header image

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

Inside
Weather


 
Calendar
Today in
S.C.V. History
March 29
1928 - Little dam victim, thought unidentified & buried in SCV, actually ID'd & buried in Chatsworth [story]
Newhall Cowboys


ncwd_logo[NCWD] – The Newhall County Water District  announced Monday that it has filed a lawsuit in Los Angeles County Superior Court to stop a harmful and costly water rate increase that would directly impact more than 44,000 residents that it serves.

>> READ CLWA’s response [here].

The lawsuit challenges a controversial new rate adopted by Castaic Lake Water Agency, a wholesale agency responsible for selling imported water to Santa Clarita Valley’s four retail water agencies, including NCWD.

NCWD’s lawsuit alleges a violation of Proposition 26, enacted by California voters in November of 2010, which requires governmental charges to bear a fair or reasonable relationship to benefits provided. To view a copy of NCWD’s lawsuit, [click here].

If fully implemented, CLWA’s plan would cost NCWD’s customers more than $850,000 per year in increased rates, at a time when all businesses and residents have had to cut back.

“We are standing up on behalf of our customers in opposition to this unfair, unprecedented rate increase,” said NCWD Board of Directors President Maria Gutzeit. “It’s very disappointing that Castaic Lake Water Agency has chosen to ignore the concerns of our District’s residents and businesses and move forward with this rate increase, which we will vigorously fight in court.”

 

Unprecedented and Unfair Rate Changes

For more than a decade, CLWA has implemented a “variable rate” structure for imported water, which means it charged Newhall and the other three water retailers only for the water each needed. This “pay as you go” formula provided the greatest amount of certainty and fairness for the local water agencies.

However, on February 27, 2013, CLWA’s board of directors voted 10-1 to impose a new fee that recovers 80 percent of CLWA’s budget from a “fixed rate” — or flat fee — that it plans to charge the local water retailers for imported water, regardless of the amount of imported water each local water retailer needs.

This fixed rate will redistribute costs for all water imported by CLWA effectively penalizing NCWD, which has historically relied on a higher percentage of local groundwater than the other retailers. NCWD continues to rely on local groundwater at the same levels it has historically over its 60 year existence.

CLWA is the only wholesale water agency in southern California that has imposed a rate structure that recovers such a large percentage of its costs on a fixed fee basis. By doing so, it discourages use of local resources and encourages use of CLWA’s more expensive imported water that comes via the environmentally sensitive Sacramento-San Joaquin Delta. Given the state legislature’s mandate that all California water retailers reduce water consumption by 20 percent by 2020 and spare the Delta as much as possible, these rates are not consistent with current public policy.

“We’ve done our part to innovate and become more efficient, but now NCWD and its customers are being punished by this rate increase,” said NCWD General Manager Steve Cole. “To not account for the use of our historic groundwater rights is just not right, and our Board took the necessary action to protect our customers.”

CLWA’s fixed rates will also include salaries, retirement benefits, public relations and other administrative overhead eliminating the need to consider more cost effective solutions. Additionally, as a wholesale water agency with no direct customers except its four member agencies, CLWA was not required to conduct a transparent public process to adopt the rates under Proposition 218, the state law that requires public notifications and, hearings before imposing water rate increases. See the table below which illustrates the impact of the new rate structure on NCWD customers.

 

Acre-foot

Purchased

Estimated

Annual Cost In Dollars

NCWD Cost

Per Acre-foot of

Imported Water

Current Rate

2,650

$1,343,500

$507

New Rate

2,650

$2,231,000

$842

 

 

Trend of Controversy for CLWA

This is the second controversial policy implemented by CLWA in recent months. The wholesale water agency is also being investigated by the California Public Utilities Commission (PUC) for the claimed illegal acquisition of the Valencia Water Company, a private retail water agency. NCWD believes this acquisition is a clear violation of the state law which expressly prohibits CLWA from serving as a retail agency in Valencia Water Company’s service area. This case is under investigation by the PUC with a local hearing scheduled for May 16, 2013.

 

About Newhall County Water District

Newhall County Water District traces its roots back to 1913 and is the Santa Clarita Valley’s first public water utility, currently providing service to more than 44,400 residents in portions of the City of Santa Clarita and unincorporated Los Angeles County communities, including Newhall, Canyon Country, Valencia and Castaic.

 

 

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

No Comments

    Leave a Comment


    SCV NewsBreak
    LOCAL NEWS HEADLINES
    Thursday, Mar 28, 2024
    April 16: FYI Seeks Volunteers To Pair With Local Foster Youth
    Local nonprofit Fostering Youth Independence is seeking “Allies” to support Santa Clarita youth who are aging out of the L.A. County foster care system.
    Thursday, Mar 28, 2024
    California Announces $25 Million in Awards for Youth Mental Health
    To support the mental health of California's young people, the California Department of Public Health awarded $25 million to 28 tribal and community-based organizations across the state.
    Wednesday, Mar 27, 2024
    California Launches New Youth Suicide Prevention Campaign
    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.
    Keep Up With Our Facebook

    Latest Additions to SCVNews.com
    1928 - Little dam victim, thought unidentified & buried in SCV, actually ID'd & buried in Chatsworth [story]
    Newhall Cowboys
    Los Angeles County Public Works is updating the Los Angeles County Bicycle Master Plan.
    April 16:  County Bicycle Master Plan Virtual Community Meeting
    College of the Canyons mens golf got back on track during its return to conference play on Monday, carding a five-man score of 370 to top the eight-team field at Brookside Golf Course and maintain its unblemished conference mark.
    Cougars Win Again, Keep Conference Streak
    Los Angeles County Treasurer and Tax Collector, reminds property owners that the second installment of the 2023-24 Annual Secured Property Taxes becomes  delinquent if not received by 5 p.m. Pacific Time or United States Postal Service postmarked on or before Wednesday, April 10, 2024.
    County Treasurer Reminds Property Owners of April 10 Due Date
    Local nonprofit Fostering Youth Independence is seeking “Allies” to support Santa Clarita youth who are aging out of the L.A. County foster care system.
    April 16: FYI Seeks Volunteers To Pair With Local Foster Youth
    The Los Angeles County Department of Public Health today unveiled the latest L.A. County Health Survey, which gathers vital data on health behaviors, conditions, neighborhood settings, and the needs of L.A .County residents, informing future public health policies and programs.
    Public Health Unveils the 2023 L.A. County Health Survey Findings
    Due to the projected rain forecast, Eggstravaganza will now be held indoors at the Canyon Country Community Center beginning promptly at 10 a.m. on March 30.
    March 30: Eggstravaganza Now Being Held Indoors at Canyon Country Community Center
    To support the mental health of California's young people, the California Department of Public Health awarded $25 million to 28 tribal and community-based organizations across the state.
    California Announces $25 Million in Awards for Youth Mental Health
    The College of the Canyons Athletic Department will host a dedication ceremony to unveil the Michele Jenkins Softball Team Room in honor of the longtime board member and ardent softball program supporter’s nearly 40 years of service to the district.
    April 16: COC to Host Michele Jenkins Team Room Dedication Ceremony
    PFLAG Santa Clarita has announced the establishment of the Peggy and Jeff Stabile PFLAG SCV Scholarship. The scholarship will provide financial assistance to LGBTQIA+ students pursuing higher education and committed to advocating for LGBTQIA+ rights and promoting diversity and inclusion.
    PFLAG SCV Announces Stabile PFLAG Scholarship
    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.
    SCVEDC 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
    SCVNews.com