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Cal-Am wants residents to pay FLOW legal fees |
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Written by Press Banner |
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Friday, 23 November 2007 |
Felton Friends of Locally Owned Water is opposing an attempt by California American Water to levy a surcharge on its Felton customers to pay $67,000 to FLOW, as ordered by the state Public Utilities Commission ...
Felton Friends of Locally Owned Water is opposing an attempt by California American Water to levy a surcharge on its Felton customers to pay $67,000 to FLOW, as ordered by the state Public Utilities Commission.
The PUC awarded the money to FLOW to pay legal fees as an intervener in a recent Cal-Am rate-increase case. Cal-Am then filed to charge Felton customers to make up the amount.
The filing “represents a blatant attempt to intimidate and punish Felton FLOW,” wrote FLOW legal committee chairman Jim Mosher in a letter to the PUC.
Instead, Mosher asked that the PUC order the surcharge to be spread over all Cal-Am districts that will benefit from FLOW’s contributions to the rate case deliberations. Cal-Am operates in 50 communities, including part of the Monterey Peninsula.
Cal-Am’s Felton system is the subject of an eminent domain suit filed by San Lorenzo Valley Water District at the behest of a majority of Felton residents. The company has resisted the acquisition.
Meanwhile, Cal-Am’s ultimate corporate parent, RWE Aktiengesellschaft, has postponed its planned spinoff of American Water, the subsidiary that owns Cal-Am, because of “the currently unfavorable conditions in the U.S. capital market.”
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