PACIFIC GROVE, Calif. - California American Water (NYSE:AWK) is contesting a recent court decision that could potentially change the water supply management in Monterey County. The company has filed an appeal against the Superior Court's ruling from December 11, 2023, which overturned a previous resolution by the Monterey County Local Agency Formation Commission (LAFCO). This resolution, dated December 2021, denied the Monterey Peninsula Water Management District (MPWMD) the authorization to become a retail water supplier.
The disputed LAFCO resolution is a critical step for MPWMD to supply water to Monterey customers. If the Superior Court's decision remains, the issue may be sent back to LAFCO for further consideration. LAFCO has also filed a similar appeal.
Evan Jacobs, Senior Director of External Affairs for California American Water, stated, "The court set aside the resolution and allowed MPWMD to seek further review by LAFCO, but no additional review is necessary because the facts are the same." He added that MPWMD lacks the experience and capacity required to operate the complex water system and that their proposal would burden Monterey residents.
This legal challenge follows the Measure J ballot initiative, approved in 2018, which aimed to evaluate the feasibility of MPWMD acquiring California American Water's Monterey assets. Proponents of Measure J anticipated a quick and cost-effective transfer. However, over five years, MPWMD has reportedly spent over $3 million on related legal and consulting fees.
Jacobs expressed his hope that MPWMD would prioritize securing new water supplies and protecting the local ecosystem, emphasizing the mounting legal costs as California American Water continues to provide reliable service in the area.
California American Water has been operating the local water system for over 60 years, employing around 100 people in the county, ranging from licensed operators to water quality experts.
The parent company, American Water (NYSE: AWK), is the largest regulated water and wastewater utility in the United States, serving over 14 million people.
The information in this article is based on a press release statement.
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