[November 05, 2014]

Regulated Water Utilities Salute Water Bond Passage

Robert W. Nicholson, President of the California Water Association (CWA (News - Alert)), which represents 114 investor-owned water utilities regulated by the California Public Utilities Commission, released the following statement regarding the passage of Proposition 1, the "Water Quality, Supply and Infrastructure Improvement Act of 2014."

"The California Water Association applauds the passage of this historic $7.5 million bond. CWA commends the Governor and the Legislature for crafting the bond in a manner that resulted in broad support and avoided the pitfalls that forced the 2010 and 2012 versions to be postponed.

"For the first time in a statewide water bond, on a basis comparable to government-owned water utilities, customers of regulated, investor-owned water companies will be able to realize benefits from bond funding. Specifically, these funds will help offset customer costs for critical infrastructure projects like recycled water, groundwater clen-up, water-use efficiency, and safe drinking water for smaller systems in economically disadvantaged communities - all of which go beyond traditional supply sources and distribution needs.

"Despite the fact that regulated water utility customers pay equally for general obligation bonds through their taxes, in the past they were penalized because, unlike their government-owned utility counterparts, investor-owned water companies often were not eligible to apply for grants associated with such bonds.

"The CWA Board of Directors agreed to support Proposition 1 on September 16, following CWA's successful efforts earlier this year to ensure customers of regulated, investor-owned water utilities are eligible to benefit from bond funding.

"California's investor-owned water companies look forward to competing for and securing bond funding for eligible projects that improve drinking water quality in communities served by regulated water utilities; increase the use of water recycling and advanced water treatment technology; and help clean up contaminated groundwater aquifers."

About the California Water Association:

The California Water Association (CWA) represents the interests of approximately 114 investor-owned public utilities that are regulated by the California Public Utilities Commission. These water companies strive to provide high-quality water utility services to customers throughout California. CWA provides a forum for sharing best management practices; a means of promoting sound water policy by legislators and regulatory agencies; and opportunities for educating the public on the protection and efficient use of water resources. Robert W. Nicholson, in addition to being CWA's 2014-15 President is also President of San Gabriel Valley Water Company, based in El Monte, CA (News - Alert).

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