header image

[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Calendar


State water wholesaler needs CPUC approval before it can take over Valencia water retailer, according to ruling.
| Friday, Feb 1, 2013

valenciawaterco_logoCiting state law and a recent complaint by the Santa Clarita Organization for Planning and the Environment, an administrative judge for the California Public Utilities Commission said the Castaic Lake Water Agency must ask permission for a recent utility sale.

Thursday’s ruling said the Castaic Lake Water Agency’s purchase of Valencia Water Co. could be put on hold until the CLWA seeks the proper approval from the CPUC, which commission officials said has yet to be sought or granted, in the ruling.

The purchase of the VWC would give CLWA officials control of approximately 84 percent of water retailers.  The move was approved by CLWA board members in December.

“It’s being reviewed, because it has to be responded to,” CLWA General Manager Dan Masnada said of Thursday’s ruling. “The only thing I can say is that it’s under review.”

While it was initially established as a water wholesaler, CLWA has a legal right to own Valencia Water Co., a water retailer, according to Masnada.  Masnada is also a recent appointee to the VWC board of directors.

However, in a complaint last month, members of SCOPE contend CLWA officials have no authority to make such as transfer, as the entity was set up as a water wholesaler meant to manage the distribution to retailing companies, not to be a water retailer itself.

“We asked the (CPUC) to require an application for the transfer of control pursuant to CPUC code,” said Lynne Plambeck, President of SCOPE. “They aren’t supposed to be able to transfer (VWC) until the CPUC approves the sale.

“This is the second time the CLWA has sort of thumbed its nose at the CPUC,” Plambeck said, citing the CLWA’s purchase of the Santa Clarita Water District as the first incident.

When the CLWA purchased the Santa Clarita Water District, which is also a local water retailer, it did so with a controversial piece of legislation that was not without opposition.

However, AB 134, which was legislation created to allow the CLWA to own and operate the Santa Clarita Water District and its 29,000 customers — or 41 percent of the retail market — with certain provisions that limited retail operations to SCWD customers. AB 134 cites that CLWA “may not exercise retail water authority outside the boundaries (prescribed for the SCWD).”

This means that as the state law stands now, the CLWA has the authority to own the water retailer, but it will be operated as a Public Utilities Commission-regulated entity.

The CPUC, which exercises statewide authority over all privately owned utilities, issued the ruling from its San Francisco office Thursday afternoon.

The official four-page ruling from the California Public Utility Commission stated the following:

1. Valencia Water Co. must file and serve an application for a transfer of control pursuant to California Pub. Util. Code §851 and any other applicable code provisions. This application must be filed no later than 14 days from the date of this ruling. (A.13-01-003, C.13-01-005 DUG/sbf)

2. Valencia Water Co. and Castaic Lake Water Agency must timely file and serve a full and complete answer to Case 13-01-005. (This case number is a reference to a recent complaint filed by SCOPE.)

3. All parties and persons of interest are hereby put on notice that any transfer of control of Valencia Water Co. to Castaic Lake Water Agency or any other entity may be void absent specific authority granted by this Commission.

(Dated January 31, 2013, at San Francisco, Calif.)

