Lancaster City Council Supports Water Rate Reform

The Lancaster City Council has put its stamp of approval on the efforts of a grassroots campaign that seeks to reform the way rates are set by private water companies. The council on Monday gave its unanimous approval for a resolution that calls for the state to reassess its process for determining how for-profit water firms can set rates in areas under their jurisdiction. It also expressed its support for Coalition to Reform Private Water Rates and Regulation, a group comprised of consumer activist organizations across the state. The California Public Utilities Commission is responsible for regulating the state’s 113 investor-backed water and sewer utilities. These companies service 16 percent of Californians; of those, 95 percent are under the jurisdiction of nine water companies, which together generate annual revenue of $1.4 billion, the resolution states. Rates set by these firms can be as much as five times higher than those charged by public utilities companies, according to the movement’s organizers. “The CPUC’s Office of Ratepayer Advocates consistently favors the interests of investor-owned utilities over the interests of California residents and ratepayers,” resulting in exorbitant water rates in areas where utilities are provided by those private companies, the resolution stated.