Exit question: Still want water to be owned be publicly-owned?

10 comments:

Anonymous said...

Claremont's water is actually privately owned, by Golden State Water Company.

Charles Johnson said...

Actually, that isn't so anonymous.

Golden State Water Company is a "public" utility company owned by American States Water Company.

So, no, it isn't privately owned.

Anonymous said...

So private firms don't do maintenance?

Assuming you are right and they don't: is that a good thing?

I'd like to hear your logic on this one.

Anonymous said...

Let me ask you this, who gives you better, more reliable service, the water company, or the cable company? The electric utility, or your cell phone provider?

Also, what happened to not making blog posts or responding to comments?

Anonymous said...

Charles, this is the original Mr. Anonymous. Golden State Water Company and American States Water Company are both private companies.

They both have to have rate changes, etc. approved through the state government, because it's a regulatory necessity, but they are NOT government agencies. Stock in their parent company is traded on the market.

For years in Claremont, city leaders have been arguing over whether the city should seize the private water company by eminent domain. It's quite a political issue.

That said, you're correct that nearly all water is owned and controlled by the government. But not Claremont's, and it actually burns the political class in town.

Aditya Bindal said...

Anonymous,

Water privatization in Claremont uses the French, not British Model. The difference being that the City of Claremont still owns the assets. The private water company is given a lease to operate and maintain the infrastructure. Citizens still have to go through the City for water.

In the British Model, private companies establish and own their own infrastructure and assets. Multiple private water companies can operate. Transactions take place directly between the consumer and the company.

The government still owns the pipes and machinery in Claremont. They simply give a contractual monopoly to a private firm.

Anonymous said...

Really? What are the terms of the lease agreement? Will it ever expire? this city staff report from last month appears to indicate that Golden State actually owns the infrastructure.

http://www3.ci.claremont.ca.us/pub_weblink7/PDF/5p25mf55lpfmr3453ukibe55/79/Agenda%20040808.pdf

Anonymous said...

Found this link too:

http://www.ci.claremont.ca.us/ps.topics.cfm?ID=1800

Aditya Bindal said...

Oops,

The SEC 10-K Filing for ASWC said that the mode of operation was through concessions.

I should have scrolled down for the exceptions on City of Claremont and Town of Apple Valley.

Sorry for the negligence. Right you are.

The cause of all the confusion is two subsidiary companies: GSWC and ASUS. ASUS gets the concessions, GSWC owns the assets (not in all cases). GSWC is regulated by the California Public Utilities Commission.

"The businesses of GSWC and CCWC are substantially free from direct and indirect competition with other public utilities, municipalities and other public agencies within their existing service territories."

Most of the holding company engages in concessions, not private ownership. Even in the city of Claremont, the entire system is not privately owned:

"imported water wholesalers, such as the Metropolitan Water District of Southern California (“MWD”) and the Central Arizona Project (“CAP”), may not always have an adequate supply of water to sell to us."

"GSWC has additional reservoir capacity in its Claremont system, through an exclusive right to use all of one 8 million gallon reservoir, one-half of another 8 million gallon reservoir, and one-half of a treatment plant’s capacity, all owned by Three Valleys Municipal Water District."

Anonymous said...

Water is confusing!