Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

California American Water challenges court ruling

EditorRachael Rajan
Published 02/12/2024, 03:16 PM
Updated 02/12/2024, 03:16 PM
© Reuters.

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.