Private Water Firm No Bargain

* As LAFCO considers whether to move residents of Rancho Santa Margarita from a public water district to the privately owned California American Water Co., we thought they might like to hear about our recent experience with our private water supplier in Cypress.

A postcard arrived at our home recently, advising us that our investor-owned water supplier, Southern California Water Co. (SCWC), is requesting an obscene rate increase. SCWC is asking the PUC to approve an astounding 65% increase over the next three years!

By comparison, public water systems are seeking much smaller rate increases that are more in line with the increased cost of supplying water. Metropolitan Water District, the main water supplier for Southern California, is increasing its water rates to its customers by approximately 5% to 6%.

The reason Southern California Water Co. wants to increase rates by 65% is to line the pockets of the investors who own this private company. Their interests are not in providing quality service at the lowest cost, but providing the best return on investment to stockholders.

Since we are captive customers of a private water company, we have no locally elected board to hear our complaint. We can’t voice our displeasure at the ballot box. While we suspect it will fall on deaf ears, we’ve taken the only avenue available and have written a letter of protest to the Public Utilities Commission. LAFCO should think twice before they decide for the residents of Rancho Santa Margarita to “go private.”

The heck with privatization. We’d love to get out of the grip of this company and back to a nonprofit public water district.

MR. AND MRS. JAMES L. SMITH

Cypress