Comment On This Story

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Related Content
Latest Stories on SCVNews.com
1934 - Bouquet Canyon Reservoir, replacement for ill-fated St. Francis Dam & reservoir, begins to fill with water [story]
Bouquet Reservoir
The California Department of Public Health launched the “Never a Bother” campaign, a youth suicide prevention public awareness and outreach campaign for youth, young adults, and their parents, caregivers, and allies.
California Launches New Youth Suicide Prevention Campaign
The Santa Clarita Master Chorale invites the community to "Let the Sunshine In," a delightful evening of food, wine and song at the annual Cabaret & Cabernet fundraising benefit.
April 20: Santa Clarita Master Chorale’s Cabaret, Cabernet Fundraiser
The Los Angeles County Department of Public Health cautions residents who are planning to visit the below Los Angeles County beaches to avoid swimming, surfing, and playing in ocean waters:
March 27 Ocean Water Warning
As an integral ingredient necessary to help the Santa Clarita Valley to flourish, feedback from the business community is the secret sauce for achieving great things.
SCVEDEC Asks For the Business Community’s Opinion on Santa Clarita
Raise your heart rate while raising funds for the Santa Clarita Sister Cities Dollars-for-Desks campaign to provide school desks for students in Sariaya, Santa Clarita's Sister City in the Philippines.
April 13: Sister Cities Zumba-thon Fundraiser
Remo, Inc. is is the world's leading manufacturer and developer of synthetic drumheads and shells. They’ve been in business for 60 years
SCVEDC Company Spotlight: Drumming Up Big Business with Remo, Inc.
California State Assemblywoman Pilar Schiavo (D-Chatsworth) and Assemblyman James Ramos (D-Highland) have introduced AB 3074 the "School or athletic team names: California Racial Mascots Act."
Schiavo Introduces Bill to Prohibit ‘Derogatory’ School Mascot Names
Los Angeles County’s Justice, Care and Opportunities Department  in collaboration with Local Initiatives Support Corporation Los Angeles is proud to announce the 2nd Annual Pitch Competition for the cohorts of JCOD's Incubation Academy.
March 28: JCOD Incubation Academy Helps Grassroots Non-Profits For the Second Year
Children’s Bureau is seeking foster families and now offers two virtual ways for individuals and/or couples to learn how to help children in foster care while reunifying with birth families or how to provide legal permanency by adoption.
April 18: Children’s Bureau Hosts Virtual Orientation
The Sunburst track was constructed in 1887 by the Southern Pacific Railroad and was a part of the main line running between San Francisco and Los Angeles.
Enjoy Spring With a Ride On The Sunburst Track
California State Superintendent of Public Instruction Tony Thurmond hosted a Personal Finance Summit today where he announced his support for Assembly Bill 2927 (McCarty), legislation that would require a personal finance education course for California high school graduation.
State Superintendent Announces Support for Personal Finance Graduation Requirement
1847 - Probable birth date of Pico Canyon oil driller Charles Alexander Mentry [story]
C.A. Mentry
The first Music Jam Session at The MAIN was held on Thursday, Feb. 22 and was a hit. Come out and join in for the next one on Thursday, March 28 7 p.m.-9 p.m.
March 28: The MAIN to Host Musicians’ Jam Session
Los Angeles County Inspector General Max Huntsman of the Office of Inspector General has issued a report entitled "Tenth Report Back on Implementing Body-Worn Cameras in Los Angeles County."
Office of Inspector General Issues Latest Report on LASD Body Cams
College of the Canyons women's tennis played to a convincing 7-2 conference win over Ventura College on Moica to strengthen its potential playoff resume.
Canyons Closes Out Ventura 7-2 in Final Home Match
Join the Santa Clarita Valley Chamber of Commerce with the Latino Business Alliance at the Cinco de Mayo Networking Celebration on Tuesday, May 7.
May 7: Latino Business Alliance Cinco de Mayo Celebration
The Los Angeles County Department of Animal Care and Control is hosting March Meowness promotion where all cat adoptions are just $15 from now until April 9.
Adopt a Cat During March Meowness at Castaic Animal Center
California State University, Northridge is partnering with the Fernandeño Tataviam Band of Mission Indians and the Tataviam Land Conservancy to battle the impact of climate change in disadvantaged communities throughout the San Fernando Valley by establishing “urban forests.”
CSUN Partners with Fernandeño Tataviam Band to Build Urban Forests
Join the Santa Clarita Artists Association on Monday, April 15, 6:30-8:30 p.m. at Barnes and Noble, 23630 Valencia Blvd., Valencia, CA 91355, for the SCAA monthly meeting and guest demonstrator.
April 15: SCAA Presents Debbie Abshear Watercolor Demo
Residents are invited to join members of the Santa Clarita City Council for a special ribbon-cutting ceremony to celebrate the addition of Santa Clarita's 38th park, Skyline Ranch Park, 18355 Skyline Ranch Road, Santa Clarita, CA 91351, to the Santa Clarita parks system on Saturday, April 6, at 10 a.m.
April 6: Grand Opening for Santa Clarita’s 38th Park
The Santa Clarita Valley Senior Center is preparing for the annual fundraising event, Celebrity Waiter, with the theme “California Dreamin’” on Saturday, April 27 at Bella Vida, 27180 Golden Valley Road, Santa Clarita, CA 91351.
Table Sponsorships Still Available for Celebrity Waiter Dinner
Springtime in Santa Clarita brings not only vibrant blooms and opportunities to embrace the outdoors with warmer weather, but also an array of free, family-friendly events and this Saturday is no exception.
Ken Striplin | A Fun, Festive, Egg-Filled Day
SCVNews.com